There are now more vacancies than job seekers in 32 of the top 50 UK cities with the UK witnessing steady growth after a lengthy economic downturn. With these trends expected to continue, employee turnover, disengaged staff and the recruitment challenges facing organisations are set to become growing areas of concern in the boardroom.
Today’s professional candidates – especially Millennials – are increasingly more informed about their market value and more discerning about where they choose to work. This has led to a fundamental shift in the recruitment landscape that has seen the transformation of candidate expectations with regards to flexible working patterns and the achievement of work/life balance. Candidates are increasingly looking for roles with growth potential but also positions that fit their lifestyles. Businesses must address these areas with a view to not only retention, but also ensuring staff remain engaged.
Disengagement on the rise
Disengagement costs the UK up to £70 billion per year in lost productivity, with research finding that 83% of UK employees are not engaged or actively disengaged at work. Disengaged staff can considerably impact the workplace, with these employees often performing their contractual responsibilities but not necessarily engaging with the business’ goals, objectives and vision.
The recruitment and retention challenges that now face businesses will continue to evolve as candidates expect clear and transparent opportunities for career development. Organisations need to have tools in place to identify the risks on the horizon in order to align workforce requirements closely with budgets.
Adapting to future workforce needs
Forward-thinking companies are recognising the importance of integrated HR solutions that support both internal and external application processes as well as the associated workflows and data management. Human capital management (HCM) HR software systems are now enabling managers to look at data strategically to understand the issues around retention. These systems play a crucial role in the reporting process, providing information about employee performance, age, career aspirations and salary analysis to allow managers to have a comprehensive understanding of the workforce and plan for the future.
Further insight on this topic is available in our latest whitepaper, The changing recruitment landscape: attracting and retaining top talent.