Monday, 18 October 2010

Recruitment and Employee Relations conflict to increase in 2011

Stand by for a statistics attack!

Employers are "gearing up for the recovery by targeting recruitment in areas that will maximise growth" according to a survey by the CBI and Harvey Nash out today

(And I thought Harvey Nash were an international luxury lifestyle stores specialising in brand name merchandise with stores in London, Leeds and Riyadh. Perhaps I'm confusing them with the manufacturer of a brand of Spanish sherry that has been imported into and bottled in Bristol since 1796. Focus, editor, focus!!)

But all in the garden is not entirely rosy, as many firms are concerned about maintaining morale, as employees face another year of pay restraint.

Here's a useful bundle of statistics to keep you entertained as the morning progresses.
  • The number of businesses operating a recruitment freeze has fallen from 61% in Spring 2009 to 7% this Autumn.
  • 23% of businesses are planning targeted recruitment in areas including management, technical and sales, while 21% plan to add staff in some parts of the business and reduce numbers elsewhere.
  • Pay freezes have reduced, from 55% of employers in Spring 2009 to 14% in Autumn 2010.
  • 22% of firms are planning targeted pay rises for key staff, while 42% are planning a below-inflation award for all employees.
  • Although most firms (67%) describe the current employee relations climate as co-operative or better, many businesses are concerned that relationships will become more difficult next year.
  • In the next six months, 21% of public sector employers are planning a recruitment freeze, and 58% a pay freeze.
  • Firms are finding it harder to maintain engagement and morale. Nearly a third (32%) report high levels of engagement, while morale is not getting better, with just a third (38%) reporting high levels.
  • The majority of employers recognise they need to work harder on employee engagement, with 63% naming achieving high levels of engagement as one of their top priorities for the year ahead.
  • According to the Tribunals Service. the number of employment tribunals rose 56% to 236,100 claims in 2008/09.
  • Nearly half of employers (48%) are worried about an increase in age-related tribunal claims after the removal of the national default retirement age (DRA) of 65 in April.
  • Two thirds of employers (69%) are concerned that removing the DRA will lead to greater uncertainty around workforce planning.
  • Nearly all employers (97%) offer at least one form of flexible working, including part-time; flexi-time; term-time hours; job sharing and working from home. 
Source: Gearing up for Growth, the CBI/Harvey Nash Employment Trends Survey


  1. Business owners are forced to think about the greater good, keeping a business going through the tough times is the focus. Staff are hardly going to look around in the currant job market as it is difficult to find anything else. Having a flexible work force by increasing staff member but part time will keep you more flexible for your own customers and clients by having the staff on stand by. Employee need to realise working, even part time is, is good at the moment.

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