The fast growth in permanent staffing demand we saw last year has slowed somewhat as we have moved through 2023 and permanent recruitment growth has been moderate over the last three-months, as ongoing economic uncertainty has brought a more cautious approach to permanent recruitment amongst some of our clients. As permanent demand has levelled off, we have seen some strengthening in demand for Interim staff as many businesses adopt ‘lower risk’ staffing strategies in what remains an uncertain economic and geopolitical environment; we have clearly seen more of our clients looking for Interim solutions over the last 6 weeks.
Our own observations mirror the latest KPMG/ REC, UK Report on Jobs for April, which points to ongoing uncertainty around the economic outlook bringing more cautious hiring policies and driving divergence between permanent and temporary employment. The UK’s overall preference for short term staff that pushed up temporary billing growth to a seven-month high, while permanent staff appointments contracted at the fastest pace for two years; while vacancy growth slips to a three-month low, according to KPMG/REC UK figures.
On a more positive note, latest figures for May from the S&P Global / CIPS Flash UK PMI data “signalled another solid increase in private sector output, although the speed of expansion slowed since April. UK economic growth remained centred on the service sector, with travel, leisure and hospitality businesses widely commenting on resilient consumer demand. In contrast, manufacturing firms indicated the steepest reduction in production levels for four months.”
INTERIM UPDATES:
Interim Pay Rates have remained fairly level although as we are beginning to see demand for Interim specialists, we anticipate some demand pressure possibly pushing up rates as we progress though the year.
Most roles (unless very senior) are still inside IR35 regulations, and we are seeing a roughly 80% inside IR35 and 20% outside split.
Fixed Term Contracts (FTCs) are still being offered by many employers but remain quite unpopular with contractors, however with some companies making people redundant the number of interim roles inside IR35 are blurring the benefits of interim that are possible to fill.
BUSY SECTORS:
The Automotive Sector is busy with nearly all OEMs recruiting within purchasing and supply chain. The move to EV and the need for more effective supply chains to secure increasingly harder to find resources and the demand to reduce EV cost as manufacturers grapple with the challenges of group emissions targets, are driving demand for good people across the automotive supply chain.
Financial Services: We have seen a lot of demand (permanent and interim) from our FinTech clients. These firms are sometimes paying at the top or even above market rate to secure the very best people.
Technologies Sector: Demanded since the pandemic waned as the sector grappled with a somewhat gloomy outlook and to ‘right-size’ their organisation for a post pandemic world. Quite a few interims have come to the market as demand from the big technology companies has slowed and projects put on hold.
EUROPE
Our Europe Desk remains buoyant, and the EU market seems busier than the UK, supported by economic comparisons that point to the UK sitting behind our European competitors in terms economic activity and growth.
To support our European and Global Business we are delighted to welcome Alec Farlow to the Beaumont Select team, Alec is leading our EU/International Team and brings with him many years of International Recruitment experience in Procurement, Supply Chain and Technology; we are absolutely delighted that he has chosen to join the Beaumont Select team.
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WHAT MAKES A SUCCESSFUL RECRUITMENT CAMPAIGN
This year we have worked with numerous clients across multiple sectors, on large recruitment campaigns. Recruitment campaigns that have worked well need to fulfil some simple requirements:
Team of 25 for an Iconic Automotive Brand: A campaign to recruit mainly Buyer and Senior plus, material Planners, Procurement Programme Managers and analysts. Highly successful project due detail person/job briefs, quick turnaround of Candidate profiles/CV’s, comprehensive feedback and ability to get offers out quickly.
Team of 3 Capex Category Managers and 1 Buyer for a Global Chemicals company, roles based in Amsterdam: Although very specific in their requirements, great people were found and secured. Interviews were turned around quickly with swift feedback and notification as to any changes in requirements.
Team of 5 for Global Insurance Company: We found, secured and placed an exceptional Head of Procurement on an interim basis while they searched a perm resource, followed by an IT Category Manager and Procurement analyst. Successful as they quickly recruited a HOP to drive the process enabling then not to have to rush into a perm appointment for Head off role.
Team of 20 for a Major Infrastructure Provider: Campaign to secure 10 people in the SRM space and 10 in Sourcing proved slower than it should have been, due to salaries being slightly below the market rate, but more importantly slow feedback on Candidate CVs submitted meaning that the good candidates were no longer on the market. It would be simple for the client to rectify and improve. Time is the enemy in almost every recruitment scenario, good candidates will lose interest, lose confidence in their prospective employer and more than likely find something else.
With multiple roles speed of CV review to Interview and one or two senior people pushing things forward over a prolonged period, will help ensure the talent found and identified is secured.
Recruiting larger teams takes time (reviewing, interviewing, feeding back) and effort. If companies put in the time, they will get the best people. Good candidates have choices, and they will choose companies that are swift and competent in their decision-making process.
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SUMMARY
Continued economic uncertainty is making recruitment decisions for business hard. There definitely appears to be some resistance to making longer term hiring decisions in some sectors among some employers, although in many we are still seeing high demand. While uncertainty remains, we anticipate the interim market will strengthen and the permanent market to remain buoyant across almost all sectors.
The increased visibility of effective procurement and supply chain management to business success fortifies the need for talented supply chain, vendor management and procurement people whether it be for interim or permanent requirements.
Changes brought about by the Pandemic, Brexit, Supply Chain Security, Environment, Sustainability, Corporate Social Governance, and war in Europe do nothing but fortify the importance of effective supply chain and procurement teams and we see procurement, vendor management and supply chain job sectors remaining more resilient to UK and world economic challenges than most other sectors.
If you would like more information about Interim or Permanent Recruitment Solutions for Procurement, Supply Chain and Vendor Management disciplines, please call:
T: +44 (0)1403 248 448
E: info@beselect.co.uk
The Beaumont Select Recruitment Team
Beaumont Select Market Bulletin, June 2023
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