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Capacity issues 'haven't hampered hiring intentions'

Mar 02
Tags: Outsourcing
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Capacity issues 'haven't hampered hiring...

Management consultants are bound to be keeping a close eye on the UK's jobs market over the next few months, as a new report shows that many firms in the country do not currently have any spare capacity to take on more work.

This is according to the latest monthly JobsOutlook survey from the Recruitment and Employment Confederation (REC), which reveals that a significant 35 per cent of employers in Britain have no space to commit to new contracts at the moment.

In addition, 58 per cent of respondents to the poll said they only had 'a little' spare capacity to deal with demand for their services, meaning that, altogether, 93 per cent of firms are struggling. Therefore, an increasing number of companies may be seeking the advice of professional consultants as they work out how to overcome their current situation.

However, 77 per cent of bosses stated they were planning to increase their recruitment of permanent members of staff over the next three months, while 41 per cent were intending to look to agencies to gain short-term access to the skills of temporary workers - something that could potentially be a solution to the capacity issues.

Kevin Green, chief executive of the REC, explained: "The option of taking on temporary work is becoming more attractive and this is indicative of a labour market where the need for talent is acute."

What's more, the report found that 36 per cent of employees pay temporary members of staff either the same as or more than their permanent workers.

But to benefit from this, individuals need to make sure they are developing and nurturing their talents and are willing to work on a more flexible basis, especially as many of the UK's industries are currently suffering from skills shortages.

Mr Green added: "For business leaders and politicians, the focus needs to be on improving the talent pipeline so that more people develop the kind of skills that are needed. That means better careers advice in schools, vocational training and opportunities for older workers to reskill."

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