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Are you ‘social recruiting’ the usual suspects?


by Hannah Stratford 16. May 2011 11:00

The way that companies recruit new talent is changing.Companies are moving with the times. Many use the search function on LinkedIn to scour networks for new talent to headhunt or just keep on a watch list.

What's wrong with this? Well, nothing actually. However, the problem is where people land jobs via their social network – simply because of who they know. The old adage it's not what you know but who you know that matters remains true. But there is an argument that social recruiting may be encouraging an old boys and girls club approach to recruitment.

It's true that sites like LinkedIn provide a great forum for jobseekers to promote themselves, for networking with peers and for discussing industry issues.

The line is crossed though where people recruiting for roles look to old friends and colleagues in their network first. Does this mean that people with extensive social networks are better at getting jobs? And conversely, are people who don't use social networks disadvantaged?

It seems that, from a corporate perspective, social recruiting should have clear guidelines. LinkedIn is undoubtedly a great, low-cost way to reach potential talent, but companies must guard against recruiting candidates based on who they know.

The recruitment process will continue to change with the evolution of technology. The job of HR

Are you ‘social recruiting’ the usual suspects?


by Hannah Stratford 16. May 2011 11:00

The way that companies recruit new talent is changing.Companies are moving with the times. Many use the search function on LinkedIn to scour networks for new talent to headhunt or just keep on a watch list.

What's wrong with this? Well, nothing actually. However, the problem is where people land jobs via their social network – simply because of who they know. The old adage it's not what you know but who you know that matters remains true. But there is an argument that social recruiting may be encouraging an old boys and girls club approach to recruitment.

It's true that sites like LinkedIn provide a great forum for jobseekers to promote themselves, for networking with peers and for discussing industry issues.

The line is crossed though where people recruiting for roles look to old friends and colleagues in their network first. Does this mean that people with extensive social networks are better at getting jobs? And conversely, are people who don't use social networks disadvantaged?

It seems that, from a corporate perspective, social recruiting should have clear guidelines. LinkedIn is undoubtedly a great, low-cost way to reach potential talent, but companies must guard against recruiting candidates based on who they know.

The recruitment process will continue to change with the evolution of technology. The job of HR

Bright outlook for private sector jobs


by Hannah Stratford 6. May 2011 11:18

ETS has conducted research among senior HR practitioners at 150 medium and large private sector companies over the last 6 months. We found that a consistently strong intention to invest in recruitment in the next quarter. This is shown in the graph below.

A report compiled by the UK's largest recruiter Reed, among other agencies, found that job opportunities are up 22% compared to last year. These statistics are genuine cause for optimism. It clearly demonstrates the continued recovery of the economy and the return to growth.

What does this mean for HR practitioners? Well certainly more hiring is on the horizon. Companies must implement effective assessment and selection processes to find the right people. It's also important to invest in engaging and developing employees. It is only by focussing on these things that companies can attract and retain their best talent, drive growth and create competitive advantage.

Public sector employees face stigma


by Hannah Stratford 7. December 2010 10:30

50% of HR professionals find job candidates with private sector backgrounds to be less attractive than those from the public sector, according to a recent ETS survey. Public sector workers seeking private sector employment are faced with challenges: their skills and capabilities may not be valued and they will compete those who are cut during the Comprehensive Spending Review.

It seems that HR professionals are concerned with the backgrounds of public sector candidates, and they’re not alone: 22% of public sector jobseekers worry that their past experience will put them at a disadvantage, according to the recent research from Hays.

The Comprehensive Spending Review redundancies will force hundreds of thousands of public sector employees to enter the job market. 85% of these job seekers are considering applying for employment in the public sector.

Private sector recruiters are reluctant to accept candidates from the public sector. 90% of employers believe that public sector experience is “not very important”, and that candidates need to better convey their skill set.

However, there is some good news. 40% of HR professionals from private sector companies believe that a candidate’s skillset determines their employability, not their sector background, according to the recent ETS survey. To be competitive in the job search, candidates must effectively convey their skills and competencies.

There seems to be a stigma attached to public sector, which both sectors need to overcome.

Underemployed and overeducated


by Hannah Stratford 10. November 2010 10:52

Even though work can be stressful, I am thankful to be employed. Many people are jobless and could be facing long-term unemployment.

One of the trends that I have recognised recently is the number of university graduates who are either seeking work, or have taken low-paid employment in sectors that don’t require a degree.

Why is this still happening? Are there not enough jobs or are there too many people without the right skills?

Young people applying for graduate schemes are typically competing with 1,000 other applicants for one spot. Now, with the Public Sector Spending Review, unemployed graduates will be up against those who have been made redundant during the cuts. Graduates who may not have the long-term experience or the right skills will have the challenge of facing an additional 500,000 to 775,000 jobseekers.

A potential “double-dip recession”, as a result of the Review, could be another obstacle for job hunters.

Ironically, the public sector is one of the few industries recruiting graduates.

One in 11 graduates are jobless six months after leaving university – the highest rate in 17 years – according to the Higher Education Careers Services Unit. Many businesses aren’t hiring (or if they are, there are few spots open).

The TUC has a bleak outlook on employment: long-term redundancy is likely to continue for people ages 18 to 24. The number of job vacancies is declining, and currently, there are five people for every one job opening.

Even though the outlook is uncertain, it is not fixed: companies may start to invest in growth strategies that will bolster their graduate schemes.

Is now the time that companies could be taking advantage of hiring highly skilled workers for less?

The good, the bad and the unknown of the public sector cuts


by Hannah Stratford 2. November 2010 12:04

60% of HR professionals agree that the Comprehensive Spending Review will have an impact on their business and over a third, according to a recent ETS survey. The Spending Review is the controversial austerity measure put forth by the coalition government, which will result in large-scale public sector redundancies.

The estimation of losses in public sector jobs fluctuates – depending on who you talk to: the CIPD estimates estimates that total number of public sector jobs losses by 2014-15 will be around 750,000, while the coalition government suggests that the losses will amount to 490,000. However, the Spending Review will add about 75,000 adult apprenticeships each year, until the end of the Review.

It seems that those who lose their jobs in the public sector will be able to shift to the private sector. Who will this bill affect the most – and who will benefit?

Some sectors will be able to recover more rapidly, such as Finance, Media and HR. However, the ETS study found all sectors will experience the reform: a quarter of business project an impact on their client base, resulting from a budget tightening and client base restructuring.

However, there is good news: all of the HR professionals surveyed by ETS – across sectors such as Finance, IT, Retail, Luxury – reveal that they will be hiring in the next quarter.

Regardless of what sector you operate in, this Review will alter previous business practices. Large-scale redundancies will impact not only jobs, but the moral of the company. Investing in measures the target employee engagement is more important now than ever before.

It is too soon to know how these changes will affect business. We’ll have to wait and see.

Justifying unequal pay


by Hannah Stratford 22. October 2010 10:13

The Equality Act came into force on 1st October. This Act is one of many forms of legislation addressing the gender pay gap. The UK has had legislation protecting against the pay gap since the 1970s, but research shows that very little has changed.

Will this Act protect against discrimination based on gender?

According to the Government Equalities Office, women are paid less than men: 21% less in hourly pay and 13% for those working full time. In Finance or IT, full-time women earn less than half of the pay of men in the same positions.

Similarly, a study published by the Equality and Human Rights Commission found some shocking patterns in unequal pay. Full-time female employees earn, on average, one fifth of the annual incentive pay (bonuses) of the men in the same sector.

There are many reasons why the pay gap - more like the abyss - in the UK persists: different career ambitions, flexible hours, childcare, job segregation, and many more. However, can these factors still justify the pay gap?

'How Fair is Britain?', the recent compilation of evidence-based discrimination in Britain, found that as Britain becomes more diverse - ethnically and religiously - new forms of inequality are emerging. Women are more likely to go to university than men by a ratio of 4:3 and are more likely to receive a first-class or upper second-class degree, but they tend to pursue courses which lead to poorer paid careers.

Hopefully, this new Act will be the catalyst for real changes in work-based inequality. However, I must pose the question: do we need more regulation, or tangible social change within the workplace?

This inequality causes me to reflect on the link between pay and motivation: can we expect women to be as engaged as their male colleagues if their work isn't valued the same?

While we all deserve the chance to fulfil our potential, we also deserve to be fairly compensated for our time.

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Public sector pessimism


by Hannah Stratford 6. August 2010 09:45

Uncertainty over job security in the public sector now far outweighs that of the private sector according to the latest CIPD survey of working life published this week. The findings are powerful because they’re based on a representative sample of the UK workforce.

40% of public sector employees now believe their organisation is planning to make redundancies, in contrast to only 10% of private sector employees.

The latest survey by the Recruitment and Employment Confederation (REC) also found increased uncertainty in hiring intentions in light of the threat of major public sector cuts. Use of short-term contingent labour is likely to be lower in the next quarter as budget cuts kick in.

“The uncertainty of the wider global economic situation and the contents of the much anticipated emergency budget have made it difficult for employers to be more positive about their hiring intentions at this stage” said Roger Tweedy, the REC’s Director of Research.

Concern and uncertainty in the public sector is hardly surprising when the Office for Budget Responsibility predicts that 600,000 jobs are expected to be lost in this area over the next six years.

In contrast to the turmoil in the public sector, our monthly pulse survey revealed that 90% of senior HR professionals in large private sector organisations say that their company intends to recruit new employees in the next quarter.

For years public sector workers have been the envy of their peers in the private sector, for the job security these public sector roles provided. Perhaps for the time being the tables are turned.

Sunny outlook for private-sector jobs


by Hannah Stratford 1. July 2010 08:28

Hiring intensions softened slightly over the second quarter after a positive start to the year, according to our monthly poll of HR Directors from larger UK companies.

Nearly 90% of firms say they plan to hire in June’s poll. What a happy contrast to the misery of 2009. Companies are reporting positive news; ETS is no exception: our orders have grown by 40% this year.

While the budget was received warmly by industry, there are some clouds on the horizon including falling public sector headcount.

Civil servants account for only 20% of the workforce – some six million people . Of the 725,000 people likely to be “culled”, according to the CIPD’s John Philpott , some will be employed by the growing private sector. Also at risk are some 20,000 roles in outsourcing and consultancy firms that support the public sector, highlighted by Flipchart Fairytale’s Rick.

For now, the sun is shining, the economy is growing and Andy Murray’s only dropped a set.

Confidence is bouncing back


by Hannah Stratford 7. May 2010 08:43

Business confidence is back. More than nine out of ten of all professional services firms (93%) are confident about their prospects over the coming year, says accounting firm BDO .

This is in line with the feedback I’m getting from senior HR figures at medium- and large-sized organisations.

For the last three months, I’ve been asking whether their organisation plans to recruit in the next quarter. The results show a consistent upward trend, rising from 85% in February to 94% in April.

94% intending to recruit in the next quarter makes a significant statement. Our poll certainly points to increasing confidence in the economy. Using an analogy from AA Milne, we are seeing the re-emergence of Tiggers – the optimists - and the retreat of Eeyores – who see the downside to everything.

The appetite for financial risk is now at its highest level since the start of 2008, according to a second survey of CFOs at UK companies.

All of this seems to point to a recovery, not just in the numbers, but most importantly in the confidence that fires the economy.

It could however all be blown off course by the indecisive political result and the Greek debt crisis.

I’d be interested to hear your views, whether you’re a Tigger or an Eeyore.