Market Update: Positive times ahead for HR Recruitment

Market update: positive times ahead for HR recruitment

The current HR marketplace remains a changeable beast. While we have seen a definite increase in activity in general, some of the unfortunate side effects of the recession remain in full force; namely very slow recruitment processes and constantly changing agendas. It's not all doom and gloom however; we have noted some positive changes in recent months.

HR salaries becoming more competitive

Last year, candidates were often only able to make a sideways step in terms of earnings, sometimes even taking a slight drop in salary. Now we see many employers basing offers on what the candidate is earning currently or comparable to their last salary, or making an offer with a slight increase in salary level. The average salary increase is now between £5,000 and £10,000, the higher end aimed towards more senior level candidates. This is viewed very much on a case-by-case basis.

Candidates leaving a permanent job will almost always be able to make a demand for a salary increase, largely due to a more targeted approach to their search for work.

HR candidates looking for career advancement

In the last 12 months, jobseekers were wary of switching roles in such a dire marketplace, choosing security over job satisfaction in the short-term which led to dissatisfaction within their current role. While others have found that they have had to substantially change their role to remain in employment and are now keen to get their career back on track so there are now more candidates looking for work who are already in permanent employment.

There is now a sense of positivity in the HR marketplace as larger firms are beginning to recruit again and in particular, this has boosted confidence among both job-seekers and smaller businesses.

In-house recruitment processes need to shape up

In 2009, as the market was slow, due to the economic conditions and swathes of redundancies, in-house recruiters were cautious so recruitment processes became lengthier. This meant it became a buyers market for in-house recruiters. For example, if we at Bullet submitted five candidates for a role and the interview did not take place until six weeks later, 4 out of 5 of these candidates would still be available for interview.

As of April this year, we have noticed that candidates are only on the market for a much shorter amount of time before getting snapped up. Now that figure can be as low as 2 out of 5 people still being available for interview six weeks later.

Employers are gradually beginning to sense and respond to this. However, interview processes are still quite long and drawn out. Within the past few weeks we have had a number of candidates offered roles while still between first and second stages of the interview process. As these candidates have to make a decision quickly, they havent been able to wait until the end of the process and have asked to withdraw.

This is happening more frequently, and the balance of power is shifting between in-house recruiters to jobseekers. In-house recruiters need to tighten up their recruitment processes and have a fast turnaround if they want to secure the best talent.

Shift in HR focus - positive future ahead

Last year there was a high demand for HR generalists and some reward specialists. Since March 2010, we have seen a slight drop in the number of HR generalist roles but a steady rise for in-house recruitment and learning positions.

This is a good sign that there is movement in the HR market as well as employers willing to invest in learning, development and training of their staff. The future looks positive for HR.

Ruth Blair, Consultant