Three in four HR professionals expect Brexit to escalate ‘competition for talent’, reports the Chartered Institute of Personnel and Development (CIPD).
A new CIPD report highlights need for smarter hiring by UK organisations as competition for skills hits record levels.
New research has found that, as a result of the UK’s decision to leave the EU, nearly three-quarters of HR professionals (72%) expect the competition for well-qualified talent to increase, and nearly two-thirds (61%) predict further difficulty recruiting senior and skilled employees over the next three years.
The latest CIPD/Hays Resourcing and Talent Planning Survey of more than 1,000 HR professionals found that recruitment difficulties are already being reported by three quarters of HR professionals (75%), and nearly two-thirds (65%) agree that the skills needed for jobs in their organisation are changing. Professionals with leadership (58%), digital (54%) and commercial awareness skills (51%) are most likely to increase in demand over the next 12 months.
However, despite a recognition of the need for smarter, more targeted recruitment, less than a fifth (16%) say their organisation currently measures the return on investment of their recruitment activity. Similarly, over half (56%) say their organisations doesn’t calculate the cost of people leaving the business, despite labour turnover at its highest since 2007.*
Claire McCartney, Associate Research Adviser at the CIPD, the professional body for HR and people development, comments: “Today’s research highlights mounting competition for talent and the subsequent need for organisations to sharpen their focus on strategic recruitment and effective retention, to attract and maintain the skills they need in an increasingly competitive labour market. Brexit, and its impact on the labour market, should act as a stimulus for organisations to focus their attention on building a stronger, more productive workforce, by staying alert to potential changes in their skill needs and being agile in their response.
“However, they can’t effectively do this unless they are measuring, evaluating and then strengthening their recruitment and talent strategies, based on a real understanding of their existing talent profile. Even the simplest forms of measurement can be effective, such as tracking the turnover rate of new hires, seeking feedback from candidates on their experience and monitoring the performance of new recruits. This will give organisations the insight to attract, select and retain people with the best skills and potential for their business.”