The HR recruitment market has continued to improve throughout 2010. Overall, we have seen a marked increase in the number of roles coming to market in all disciplines and at all levels.

Quarter two saw significant hiring increases among large blue-chip organisations, with vacancies across a number of sectors. Retail, media and technology businesses have been particularly active, although we have also seen increased vacancies in the leisure, oil and gas, mining and legal sectors. Many commercial businesses are valuing industry-specific experience when recruiting for new roles.

In financial services, we have seen a significant increase in the number of HR positions at all levels and in all HR disciplines. However, employers remain cautious about signing off permanent roles in this sector meaning demand for contractors has been higher.

HR generalists most in demand

HR generalists in the £40-60k salary range have been most in demand during the last quarter, continuing the trend seen throughout the recession when businesses looked for professionals who could perform a variety of duties. These skills are now particularly valued as companies continue to rebuild and/or expand their HR functions. Employers also still require HR business partners and employee relations specialists to drive business change.

Learning & development professionals sought-after

There has also been a notable increase in learning and development roles available throughout the last quarter as firms focus on retaining and attracting talent in an increasingly competitive market. An increase in learning and development vacancies is generally a good barometer of improving market conditions, so this is an encouraging sign.

Recruitment and project specialists in demand

As employers again look to increase headcount following restructuring, we have seen increased demand for recruitment specialists during the last quarter. In-house and onsite resourcing roles have been particularly sought-after within large organisations. We have also seen a number of organisational development, transformation and change management project roles come to the market, especially within the larger investment banks that embarked on long-term change programmes.

Compensation & Benefits specialists increasingly sought-after

We have seen a significant increase in demand for compensation and Benefits specialists as a number of firms focus on their reward packages, again to attract new and retain existing staff. There is a distinct shortage of candidates with this skill set.

With significant demand for HR professionals in a number of sectors, there is a perception that the market is flooded with candidates. However, this is not the case.

Not only are firms focusing on retaining their best staff, but the good professionals that were looking to move at the beginning of the year have now been snapped up. As a result, the market has become more candidate-driven. In an increasingly competitive marketplace, firms with swift recruitment processes are best placed to secure top talent.

In 2009, many HR professionals were prepared to take a drop in salary after being made redundant, while a number of those who remained in their roles experienced a salary freeze. 

During quarter two, organisations began to acknowledge that they needed to pay for the best people and salaries increased as demand for top talent rose. Consequently, HR professionals now generally have greater pay expectations.

The summer holiday season may result in a slight slowing of recruitment activity in the short term. In the medium term, public sector cuts will start to have an impact on the market, although signs remain positive in the private sector. In financial services, we anticipate that salaries will continue to increase as the pace and volume of vacancies rise.