02. 03. 2023

Recruitment insights – the next 12 months for permanent staffing

Over the past few years, it’s been difficult to assess recruitment trends in the UK, with recruitment shrinking dramatically during 2020, followed by a surge of job vacancies, paired with an extreme shortage of candidates. Whilst this turbulent period seems to be coming to an end and evening out again, as some may have predicted, hiring the right talent for key roles within businesses is still proving a challenge for many. 

 As members of the REC, we have summarised their most recent Jobs Outlook, focusing on permanent recruitment for the short and medium term across the private sector. 

Business confidence increased in the last quarter, with employers being more optimistic in the economy and employers’ confidence in making hiring and investment decisions rose compared to the previous quarter. 

• The short-term outlook showed intent to employ permanent staff remaining positively robust for both medium and large organisations in the private sector.

• The medium-term outlook showed hiring intentions for permanent staff rising and were more optimistic about increasing headcount across the private sector. The REC asked a range of organisations the question: “Do you think the number of permanent workers in your organisation will increase or decrease in the next four to twelve months?” the medium-term hiring intentions for permanent staff rose and companies were positive about hiring, with mid and large sized organisation being more optimistic about increasing headcount. 

The UK is one of the largest staffing markets globally, with temporary recruitment spend being six times greater than those for permanent hiring. With the short and medium-term permanent staffing view looking promising this year, the key for businesses will be to plan ahead with their hiring strategy. Whilst we may expect greater numbers of candidates in the talent pool, there will still be some pressure on businesses to attract the talent they require due to changes in candidate perception and choice in the market. Consideration should still be given to remuneration, ability to offer work/life balance, a workplace culture which allows personal development and career growth. 
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