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WHY YOUR JOB WILL GET
HARDER IN 2014….
… AND WHAT YOU CAN DO
ABOUT IT.
RUSSELL BECK
HEAD OF CONSULTING, IMPELLAM
63% OF CEOs ARE CONCERNED
ABOUT AVAILABILITY OF KEY SKILLS
2012
53%
2008
2009
2010
2011
2013
2014
63%
58%
56%
51%
61%
46%
93% SAY THEY RECOGNISE THE
NEED TO CHANGE THEIR STRATEGIES
FOR TALENT
61% HAVEN’T
TAKEN THE FIRST
STEP
ONLY 34% OF CEOs FEEL THAT HR
IS WELL PREPARED FOR THE
CHALLENGE AHEAD
THIS IS WHAT
IS KEEPING
CEOs UP AT
NIGHT
FORECAST UK
ECONOMIC
GROWTH IN 2014 2.9%
% OF EMPLOYERS
WHO PLAN TO
INCREASE THE
NUMBER OF PERM
EMPLOYEES
75%In next 3
mon...
Seasonally adjusted vacancies
Source: ONS
600k
550k
500k
450k
400k
0
2009 2010 2012 Q1-142011 2013
INCREASE INLIFE
EXPECTANCY
2012-2037
5 years
%OFUK
WORKING
POPULATION
OVER50in2020
33%
INCREASE IN%OF
EARLY60YEARS
OLDSEMP...
%UK
COMPANIES
THATOFFER
APPRENTICES
HIPS
15%
9TH GRADE ENTRANTS 100,000
GRADUATES 68,000
COLLEGE ENTRANTS 40,000
DEGREE QU...
11
10
9
8
7
6
2009 2010 2012 Q1-142011 2013
UN-EMPLOYMENT RATE (%)
D1 S1D2 S2
Increase in
demand
Decrease in
supply
PRICE INCREASE IF
ONLY DEMAND OR
ONLY SUPPLY
ALTERED
PRICE INCREASE IF
BO...
A PROGRESSIVE
APPROACH
HR
In-house or
RPO
Procurement
Line or
MSP/MV/NV/hybrid
Line
PSL or
Direct
Perm
Full–time
Part-time
Apprenticeships
Gradua...
WHAT ARE THE BUSINESSES’
STRATEGIC TALENT NEEDS?
WHAT GAPS DO WE HAVE INTERNALLY
AND EXTERNALLY?
CREATE A SOLUTION
BUY BUILD
BOOST
BOUNCE
BORROW
BIND
13,500 $2.6bn 2.9m
“LIVE THE REWARDING LIFE YOU
DESERVE EVERYDAY”
“ENJOY FREEDOM AND FLEXIBILITY”
“BE REWARDED”
18
“A WORLD LEADER
IN CONTEMPORARY
DANCE”
3 STARTERS FOR 30
YOU ARE HERE
Stop doing what you are doing because you have always done it
3 STARTERS FOR 30
YOU ARE HERE
Stop doing what you are doing because you have always done it
Plan
Make direct sourcing hol...
THIS IS WHAT
IS KEEPING
CEOs UP AT
NIGHT
MAYBE YOU CAN
HELP THEM GET
SOME SLEEP
RUSSELL BECK
russell.beck@impellam.com
07710 898904
Why recruitment will be harder in 2014, and what you can do about it
Why recruitment will be harder in 2014, and what you can do about it
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Why recruitment will be harder in 2014, and what you can do about it

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I gave this presentation at the Talent Leaders Connect conference on 12 June 2014. I wanted to show that Talent is the #1 factor keeping CEOs up at night, but that CEOs have limited faith in HR solving this, their single biggest issue. I then show how the economy is in out and out growth mode which means demand is increasing whilst supply decreasing making HRs job exponentially harder.

I then propose a way forward and suggest that embracing an "agile workforce" could help solve this. I show two companies where they have done just this and the benefits that gave each.

I then propose 3 tangible solutions to help HR on the journey.

Given demographics and skills shortages, these changes will happen, will HR embrace them or be led by them?

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Why recruitment will be harder in 2014, and what you can do about it

  1. 1. WHY YOUR JOB WILL GET HARDER IN 2014…. … AND WHAT YOU CAN DO ABOUT IT. RUSSELL BECK HEAD OF CONSULTING, IMPELLAM
  2. 2. 63% OF CEOs ARE CONCERNED ABOUT AVAILABILITY OF KEY SKILLS 2012 53% 2008 2009 2010 2011 2013 2014 63% 58% 56% 51% 61% 46%
  3. 3. 93% SAY THEY RECOGNISE THE NEED TO CHANGE THEIR STRATEGIES FOR TALENT 61% HAVEN’T TAKEN THE FIRST STEP
  4. 4. ONLY 34% OF CEOs FEEL THAT HR IS WELL PREPARED FOR THE CHALLENGE AHEAD
  5. 5. THIS IS WHAT IS KEEPING CEOs UP AT NIGHT
  6. 6. FORECAST UK ECONOMIC GROWTH IN 2014 2.9% % OF EMPLOYERS WHO PLAN TO INCREASE THE NUMBER OF PERM EMPLOYEES 75%In next 3 months % EMPLOYERS WHO PLAN TO INCREASE THE USE OF AGENCY LABOUR 48%In next 4- 12 months PERMANENT SALARY GROWTH IS AT ITS HIGHEST SINCE 2007 CONTINGENT PAY GROWTH IS AT ITS HIGHEST SINCE JULY 2013 2012 SAW THE FIRST INCREASE IN THE DIVORCE RATE SINCE 2007 REALISTIC GROWTH IN SIZE OF UK RECRUITMENT MARKET 8%annually
  7. 7. Seasonally adjusted vacancies Source: ONS 600k 550k 500k 450k 400k 0 2009 2010 2012 Q1-142011 2013
  8. 8. INCREASE INLIFE EXPECTANCY 2012-2037 5 years %OFUK WORKING POPULATION OVER50in2020 33% INCREASE IN%OF EARLY60YEARS OLDSEMPLOYED INGERMANY, TODAYVS.2004 100%
  9. 9. %UK COMPANIES THATOFFER APPRENTICES HIPS 15% 9TH GRADE ENTRANTS 100,000 GRADUATES 68,000 COLLEGE ENTRANTS 40,000 DEGREE QUALIFIED 17,000 ENGINEERS 800 MECH. ENGINEERS 125 4.3M 5,375 11,157
  10. 10. 11 10 9 8 7 6 2009 2010 2012 Q1-142011 2013 UN-EMPLOYMENT RATE (%)
  11. 11. D1 S1D2 S2 Increase in demand Decrease in supply PRICE INCREASE IF ONLY DEMAND OR ONLY SUPPLY ALTERED PRICE INCREASE IF BOTH DEMAND AND SUPPLY ALTER
  12. 12. A PROGRESSIVE APPROACH
  13. 13. HR In-house or RPO Procurement Line or MSP/MV/NV/hybrid Line PSL or Direct Perm Full–time Part-time Apprenticeships Graduates Contingent Limited Company Temporary Consulting Workforce packages SoW On/Off shore Partners Consultancies
  14. 14. WHAT ARE THE BUSINESSES’ STRATEGIC TALENT NEEDS? WHAT GAPS DO WE HAVE INTERNALLY AND EXTERNALLY? CREATE A SOLUTION
  15. 15. BUY BUILD BOOST BOUNCE BORROW BIND
  16. 16. 13,500 $2.6bn 2.9m “LIVE THE REWARDING LIFE YOU DESERVE EVERYDAY” “ENJOY FREEDOM AND FLEXIBILITY” “BE REWARDED”
  17. 17. 18 “A WORLD LEADER IN CONTEMPORARY DANCE”
  18. 18. 3 STARTERS FOR 30 YOU ARE HERE Stop doing what you are doing because you have always done it
  19. 19. 3 STARTERS FOR 30 YOU ARE HERE Stop doing what you are doing because you have always done it Plan Make direct sourcing holistic
  20. 20. THIS IS WHAT IS KEEPING CEOs UP AT NIGHT
  21. 21. MAYBE YOU CAN HELP THEM GET SOME SLEEP
  22. 22. RUSSELL BECK russell.beck@impellam.com 07710 898904

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