A candidate-driven market
As the global economy lifts itself out of recession, we once again find ourselves in an increasingly candidate driven market. The CIPD's recent Resourcing & Talent Planning survey reported that the proportion of organisations experiencing recruitment difficulties, such as failure to find candidates with the necessary specialist or technical skills, had risen threefold from 20% in 2009 to 62% last year and retention issues were also found to be increasing.
Hiring in the city on the up?
The recently released CBI/PwC financial services survey saw an “upsurge in optimism, business and jobs”. It says that the City is now the fastest-growing part of the UK economy with employment growing at its fastest rate since 2007 and 10,000 new staff hired in Q4 last year with an additional 15,000 hires planned for Q1 this year.
Our experience in the last twelve months mirror both of those surveys’ findings: the Oakleaf HR Job Index (HRJI) registered an 87% year-on-year increase in new positions in financial services and 73% in professional services.
It seems we are indeed entering another 'war for talent' in HR: for the first time in five years we are witnessing multiple offers, buy-backs and sign-on bonuses being paid.
Where is HR heading?
With this in mind, and just over five years since the start of the global financial crisis, we thought it was time to take another look at the talent crunch in city HR and examine what exactly has changed since 2008: what impact has the recession had, what are the current themes/challenges and in which direction is the profession now heading?
Exclusive research findings
We surveyed more than 100 senior-level city HR and resourcing professionals to find out what constitutes a 'quality' HR candidate, what is driving hiring, the impact of outsourcing and shared services, and anticipated future trends.
We found that HR functions across the financial and professional services sectors have changed fundamentally during the course of the last five years and the skills required have changed accordingly.
Some of our key findings include:
- 67% still believe that there are not enough quality HR professionals within financial and professional services
- Over 70% now feel they contribute directly to the formation of business strategy, compared with 59% previously
- Nearly one third state that they are not well equipped for working in the current climate and a quarter feel they are under-skilled
- 60% still agree that HR staff leave the city for a better work-life balance
- 90% now view Shared Services as a distinct benefit in the delivery of core HR services and its usage has grown by nearly 10% over the period
- 66% say the value of HR is proven by being on the board, a 61% improvement.
Read the full report
To read the full report and access the research findings, please click here.