Salary inflation at the slowest recorded rate in nearly three years | Consensus HR | Herts, Beds
While February 2024 saw further increases in rates of starting pay for both permanent and temporary workers, as employers reacted to competition for highly-skilled candidates, the rate of salary inflation was the slowest recorded since 2021.
This is one of the key findings in the latest Report on Jobs published by the Recruitment and Employment Confederation (REC) and KPMG.
Ongoing economic uncertainty and hesitancy to commit to new hires amid cost pressures led to a further marked fall in permanent placements, the report notes, while temp billings dropped at the steepest rate since mid-2020.
With uncertainty over the economic outlook leading employers to often delay or freeze hiring decisions, the number of people placed into permanent jobs across the UK continued to decline markedly midway through the first quarter (Q1) of 2024.
The availability of staff rose for the 12th straight month in February amid reports of redundancies and a slowdown in hiring activity.
REC Chief Executive, Neil Carberry, said: “The temporary labour market is the unsung hero of the economic uncertainty of recent years. It keeps the cogs of the economy turning amidst uncertainty and labour shortages — but it still needs nurturing. As we approach the General Election, businesses will be looking to politicians for commitment on this, and reforms of regulation that will support it from IR35, to regulating of the umbrella market and delivering flexibility to the Apprenticeship Levy.”
The retail and construction sectors led the downturn in demand for temporary workers. Of the 10 surveyed job categories, only blue-collar and engineering noted increases in demand for short-term staff during February.
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Our HR Comment / Advice:- Salary inflation at the slowest recorded rate in nearly three years | Consensus HR | Herts, Beds
Matthew Chilcott, FCIPD, ACEL, owner of Consensus HR comments: “These statistic from these reports demonstrate the current labour market and vas uncertainties of what to expect with the Election approaching and highlight why businesses need to ensure that their Recruitment Strategy is correct for their business. At Consensus HR, we understand that selecting the right candidates whilst attracting them to your business is never easy, whilst ensuring when you have successfully recruited that you retain them. This is why we always encourage our clients to look at the bigger picture and their companies HR Strategy in general for the success of the business and the member of the team. Getting your recruitment strategy right is the start but then ensuring that they remain motivated and an asset to the company is another chapter. Their Induction, development, performance reviews, Contracts of Employment, Employee Handbooks from day one of employment and the list goes on are all key parts of getting your HR strategy right and becoming an employer of choice. Believe me, this is not easy and maintaining it, is another challenge.
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