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It has been a challenging few years for the recruitment sector, and it looks like things might get worse before they start getting better.

Although employment rates have largely returned to pre-pandemic levels this year, the outlook for next year looks bleaker. Rising food and energy costs have exacerbated the cost-of-living crisis, and recent government budget U-turns have steepened inflation and sent the UK headfirst into another recession.

As a result, sourcing and retaining talent is becoming increasingly complex. Recent reports suggest that the job market is experiencing a period of stagnation, with many companies forced to freeze hiring as they struggle to keep up with salary expectations.

So, how can business leaders overcome economic uncertainty and achieve growth in this landscape? The solution lies in analyzing market trends and planning ahead to ensure every skills gap is covered as we enter the new year.

Understanding job market stagnation

In recruitment, market stagnation refers to a situation where job growth slows, output plateaus, and wage increases flatten, leaving candidates demanding more than employers can offer.

Stagnation often follows a period of stunted economic growth, which we have experienced since the first coronavirus lockdown in 2020. The economy showed signs of recovery after the government eased restrictions. However, hiring activity is declining as rising costs and competition for staff cause employers to become more cautious about their hiring plans.

The most recent KPMG and REC ‘UK Report on Jobs’ survey indicated that starting salary growth slipped to an 18-month low, permanent hiring has fallen for the first time in almost two years, and temporary billings have stagnated. Hiring intentions have increased, but recent reports suggest that business confidence in the UK’s economy has turned negative due to worries over labor shortages, political disruption, and inflation.

Consequently, recruiting and retaining staff in the current economic climate is becoming more challenging. People are less likely to change jobs for the same or less than they are currently earning, with candidates that are going to market upping their salaries by as much as 30%.

Equally, in today’s turbulent market, workers may stay put rather than move in anticipation of further economic instability. So, unless hiring managers include adequate long-term budgets for staff increases at the start of the financial year, they will likely feel the sting of stagnation as we head into a new year.

As a result, employers must assess their hiring needs sooner rather than later to avoid facing a scenario where they are desperate to fill a role but lack the funding and resources to present their top candidate with an enticing job offer.

Taking a proactive recruitment approach

It is easy to grow complacent when things seem to go smoothly in the short term. But if we have learned anything from recent disruptions, it is just how quickly things can change.

Candidates still drive the job market, so companies have their work cut out to attract and retain workers. Business moves fast in the modern world, and employers must always stay one step ahead of their staffing needs.

To successfully overcome existing and upcoming recruitment challenges, hiring managers must focus on improving the most critical areas of the recruitment process.

Review benefits packages

Before embarking on a hiring drive, which can often prove expensive and time-consuming, companies must assess market trends to ensure they can make a competitive offer and fulfill regular pay rises in line with industry expectations.

The same goes for existing employees. By investing in reward schemes, training, and bonuses, hiring managers can fill skills gaps from the inside and boost retention, reducing the pressure to keep recruiting more staff.

Focus on diversity and inclusion

Diversity and inclusion policies (or lack thereof) hold great sway over today’s workforce, playing an integral role in progressive employee value propositions — the way that employers attract and engage desirable employees.

Highlighting issues and opportunities within this business area is a vital part of social responsibility for modern organizations. Plus, nurturing an inclusive, culture-focused workplace will invite interest from a wider pool of candidates, increasing the likelihood of hiring success and retention.

Enlist professional support

Meeting candidate expectations for salary, bonuses, and benefits has always been important. It is now non-negotiable, as market stagnation threatens to impact companies’ bottom lines.

Enlisting the support of a third-party recruitment team ensures someone is continuously monitoring the job market, conducting accurate budget assessments, and overseeing the entire recruitment process. With these tasks taken care of, business leaders can turn their focus from merely staying afloat to generating long-term growth amidst economic uncertainty.

By Julie Mott, managing director of Howett Thorpe.

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Sally Fletcher
December 12, 2023

I would highly recommend agilis recruitment to anyone looking for work. I was contacted a few weeks ago by Chris, who matched the skills I have to an opportunity I was unable to refuse. He was professional and knowledgeable, but also friendly and down to earth. With quick response times, he was able to answer every question I had about the role whilst selling my skills and personality to the company before I had even met them. The input form Chris throughout the process, not only made everything easier but also it took the pressure off massively. I am very grateful. Thank you.

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December 11, 2023

Chris has done a great job for me. It's most refreshing to have a recruiter that both understands the role being recruited and listens to the candidate's requirements and concerns. Top marks!

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December 2, 2023

It was great to work with Chris at Agilis to find my new role. He was always on hand to guide me through the process and make sure I was fully briefed prior to each interview. I would happily use Chris to find me a job... although I'm very happy where I am now! M-W Kelly

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October 31, 2023

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May 15, 2023

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March 29, 2023

Chris at Agilis was professional throughout the entire process and was always available to discuss any concerns. He also made sure to only flag roles that I would have a genuine interest in. Thanks again Chris!

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March 1, 2023

Chris Ellsworth was my recruiter and I was greatly impressed with the level of his assistance throughout the process from start to finish. He provided me with job role applications that were personalised to me based on what I told him I was looking for. If there was any confusion, I was always able to contact him throughout the whole process and ask for clarification which he would then, always happily give. Chris genuinely made me feel that he wanted me to get the role as much as I did and helped me with every step on the way.

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May 24, 2022

I had a great experience with Ed and Agilis. Found me a job which was the perfect fit and supported me along the way. Thank you so much for the support Ed.

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May 10, 2022

Had a great experience with Agilis Recruitment. Ed helped me find the perfect role for me in a great business. He also was very professional, cooperative but most importantly, understood what was important to me and listened to what I was looking for. Thank you Ed!

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Arthur Guide
February 25, 2022

Amazing experience with Agilis, a professional company. I have no words to thank Edward. He found a great role for me.

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Miles Jarvis
February 5, 2021

I had a great experience with Ed and Agilis. It was great to have a recruiter who understands exactly what his clients are looking for in a candidate. 5 stars!

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Damian Marchewka
February 2, 2021

Ed was great, found me a job which was the perfect fit and supported me along the way, solid agency

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Nadia Mkinsi
May 27, 2020

Laura is a lovely individual and easily the best recruiter I have ever worked with: proactive without being pushy, professional without lacking sincerity, and most importantly, she genuinely cares about her clients. She was incredibly conscientious in understanding my background and aspirations, and matched me with a role I WAS really excited about. I knew I was in good hands from our very first conversation – and I am happy to say I am a month into my new job and loving it!

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Dean Rudge
April 21, 2020

I worked with Ed when securing my role. It was a massive step in the direction I wanted to move my career in and Ed was pivotal in making that happen. I liked that right from the start he was not pushy, he listened to what I had to say and feedback and he kept in regular contact without bombarding me, using the most suitable form of messaging whether it be LinkedIn, Email or a Phone Call. I would highly recommend Ed and the guys at Agilis - keep up the great work guys!

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March 30, 2020

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March 23, 2020

Have found Agilis recruiting fantastic. Cannot rate them highly enough! Give them a go for all recruitment needs!

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Harry Ray
March 20, 2020

Laura and Ed at Agilis helped me get placed last year, and Laura was exceptionally accommodating and patient, calling me outside of hours when it was convenient for me and keeping me in the loop about everything that was going on. I'm happy with my role and feel like the guys at Agilis really put time and effort into their work -- thank you!

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Tarnea Garvey
March 20, 2020

My experience with Agilis has been great. I found Laura to be incredible helpful and always ensured she remained in contact with me throughout my job search. Thankfully I managed to find a new job through Agilis and the company has turned out to be everything that they told me the it would be! 5 Stars from me!!

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March 19, 2020

Great experience with Agilis. Following relocating to Bristol I’d found myself having conversations with a couple members of the team. I’d expressed how important it was for me to find the right role but also due to circumstance I needed the process to be accelerated as much as possible. Laura was my main point of contact and managed to find me the best role I’ve ever had in what must be record time. I couldn’t rate their work higher and will definitely be my first point of contact when looking for new opportunities. Thanks again!

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March 19, 2020