Overview of 2011 and Outlook to 2012 – Alison Hughes, Director

HR recruitment activity for the year as a whole has increased in comparison to last year across all the industry sectors that we work in (predominantly the private sector).  The year started relatively quietly with organisations appearing to be cautious about hiring and most awaiting the effect of pay review and bonus payments before making any new hiring decisions.  Thankfully in Q2 and Q3 a renewed buoyancy returned to the market and the summer was an unseasonably busy one!  The market dipped for a few weeks in October/November with organisations focusing on year end and delivery of budgets.  However, towards the end of November activity resumed with many thinking ahead to 2012 and new resourcing requirements.
 
One of the marked characteristics of 2011 in HR recruitment has been the dearth of active talent on the market.  High calibre candidates are performing well in their current organisations, being well looked after and will only look outside for a really compelling career development opportunity.  This is particularly noted in specialist HR areas such as reward.

The interim market is an area that has seen a good level of activity again this year.  Higher Talent hired a new consultant, Jim Cressey, to head up this area in 2011. 

So, how about 2012?  It is easy to be pessimistic with the current unemployment figures and global economic uncertainty.   The results of a recent YouGov survey, according to the CIPD, “point to a slow, painful contraction in the jobs market”.  Also that “there is no immediate sign of UK labour market conditions improving in the short or medium term”.

The truth is that UK employers are adopting a “wait and see” policy towards the economy.  I believe that 2012 will have a similar pattern to 2011, with a slightly cautious start and activity picking up from Q2 onwards.  I envisage that high calibre candidates will still be staying put unless they are given a truly compelling proposition.

For this reason, employing organisations need to change the way that they source candidates, ensuring that they reach the high performing, passive candidate market.  Organisations also need to ensure that they have a great proposition to sell to this passive candidate base, focusing on career development opportunities and promoting flexibility.

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