Employers need to move fast to access a shrinking talent pool

Extended recruitment processes are proving a major stumbling block for employers in a market that is witnessing a real battle for talent.

The CIPD’s 2013 survey, Resourcing and Talent Planning, states that larger organisations are most affected, with 57 per cent of companies with more than 5,000 employees reporting they have lost potential recruits due to the length of the process.

While there has been a shift in the recruitment process, with online selection tests used by a fifth of organisations and an increasing number of interviews carried out by telephone, employers need to be smarter if they want to secure top talent.

The latest Recruitment and Employment Confederation (REC) and KPMG report points to an acceleration of both permanent and temporary placements, especially in the South East. Permanent placements are reported at a five-month high, with temporary placements at a seven-month high.

Wayne Brophy, Managing Director of specialist recruitment company, Cast UK, commented: “This market buoyancy may sound like good news for employers, but with a shrinking talent pool, there is heightened competition to attract the best talent. This is particularly challenging in larger organisations, which can sometimes be weighed down by bureaucracy and can lack the agility of more entrepreneurial counterparts.”

This skills gap is reiterated by the REC and KPMG report which points to the sharpest decline in permanent candidate availability since the survey commenced in 1997.

Wayne added: “These statistics should remind employers of the value of using recruitment partners who specialise in their designated markets. It is also an opportunity for organisations to focus on creating true ‘employer brands’ and to think hard about how they tackle the entire recruitment process.”

Employers turn to interim managers as competition for talent increases

There has been a shift in the recruitment market, with a 15 per cent increase in demand for interim managers, as reported by the Interim Management Association (IMA), in the first quarter of 2014.

The financial services industry takes the lead, accounting for 45 per cent of interim appointments in the private sector in Q1, according to the IMA.

Specialist recruitment company, Cast UK, is seeing this trend mirrored in its clients’ recruitment strategies, with an exponential increase in interim managers across its sector specialisms, peaking in FMCG/Retail which has seen a 45 per cent surge this year alone.

Wayne Brophy, Managing Director at Cast UK, commented: “Although we seem to be coming out of the recession, we’re seeing a continued demand for interim managers as employers recognise the value of a more flexible approach to recruitment.

“With significant skills shortages in certain sectors, a reduced talent pool is also a catalyst for this as employers are seeking highly experienced, specialist talent with a proven track record, who can hit the ground running.”

The rise in demand for interims is also reflected in the CIPD’s 2013 survey, Resourcing and Talent Planning, which reported that three-fifths of companies surveyed believe that the economic environment will increase demand for interim and contract workers.

It’s also worth noting that the rate of change within businesses is creating a mismatch between the skills required by businesses and the talent available in the labour market.

Wayne added: “Our clients are increasingly recognising the value of interim managers, either to help solve a short-term employment problem or as a smart means of managing growth and enhancing the organisation’s skills base. While historically, interims were seen as a bit of a leap of faith and a departure from traditional resourcing models, organisations are switching on to the benefits of interim managers, particularly from a commercial point of view.”

For more information, visit: http://www.castuk.com/interim-recruitment-services

KPMG’s “Global Manufacturing Outlook” report highlights new challenges for sector

According to KPMG’s 2014 report “Global Manufacturing Outlook: Performance in the crosshairs,” manufacturers are set to face a new set of challenges around product development strategies and supply chain, while it’s also been revealed that there is emphasis on understanding product costs and profitability.

The report highlights the following key findings:

·       Manufacturers are focused on understanding their product cost and profitability. Only 12 per cent of respondents said they were ‘very effective’ at determining product profitability. Many suggest that they plan to commit either moderate or significant investment into enhancing their systems and processes for profit and cost information. More than half say that – over the next two years – they will place either a moderate or high priority on adopting processes and systems to achieve the real-time measurement of product cost and profitability.

·       Organisations are rethinking their product development strategy. Respondents are increasingly focused on enhanced spending, shifting towards breakthrough innovation objectives and exploring new collaborative business models to create competitive advantage. Seventy per cent of respondents said they would double their level of spend in R&D. Yet at the same time, 88 per cent said that partnerships, not in-house efforts, would form the future of innovation. Technology is also coming into play; three-quarters of respondents say they are better leveraging decision-support technology in their R&D function.

·       Supply chain transparency and visibility remain a key challenge for manufacturers. Forty per cent of respondents admit they lack visibility across their extended supply chain, with 33 per cent saying it was due to either inadequate IT systems or a lack of skills. Our research suggests that many of the gains in supply chain visibility have resulted from stronger relationships between manufacturers and their top-tier suppliers and the willingness to share more real-time data across the value chain.

·       The majority of respondents think that they could achieve a globally integrated supply chain within the next three to five years. More than half say that they use global demand planning and global capacity planning technologies in their supply chain enterprise-wide. More than three-quarters say that their relationship with top tier suppliers is now strong enough for them to share real-time capacity and demand data.

Commenting on these findings, Managing Consultant at specialist recruitment company, Cast UK, Mark Nesbit points to the development of employee skill sets as key to effective relationship management and recruitment, which was highlighted in the KPMG report.

“As skills development and managing relationships with top-tier suppliers are noted as a priority, appointing experienced professionals that can harness these challenges and translate them into growth for the companies in which they operate will be key.

“From the report it’s clear to see that manufacturers are focused on profitable growth. Increasing levels of supply chain transparency and visibility; improving use of data, analytics and business intelligence tools; integration of new technologies; and a continuation of the trend towards greater partnerships and collaborative business models are at the forefront of these strategies.”

At Cast UK, all senior recruiters have either worked directly in logistics, procurement and supply chain or have extensive experience in our specialist areas. This business model ensures that recruiters are informed about the industry challenges faced by their clients and they can assist them with finding the right people to tackle these demands.

“It will be interesting to see how our clients approach these challenges, as this will surely shape recruitment strategies moving forwards. Furthermore, university programmes should take note of the findings and adapt to these new demands to ensure that professionals coming into supply chain, procurement or logistics understand the new role that these positions will play in business,” concludes Mark.