Job vacancies equal job seekers for the first time. What does it mean? | Issue #12
This week's Bulletin looks at the labour market, ways to unwind from work and a recommendation of effective communication.
Welcome to the latest edition of The Leadership Bulletin. I hope you had a very happy Easter weekend.
Let’s dive straight in to the most interesting thing I’ve seen this week…
IN FOCUS: JOB SEEKERS AND VACANCIES EQUAL FOR FIRST TIME.
The Sunday Times business section is awash with charts, so much so that they usually blend in with each other. But one chart stood out to me in last week’s Sunday Times. It showed the ratio of job vacancies to job seekers - put another way, how many jobs there are being advertised to every job seeker in the UK. After tanking during the COVID-19 pandemic, it has since soared to the highest level since modern records began: 1:1. For everybody looking for work, there is a job.
This sounds like good news. After all, job seekers want jobs and there are plenty of them about. But the picture is much more complex than it looks, especially for employers who are seeking to bring new talent in to their organisations. So what lessons might leaders and managers take from this latest development?
Firstly, employers need to recognise that their employees are in the driving seat. That is to say that existing staff, as well as potential staff, have more choice for employment than before. An example of this from a recent news report said that BA is currently paying a signing-on bonus of £1,000 to encourage people to jump ship from other airlines and join their cabin crew teams. Such ‘golden hellos’ will be taking place in many of the most staff-deprived sectors across the country; you need to start by knowing that your competitors may be inducing your team members away with welcome bonuses, better pay, or significant perks.
Secondly, recruitment is hard - and it is going to stay that way. Bringing new people into a team is always a big task, but it will be even more so in the months ahead. If you have a vacancy - especially one that is critical to your success - I recommend finding new and diverse ways to get your job vacancies in front of the right people. This might mean promotions on social media, incentivising existing members of your team with a bonus if they recommend someone who you subsequently recruit, or even doing something few managers like, using a recruitment agency. Think of the difference a superb hire makes compared to a misjudged one and factor that in to your decision-making when trying to bring the right skills and experience in to your organisation.
Thirdly, sensible employers need to make staff retention an absolute priority. That’s the logical consequence of the two observations above. After all, the best way to avoid the problem of recruitment is by keeping the good staff that you already have. I recommend that you consult widely on working practises, including where people work from and for how many days, to ensure your team are happy with how you work. If issues emerge, you could consider a shorter working week, if that would fit your team and organisation, or investigate options to enhance staff benefits (e.g., through a rewards system or offers - whatever makes people feel good about being part of your team).
The key takeaway is that we’re in one of the toughest labour markets for recruiting and holding on to great staff we have known in years. This isn’t without its advantages for employees, who find their skills more in demand and with less competition than before. But for employers it is an enormous challenge that cannot be taken too lightly.
YOUR FAVOURITE WAYS TO UNWIND.
A few weeks ago, I shared a picture of one of my favourite ways to unwind after a busy week: with fish and chips on the coast, here in the North West where I live. Several readers have since shared their favourite ways to relax. Janet from Hertfordshire said that the pandemic was a revelation for her because, for the first time, she felt able to go out for walks during the working day and have a meaningful break between the morning and the afternoon. And Ian from Manchester got in touch to promote the benefits of yoga in the evening - a new one for me, but perhaps something we should all try!
LOOKING FOR A BOOK ON…
… communicating well? Try Leadership is Language by L. David Marquet. Former US Navy captain L. David Marquet offers a framework for communicating that focuses on the right balance between deliberation and action. Well worth reading if you want to understand how to communicate in a way that maximises your team's potential and their contribution to the challenges you face. You can buy it from Blackwells by clicking here.
19 April 2022