Availability of permanent tech staff drops at near-record pace!
Recent data from the Royal Bank of Scotland Report on Jobs, published November 5th, 2021, for October, portrayed an abating rate of growth of hiring activity following the summer record upturn in Scotland.
The continued rise in appointments amid strong demand for staff was due to the reopening of the economy, but the rates of increase of both permanent placements and temporary billings eased to the slowest since March and April, respectively.
The October numbers showed a further steep rise in the demand for permanent employees all over Scotland – the second-quickest rate of increase recorded, cutting close to August’s peak. The demand was met with a drop in the supply of permanent staff for the ninth time in nine months during October. Scotland outpaced the UK average in the rate of vacancy growth by a vast margin. IT & Computing, followed by Engineering & Construction, registered the most significant increase in vacancies.
Anecdotal evidence attributed the most recent dip to the pandemic, Brexit, candidates’ reluctance to switch positions and the upsurge in demand for staff. Furthermore, Scotland registered the second-fastest rate of decrease in permanent labour supply since August 2014, which is more rapid than the UK recorded as a whole.
Because of this, pay pressures stayed elevated in October, with salaries rising for the eleventh time for permanent starters in as many months. Panellists pointed to candidate shortages being responsible for the latest increase. Nevertheless, the salary inflation rate eased slightly from the all-time peak registered in September to become the second-fastest on record.
What this Means for Tech Employers
From these reports filed by the Royal Bank of Scotland, it is pretty evident that there is massive pressure on recruitment, especially in the tech space. Moreover, whereas finding tech talent is one thing, getting them to move jobs is another. Therefore, to ensure that the tech positions at your organization will be filled before the end of the year, here are some essential things to note:
- Review salaries now – Since salaries are going up across the country, the first thing to do is to review the wages for your existing workforce. Retention is critical at this time, so make sure you are willing to pay the going rate and beyond for the key employees you require.
- Time to hire will take longer – Candidates will start to feel bombarded at this time and will be reluctant to have career conversations. Many are unwilling to change.
- More offers will be declined – As competition increases, buybacks, counteroffers, and rival offers will increase. Other employers face the same challenges you are facing, so be ready for stiff battles in procuring tech workers.
- Employee referral schemes – Now is the time to make sure your employee referral rewards are attractive. Incentives go a long to motivating staff to act.
Doing it yourself can be a complicated and time-intensive process that could cost you more money in the long run as well. If you opt to work with a recruitment agency, make sure you work with just one agency and give them time to work the vacancy for you. Remember the process of getting passive candidates to shift will be slower and more involved.
Enigma People Solutions is an award-winning technology recruitment consultancy. We find technical leaders for the emerging and enabling technology industries. Visit our services page for more information. Visit our job search page for the latest vacancies in photonics, electronics, semiconductor, software and IoT in Scotland and the UK. Check out our blog page for the latest in the technology industry. You can get in touch with us firstname.lastname@example.org or call us on + 44 131 510 8150