Kellie Hamlett: Skills shortage on horizon

Looking back on 2011, the recruitment market remains fluid and change seems constant.

Skill shortages are again emerging across many sectors and forecasts indicate these shortages are only going to increase as the economy regains momentum.

Competition for candidates will emerge strongly; initially these will no doubt be more prevalent in the major cities, but they will filter down to the regions making it difficult for local employers.

A recent Hays' survey on employer confidence and employment intentions for the coming year indicated positive trends, with 63 per cent indicating business activity has increased in the past 12 months and 74 per cent predicting a further increase.

Employers have indicated their intentions to increase staffing levels, especially in engineering, IT, operations, purchasing and sales sectors. This will mostly be through the recruitment of permanent, full-time staff, with employers showing less enthusiasm towards part-time and temporary staff. More than half of employers surveyed, 58 per cent, will consider employing a sponsored or qualified overseas candidate, which will become a more relevant optionin response to skill shortages.

Across all industries, salaries increased by an average 3-6 per cent, with employers indicating a similar increase at the next salary review. From employers I have dealt with recently, most would be leaning towards the conservative end.

In a competitive market, where salary is not the sole attraction, more employers are taking on board flexible employment practices, with a huge 83 per cent of businesses indicating they allow for flexible work practices, mostly through part-time employment and flexible working hours.

Employers are also offering work-from-home options and job sharing to provide flexibility. This will enable wider workforce participation and a wider pool of candidates.

Another factor for employers to consider in a tight candidate market is their employer brand. Reputation as an employer has a significant impact on the candidates you attract. Employers surveyed indicated the biggest impact on their employer brand in the marketplace was the people employed and their fit with the company vision, culture and values - so the people employed influence the brand.

Other factors noted as important included work/life balance, salary and benefits, products and services, business financial health and stability along with training.

There is, overall, confidence in the economy emerging for 2012. Employers would be wise to think ahead and plan for recruitment in the coming years and, perhaps, develop a strategy for remaining competitive in an upcoming tight candidate market where skills shortages will be a barrier for growth.

- Kellie Hamlett is the director of Talent ID recruitment agency