The latest Labour Market Outlook: Summer 2018 produced by CIPD in partnership with The Adecco Group reports that while overall employment remains high, recruitment difficulties and stagnating pay growth will post challenges for employers in the months ahead.
There is a continuing high demand for skills that is failing to be met by sufficient supply. Two-thirds of employers are reporting that their vacancies are proving hard to fill and the average number of applicants per vacancy has dropped across all skill levels. Despite these factors putting upward pressure on wages, organisations are limited in their ability to offer raises for all staff due to weak productivity.
Interestingly they also conclude that improvements in management capability and workforce productivity will not happen unless there is greater investment in nudging, encouraging and supporting firms, to raise their management game. CIPD research suggests that the provision of high-quality HR support to small firms at a local level embedded through key partnerships such as LEPs, chambers of commerce and local authorities has the potential to reach large numbers of employers and make a material difference to confidence and capability – and support productivity growth.