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What’s happening…
INTERIM RECRUITMENT ACTIVITY
Interim activity remained static through the first 2 months of 2024; improved in March, and we were expecting to see a further up-tick with new financial year budgets. Surprisingly, the expected increase in activity was not really evident in April, but we hope this is a short-term anomaly, and we will see more interim opportunities, as we progress through this year and into next.
Rates on the Interim side remain largely static, and despite some recent legislation changes / tweaks in Off-Payroll (IR35) legislation, we have seen no significant change in the amount of outside IR35 roles available, with most interim roles still inside (circa 80% inside).
Public Sector, Councils and Utilities sectors remain busy, but rates are paying circa 20% below the private sector.
Fixed Term Contracts (pro-rata salary-based roles) are still quite popular with clients but less so with candidates, with circa 20% of interim roles initially sought on FTC basis.
PERMANENT RECRUITMENT ACTIVITY
Permanent market recruitment activity picked up in the first 3 months of 2024. However, April was quieter than expected, although we are now beginning to see more activity across the market.
Rates on the Permanent side remain static, although as ever, particularly hard to find skills sets will secure higher than average salaries. Demand for the very best people in Fintech, Financial Services and Pharma can secure these people significantly higher than market average salaries.
Pharma, Fintech, Banking and Utilities remain the busiest sectors.
There are some categories and disciplines that remain particularly buoyant:
- IT (across almost all disciplines: Digital, Datacentres, Hardware, Software, Telco and Networks)
- Professional and HR Services
- Construction Infrastructure (PCR and UCR regulated)
HIRER AND JOB SEEKER MISMATCHES
The challenge of aligning employers and job seekers expectations is as significant as ever, as the recruitment market changes and tries to find equilibrium.
We see plenty of evidence of organisations still looking for ‘Unicorn’ candidates, with some organisations exhibiting a significant mismatch between the specific skillsets required and the salary and package offered, leading to certain roles remaining unfilled for a long time. This disparity becomes an even greater challenge for organisations that require people to be back in the office four or five days a week. However, as my daughter tells me, “Unicorns do exist you just have to look a bit harder for them”, I try and remember this though most days! This is why our clients come to us, to find those hard-to-find people, with very specific procurement and soft skill sets, often, when our clients have exhausted all other avenues of candidate sourcing.
BACK TO THE OFFICE!
We have seen a move towards more companies wanting their people back in 3 days a week as a minimum, with some American companies now looking to move up to 4 or even 5 days a week. Usually this is far from popular with candidates, especially as attendance is becoming a bonus dependent mandate.
PROCUREMENT TALENT REMAINS HARD TO FIND
Many Internal Recruitment Teams are still struggling to find candidates with suitable experience and specialist category skills. Many specialist procurement and vendor management skills remain hard to find and secure, and these subtleties are frequently unidentified or misunderstood by some generalist recruiters.
Speed of the Recruitment Process is still critical to secure good people. For certain categories, candidates are receiving multiple offers, and we have seen some recruitment campaigns flounder when internal recruitment processes are slow or ineffective.
2024 PREDICTIONS
We are hoping for some improvement in the economic environment and labour market, although current indicators are mixed:
The UK SERVICES sector looks positive, with the latest Purchase Managers Index (PMI) data showing Service Sector output growth the strongest since May 2023 (a rise to 55.0 in April from 53.1 in March). Commenting on the latest figures, Tim Moore, Economics Director at S&P Global Market Intelligence said, “Business activity expectations for the year ahead were upbeat overall in April, therefore adding to signs that the recovery in service sector performance has further to run. Election uncertainty and fading prospects for interest rate cuts were cited as headwinds on the horizon, but survey respondents still mostly reported positive sentiment towards their business investment plans and longer-term growth opportunities.”
Indicators for the MANUFACTURING sector are less encouraging, with Purchasing Managers’ Index (PMI) falling from 49.1 in April, down from March's 20-month high of 50.3. “The sector is still besieged by weak market confidence, client destocking and disruptions caused by the ongoing Red Sea crisis”, said Rob Dobson, Director at S&P Global Market Intelligence, and he goes on to say, “the downturn is also sustaining cost caution at manufacturers, leading to lower employment, stock holdings and cutbacks in purchasing activity” (Sources: S&P Global Bulletins, May 24).
The last KPMG and REC, UK Report on Jobs survey in March, compiled by S&P Global, reflects our own observations that “recruitment activity remained dampened by lingering economic uncertainty and subsequent hesitancy around hiring”; and “candidate shortages remain, with recruiters citing hesitancy to move roles”.
Procurement and Vendor Management Talent remains hard to find and secure. Employer’s need to ensure their brand, recruitment processes, on-boarding and specialist recruitment partners, all work seamlessly to maximise their talent attraction proposition. Organisations that get this right, will secure competitive advantage by inspiring and securing best fit people who will truly enhance the operation and efficiency of their procurement and vendor management functions.
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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
Meet Our Team of Procurement Recruitment Specialists at Beaumont Select
Beaumont Select Market Bulletin, May 2024
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