The CIPD’s findings emphasise challenges in recruitment and retention, as employers hold back on salary increases for all bar new starters and employees with key skills.
Employment overall will continue to rise, the CIPD found in its latest Labour Market Outlook report, but employers are still faced with a skills shortage in the available talent pool.
Half of the employers surveyed by the CIPD said that applicants didn’t have the level of skills they would need in the job.
Almost a quarter are hiring more apprentices, and 19% hiring from outside the UK to try to access more skilled candidates.
With three in five employers saying that at least some vacancies are hard to fill, it’s little surprise that salary increases will predominantly go to new starters and to those with crucial skills.
Pay expectations in the private sector have fallen from 2.5% to 2%.
Gerwyn Davies, senior labour market adviser at the CIPD, said, “The majority of UK workers are long overdue a meaningful pay rise. However, many workers will remain disappointed with their pay packets until there are significant and sustained improvements to productivity.”
Despite some recruitment issues, roles can’t always be filled just by widening the net.
Alex Fleming, country head and president of staffing at the Adecco Group UK and Ireland, pointed out that “candidates with professional qualifications are those that the report highlights as the toughest to find, and these aren’t roles where relaxing the requirements and selecting the best fit is always possible.”