By most outward
signs, 2011 should usher in a period of expanding global business opportunities
along with strengthening business and consumer optimism. In many locations and
industries, the year 2010 concluded more robustly than its weak early start
might have indicated: A trend that was notable in the face of persistently high
unemployment in developed nations.

Of course, many challenges remain, particularly for the governments of mature
economies. This will be a year of difficult choices for those governments, as
austerity needs are balanced against spending commitments, and tax burdens are
weighed against economic growth and jobs initiatives. Yet, once again, emerging
market economies will most likely command the day, with their economic engines
helping to provide the much-sought-after growth opportunities. Talent demand in
those regions will reflect that rapid growth. However, corporations around the
globe will be upgrading their senior talent portfolio as ever-increasing global
competition demands top leadership with both strategic vision and tactical
expertise.

As the well publicised renaissance of the city continues, it is cheering news for all recruiters that they are once again in demand. Having spent much of 2008 and 2009 in a depressed market, 2010 saw the demand for recruiters return with a vengeance at all levels. 2011 continues to offer high calibre individuals great opportunities to move their career forward and add real value.

Value add

As businesses return to growth they retain an eagle eye on costs and profitability and no where more so than their recruitment budget. As part of this, the hiring of key talent at the right time and at the right price is fundamental to continued growth for the employer and is an excellent opportunity to offer quantifiable bottom line value.

As attraction and retention of key talent continues to hot up, a great number of HR Directors are now rueing the loss of their trusted recruitment team. Many are watching with concern the speed at which talent is being snatched up by both direct and indirect competition. The resulting effect is now being seen with heavy investment in high calibre recruitment functions to attract commercially focussed, well remunerated recruiters.

Within this field we are now seeing much greater readiness for employers to take individuals in to roles directly from agency backgrounds. Where they can demonstrate their ability to manage cost, deliver high quality hires and build upon what may be a recession damaged employer brand, many individuals have moved across.

Heading forward

As an organisation that works with and supports a number of RPO’s around their recruitment, there is an increasing necessity for recruiters to act as business advisors to their client groups. This of course has to be complimented by fulfilling their operational targets.
Clients continue to demand recruiters who retain a strong commercial focus and ensure that they can offer the highest calibre service whilst ensuring that quality is top of the agenda not compromised by cost.

So the difficult times of 2008 and 2009 are behind us, and long may that continue! Whilst our clients will continue to be demanding in their specification and requirements, there are now many more varied and interesting recruitment, resourcing and talent positions available. As a specialist in the professional and financial services arena we are delighted to be seeing the impact that so many excellent people are having in driving the UK economy back to health. Long may this continue for us all!

Companies shouldn’t boost wages to match inflation, according to the HR and finance advisor Mercer, which has told companies not to adapt base pay in response to recent economic pressures.

Mercer has said that to meet price inflation and maintain competitive engagement levels companies need to avoid salary increases and move their focus towards increases on variable pay.

For many in the UK the cost of living has increased dramatically in the last year. December 2010 figures put the Consumer Price Index (CPI) at 3.7% p.a. and the Retail Price Index (RPI) at 4.8%, and the increase in VAT from 17.5% to 20% has raised the costs of multiple necessities. Despite these figures, Mercer believes that increasing salaries will only make the problem worse.

Chris Johnson, UK Head of Human Capital business at Mercer, says: ““Inflation driven by prices can rise and fall but inflation driven by wages rarely comes down once increased, so broad-based salary increases will add to UK’s inflationary pressures. Given the limited resources available to most companies, the best solution is not to respond to inflationary pressures but ensure a focus on variable pay in 2011.”

Manufacturing figures offered some economic relief today as data showed activity growing at its fastest pace since records began 19 years ago.

The Chartered Institute of Purchasing & Supply’s (CIPS) manufacturing activity index, where a reading over 50 indicates growth, surged to a better-than-expected 62 in January from an upwardly revised 58.7 in December.

Higher demand in the UK and overseas sent the reading to its all-time high, while the figures also revealed record growth for new orders and employment.

CIPS chief executive David Noble said the data provided the “much-needed kick-start to 2011″ after last week’s shock news that the economy contracted by 0.5% in the final quarter of 2010.

But today’s survey added to inflation fears as it showed record input costs and the biggest leap in factory gate prices since August 2008.

Experts said this would heap further pressure on the Bank of England to raise interest rates as the economy is buffeted by soaring inflation.