Professional hiring index: 2015 set to be a bumper year for recruitment in Scotland

• 40% of HR directors are planning to increase hiring of permanent, professional employees in the first six months of 2015
• 95% of HR executives say it is a challenging environment to find skilled professional-level employees and 85% are concerned about losing top performers

Edinburgh, 26 January 2015 – Almost half (40%) of HR directors in Scotland plan to expand hiring, with their companies set to add new positions, in the first six months of 2015 according to the latest Professional Hiring Index¹ (‘the Index’) from Robert Half UK.  The research highlights that the labour market has firmly shifted into a post-recessionary cycle, where professionals with marketable skills hold the advantage as candidate demand outweighs supply.

The Index reveals that just 5% of HR executives believe their company will reduce their overall headcount over the period.  Thirteen per cent believe their company will freeze hiring in the next six months, by not filling vacant positions or creating new ones.   

Scottish HR directors were asked, “What are your company's hiring plans for permanent professional-level employees in the next six months? Would you say you are…”

 

Regional breakdown:

	UK-wide	London / South East	South West / Wales	Midlands	North	Scotland
Expanding – adding new positions	47%	58%	40%	50%	48%	40%
Maintaining – only filling vacated positions	42%	38%	50%	43%	38%	43%
Freezing – not filling vacated positions and not creating new ones	8%	5%	8%	5%	8%	13%

Employee retention continues to be a major concern for Scottish HR professionals as the labour market heats up. More than four in five (85%) HR executives are concerned about losing top performers to other job opportunities in the next year and this will see pressure on employers to increase salary and benefits packages in order to retain them. This is likely to drive broader wage inflation through 2015 and beyond.

Kris Flanagan, Associate Director, Scotland, Robert Half UK said:  “We are witnessing the typical post-recessionary power shift, with rapidly increasing demand for niche skills and commercial acumen affording candidates a position of strength from which to negotiate.  Scottish firms looking to expand their employee base are likely to drive up wages with the increased competition for the most sought-after professionals. Companies who want to attract skilled employees will need to look once again towards generous remuneration packages. It’s also important to “re-recruit” current staff in a bid to retain them, making sure they are aware of training programmes and opportunities to progress, as well as other factors such as flexible working to facilitate work-life balance.”

The war for talent is set to increase dramatically in the next 12 months due to an ongoing skills shortage in the Scotish labour force.  Almost all (95%) HR professionals say it is a challenging environment to identify skilled professional-level employees for their organisation, with 43% stating it is very challenging, 11 points higher than the UK average (32%).

General demand outweighing supply, in turn increasing competition between employers, is the main reason (32%) that HR executives in Scotland are finding it challenging to find skilled professionals. A lack of niche technical experts closely follows at 26%. A lack of commercial acumen and systemic problems regarding the development of suitable recruits for the job market were both cited by 21% of Scottish HR executives, highlighting that this will still pose a problem for employers in 2015.

ENDS

Notes to editors

¹ The bi-annual study was developed by Robert Half UK and is conducted by an independent research firm.  The study is based on more than 200 interviews with senior HR executives from companies across the UK, with the results segmented by size, sector and geographic location.