UK IT Recruitment Market Update: Key Recruitment Trends 2024

2024 has seen the UK IT recruitment landscape evolving at a rapid pace. Our industry is witnessing a fascinating interplay between technological advancements and shifting economic dynamics, reshaping how companies approach talent acquisition. We’re seeing firsthand how these changes impact businesses and job seekers alike, making it crucial to stay ahead of the curve in this competitive market.

In this month’s newsletter, we’ll explore the current state of the UK IT recruitment market and delve into the vital recruitment trends for the rest of 2024. We’ll examine how economic growth influences hiring patterns, the role of recruitment technology in streamlining processes, and the emerging strategies defining success in the recruitment industry.

Current State of the UK IT Recruitment Market

Economic Recovery and Market Growth

We’re seeing positive signs in the UK economy, with a strong 0.6% growth in the first quarter of 2024 – the highest among G7 economies. This recovery has had a significant impact on the IT recruitment landscape. Despite recent challenges, the job market remains robust, with over 1.7 million active job adverts. This indicates that hiring activity hasn’t declined as sharply as in previous recessions.

Impact of Skills Shortages

Skills shortages continue to be a significant concern in our industry. A staggering 68% of employers report increased workload on existing staff due to these shortages. This has reduced activity or output for 49% of businesses and decreased profitability for 38%.

Salary Trends in IT Roles

The demand for top talent has driven significant salary increases across the IT sector. On average, technology salaries are now 25% higher than in 2020. For instance, a Chief Technology Officer can earn between £113,899 and £210,276 annually. We’ve observed that salary has become the primary motivator for job changes, closely followed by work flexibility. This trend underscores the importance of competitive compensation packages in attracting and retaining top IT talent.

Key Recruitment Trends for 2024

Rise of Remote and Hybrid Work

We’re seeing a significant shift in work arrangements. Only 30% of UK companies are now working fully on-site, compared to 57% before the pandemic. Over 40% of companies have moved to a hybrid model, with 91% still having employees working this way. This trend meets employee expectations, with nearly 80% reporting satisfaction with their current work model. We’ve noticed that companies are generally flexible, with 59% requiring three days or fewer of weekly office attendance.

Emphasis on Diversity and Inclusion

Diversity and inclusion remain crucial business challenges. We’ve found that 92% of HR/TA/D&I teams consider it a focus in their company. Progress is being made, as seen in the changing makeup of FTSE company boards, but it’s inconsistent. Key areas to address include overcoming bias in recruitment, addressing intersectionality, and providing safe environments for employees to raise issues.

Growing Demand for Cybersecurity Professionals

The cybersecurity skills shortage is becoming increasingly evident. In 2023, 50% of UK businesses had a skills gap in basic cybersecurity. The global talent shortage could reach 85 million workers by 2030, causing approximately $8.5 trillion in unrealised annual revenue. Specifically, four million professionals are urgently needed to plug the talent gap in the global cybersecurity industry. We’ve observed that two-thirds of organisations face additional risks due to these shortages. To address this, there is a need to focus on attracting, training, and retraining cybersecurity professionals.

Conclusion

The IT recruitment landscape in the UK is undergoing significant changes, shaped by economic recovery, evolving work models, and persistent skills shortages. These factors impact hiring practices, salary trends, and companies’ strategies to attract top talent. As we move forward, the focus on diversity and inclusion and the growing demand for cybersecurity professionals will continue to shape the recruitment scene.

To stay ahead in this dynamic environment, businesses must adapt their recruitment strategies. This means offering competitive salaries, embracing flexible work arrangements, and investing in diversity initiatives. It also addresses the cybersecurity skills gap through targeted training and development programmes. By keeping these trends in mind, companies can position themselves to attract and retain the best IT talent in an increasingly competitive market.

At Kameo Recruitment, we stay at the forefront of the industry through constant revision of market trends and discussions with employers and candidates alike. If you want expert support with your IT recruitment, contact our specialists, Daniel Cordy or Kyran Livermore.

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Upskilling – What it means to your and how we can help.

In today’s fast-paced world, businesses and individuals alike face an unprecedented rate of change. Technological advancements, market demands, and shifting work environments require a nimble and well-prepared workforce. For business owners, HR managers, and career changers, upskilling has become more than just a buzzword—it’s a vital strategy for staying competitive and thriving in the modern job market.

This month’s blog post from Kameo Recruitment will dig deep into the concept of upskilling, its benefits, practical methods, and why it’s indispensable for the future of work.

Introduction to Upskilling

Upskilling refers to teaching employees new skills to enhance their performance and capabilities within their current roles. The goal is to close skill gaps and prepare the workforce for future challenges. In today’s dynamic job market, upskilling helps businesses adapt to technological changes and fosters a culture of continuous learning.

In a rapidly evolving business landscape, learning and adapting is invaluable. Upskilling empowers employees to take on new responsibilities, improves job satisfaction, and increases overall productivity. For career changers, upskilling is a way to pivot to new industries or roles by acquiring relevant skills and knowledge.

With this understanding, let’s explore the numerous benefits that upskilling can bring to businesses and individuals alike.

BENEFITS OF UPSKILLING FOR BUSINESSES

Enhancing Productivity

When employees are equipped with new skills, they perform tasks more efficiently. Upskilling enables workers to leverage the latest tools and technologies, streamlining processes and boosting productivity. This can translate to significant cost savings and improved operational efficiency for businesses.

Furthermore, upskilled employees can fill multiple roles within the company, reducing the need for additional hires. This versatility is particularly advantageous for businesses with limited resources. By investing in employee development, companies can maximise their workforce’s potential and achieve better outcomes.

Improving Employee Retention

Employees value opportunities for growth and development. When businesses invest in upskilling programs, it demonstrates a commitment to their employees’ professional growth. This fosters loyalty and job satisfaction, reducing turnover rates and the associated recruitment and onboarding costs.

In addition, upskilling can create clear career progression paths within the organisation. Employees who see opportunities for advancement are more likely to stay with the company and contribute to its long-term success. This stability benefits the employer and the employee, creating a win-win situation.

Adapting to Technological Advancements

The rapid pace of technological innovation means that businesses must continuously adapt to remain competitive. Upskilling ensures employees stay current with industry trends and effectively use new tools and technologies. This adaptability is crucial for maintaining a competitive edge in the market.

By fostering a culture of continuous learning, businesses can stay ahead of the curve and respond proactively to changes. This proactive approach mitigates risks and opens up new opportunities for growth and innovation. In a world where change is the only constant, upskilling is vital for long-term success.

UPSKILLING TECHNIQUES FOR BUSINESSES

Mentorship Programs

Mentorship programs pair experienced employees with those looking to develop new skills. This one-on-one guidance fosters a collaborative learning environment and allows personalised skill development. Mentors can share their expertise, provide feedback, and help mentees set and achieve their learning goals.

Mentorship programs can be a cost-effective way to upskill employees for small businesses. By leveraging internal resources, companies can facilitate knowledge transfer and build a stronger, more cohesive team. Additionally, mentorship programs can enhance employee engagement and create a supportive workplace culture.

Online Learning Platforms

Online learning platforms offer a flexible and accessible way for employees to acquire new skills. Platforms like the Centre of Excellence, Udemy, and LinkedIn Learning provide various courses covering various subjects and skill levels. Employees can learn at their own pace, fitting their education into their responsibilities.

Businesses can encourage employees to use these platforms by offering incentives, such as covering course fees or providing paid learning time. This investment in employee development can yield significant returns in terms of improved performance and job satisfaction.

Professional Development Courses

Professional development courses, whether in-person or online, provide structured learning experiences for employees. These courses often focus on specific skills or knowledge, such as leadership, project management, or technical expertise. By attending these courses, employees can gain valuable insights and practical skills to apply in their roles.

Businesses can support professional development by identifying relevant courses and providing financial assistance or time off for employees to attend. This commitment to continuous learning can enhance the overall capabilities of the workforce and drive business success.

THE ROLE OF HR IN UPSKILLING

Creating a Culture of Continuous Learning

HR Managers play a crucial role in fostering a culture of continuous learning within an organisation. By promoting the value of upskilling and encouraging employees to pursue development opportunities, HR can create an environment where learning is prioritised and valued.

One effective strategy is integrating upskilling into the company’s performance management system. By setting development goals and providing regular feedback, HR can ensure that employees consistently work towards improving their skills. This approach helps embed continuous learning into the fabric of the organisation.

Implementing Upskilling Programs

HR Managers are responsible for designing and implementing upskilling programs that meet the business’s and its employees’ needs. This involves identifying skill gaps, selecting appropriate training methods, and measuring the effectiveness of the programs.

To ensure the success of upskilling initiatives, HR should collaborate with other departments to understand their specific needs and challenges. By involving stakeholders in the planning process, HR can create targeted programs that address the unique requirements of each team.

UPSKILLING FOR CAREER CHANGERS

Identifying In-Demand Skills

For individuals looking to change careers, identifying in-demand skills is the first step towards successful upskilling. Research industry trends, job postings, and professional networks to understand the currently sought-after skills. Focus on transferable skills that can be applied across different roles and industries.

Once you have identified the key skills, create a plan to develop them. This may involve taking courses, attending workshops, or gaining hands-on experience through volunteer work or apprenticeships. Proactively building these skills can increase your chances of securing a new role in your desired field.

Utilising Online Resources

As mentioned above, numerous online resources are available to help career changers upskill.

Online learning platforms often offer flexible scheduling, allowing you to balance your studies with other commitments. You can stay competitive and prepared for new opportunities by dedicating time to continuous learning.

Networking and Mentorship

Networking and mentorship are valuable tools for career changers. Connect with professionals in your desired field through LinkedIn, industry events, and professional organisations. Building relationships with experienced individuals can provide valuable insights, advice, and potential job leads.

Consider seeking out a mentor who can guide you through the transition process. A mentor can offer personalised advice, help you set realistic goals, and provide support as you develop new skills. This guidance can be instrumental in successfully navigating a career change.

FUTURE OF WORK AND UPSKILLING

Evolving Job Market

We at Kameo Recruitment know the job market is constantly evolving, driven by technological advancements, economic shifts, and changing consumer preferences. To remain competitive, businesses and individuals must be adaptable and proactive in their approach to skill development.

Upskilling is becoming increasingly important as automation and artificial intelligence reshape the workforce. By acquiring new skills and staying current with industry trends, employees can future-proof their careers and remain valuable assets to their organisations.

Necessity for Continuous Learning

In the future of work, continuous learning will be essential for success. The rapid pace of change means that skills quickly become outdated. By fostering a culture of lifelong learning, businesses can ensure that their workforce remains agile and capable of meeting new challenges.

For individuals, committing to continuous learning can open up new career opportunities and enhance job security. By staying curious and proactive in their approach to skill development, employees can adapt to changing market demands and achieve long-term success.

Leveraging Technology for Upskilling

Technology plays a critical role in facilitating upskilling efforts. Online learning platforms, virtual reality simulations, and AI-powered training tools offer innovative ways to acquire new skills and knowledge. By leveraging these technologies, businesses and individuals can enhance their learning experiences and achieve better outcomes.

Investing in technology-driven upskilling solutions can provide a competitive advantage in the marketplace. By staying ahead of the curve and adopting new learning methods, organisations can build a skilled and adaptable workforce ready to tackle future challenges.

Conclusion and Call to Action

In conclusion, upskilling is a powerful strategy for businesses and individuals to thrive in today’s dynamic job market. By investing in employee development, businesses can enhance productivity, improve retention, and adapt to technological advancements. For career changers, upskilling offers a pathway to new opportunities and success.

The future of work demands continuous learning and adaptability. By fostering a culture of lifelong learning and leveraging technology, businesses and individuals can stay ahead of the curve and achieve long-term success.

If you would like to discuss any of this further and find out how we can support you with how this will impact your workforce or career, contact our team today.

Recruiting Well During the Summer

Recruiting Well During the Summer

Do you adapt your recruitment process to the seasons?

Summer is officially here! School is almost out for summer, and across the UK, millions are gearing up for staycations and vacations alike. While we might wonder if we’ve already had our share of sunshine in dear old Britain, don’t be deceived into thinking summer’s over—because it’s not! With it comes skeleton staff, more flexible hours, office BBQs, and stocked freezers of ice cream.

As much as we want you to enjoy and create lasting memories this summer, we also want to stress the importance of a fair recruitment process during the holiday season!

So, how do you maintain transparency and recruit fairly when half the office is on beach time? How can you make sure every applicant gets a fair shot at their desired role? Here’s your ultimate playbook for mastering fair recruitment this summer. After all, fairness isn’t just about ticking boxes—it’s about building trust and attracting a diverse mix of talent.

Clear Job Descriptions (not just for summer, by the way)

Start with job descriptions that are as clear as the sunshine on a summer’s day! Outline everything from responsibilities to the must-haves like you’re writing a recipe for the perfect hire. Did you know, 82% of job seekers say that clear job descriptions improve their perception of a company? (source) So, skip the jargon and buzzwords—be crystal clear about what you need and watch those top-notch applicants roll in like waves on the beach!

Transparent Recruitment Process

Assuming a candidate will wait for you to offer interviews is not the best recruitment strategy to adopt. We’d argue that you can’t get worse than a lack of transparency! So many still don’t quite understand how important it is; therefore, transparency could be your secret weapon during the summer recruitment frenzy. Spell out the steps, set realistic timelines, and show candidates you’re as straightforward as a perfect beach day forecast. It’s how you build trust, retain candidates, and ensure everyone’s on board for the sunniest hire of the season!

Flexible Scheduling

Recognise that during the summer holiday season, candidates’ schedules can be as unpredictable as the British weather. Offer flexibility in scheduling interviews to accommodate their commitments and ensure everyone has equal access to opportunities. After all, it could be the difference between sealing the deal and starting the search all over again!

Keeping new hires engaged over the summer holiday

It’s always important to keep a new hire engaged. The period between offering the job and the candidate’s start date can be fragile and uncertain for the candidate. During the summer, this period might be longer due to holidays and skeleton staff. It’s wise to ensure you don’t bring on a new team member when you’re unable to provide them with an excellent onboarding experience. Did you know? 69% of employees are more likely to stay with a company for three years if they experience great onboarding (source).

Our top tips for maintaining engagement!

Regular communication – a simple email, text or phone call makes a difference a) it ensures the candidate is happy b) you can spot the red flags quicker, should they arise
Send welcome messages from the team they’ll be working in or for smaller companies from the entire workforce, this helps the new recruit feel part of the team from the get-go!
Can you share the employee handbook, relevant online courses, lunch and learns or reading material that will help them get excited about the new role
Virtual meet-ups or project previews – this will depend on the role they’ll be doing and/or if your business organises virtual meet-ups. Equally, you might be able to switch this out for something your business does offer.
Customised onboarding plan which includes key dates for their diary e.g., upcoming team events they’ll be part of. The people they’ll meet or learn from on their first day and include links to their LinkedIn profiles. Again, this just increases familiarity and helps the new starter feel welcome and part of the team!

By following the above, you can ensure a fair and engaging recruitment process that stands up to the challenges of the summer season.

So, will you be adapting your recruitment process for the season?

Is there a simple answer to combatting employee disengagement in the UK?

Is there a simple answer to combatting employee disengagement in the UK?

Are you disengaged at work? Or can you identify the people who are? Not only is it a pressing issue in the UK but disengaged employees are having a profound economic implication on the UK economy; in 2023 low employee engagement cost £257 billion, this figure is close to the whole budget allocated to running the entire NHS in 2022. Shocking right?! This astronomical amount underscores a critical challenge for businesses and the economy at large.

What is Employee Disengagement?

Employee Disengagement can look like many things, from decreased productivity and innovation to high turnover rates and increased absenteeism. A workforce that feels disconnected from its organisations missions and goals may feel disengaged. A combination of poor workplace culture, ineffective leadership, lack of career development opportunities and sub-standard communication channels are contributing factors to employee disengagement. The £257 billion annual loss represents a substantial drain on the economy, highlighting the urgent need for proactive measures to address this issue.

How to Combat Employee Disengagement…

Check-in on your work environment

Does your business promote open communication? Is there a good level of trust between management and employees? How well are employees supported? Employees who feel valued and respected are two fundamental components of a positive work environment. Achieving this is possible through a simple feedback loop (discussed below) and serves as a great starting point for businesses that need to address engagement levels or want to ensure their workforce remains engaged.

What budget have you assigned to leadership development?

Effective leaders drive employee engagement. When was the last time you sent your leaders on a course or offered them an opportunity for professional growth? Good leaders motivate and inspire teams; while some of these skills are innate, others can be developed. The ability to set clear expectations, provide constructive feedback, and recognise and reward achievements may come less naturally but can be significantly enhanced through learning and development opportunities. Investing in your leaders’ development ensures they have the tools to push on with a motivated and engaged workforce.

Career maps are key!

If an employee can see an opportunity to grow and advance within an organisation, they’re likely to feel engaged and motivated too! Do you have a buddy or mentor system? This is often an appointed individual, following a similar career path, who can support and motivate employees at work. Do you sit down with your employees and focus on their aspirations? What training do you offer and how ready are you to send your employees on a training course should they ask? Is there an individual learning and development budget? If not, is this something you can look at? Investing in the career development of employees demonstrates a commitment to them which in turn increases retention and improves engagement.

Enhance Employee Wellbeing

We know investing in employee wellbeing can feel like a significant cost, particularly to smaller businesses. However, there is an abundance of evidence suggesting that investing in employee wellbeing, particularly where mental health is concerned, can yield a positive return on investment. Where budgets are too tight to invest, all businesses should be actively encouraging breaks and promoting the importance of a good work-life balance. How does your business address issues related to stress and burnout? What do you offer when it comes to wellness? How are you promoting and demonstrating a good work-life balance?

Let’s circle back around…

Feedback loops are pivotal. Without a feedback loop strategy in place, how can an employer identify areas of improvement? Implement anonymous surveys, conduct focus groups, and encourage open dialogue to better understand what is influencing engagement levels within the business. From there, employers can adapt and strategise accordingly.

Reward and Recognition

We cannot stress this enough: when employees are acknowledged and rewarded for their contributions, it reinforces a culture of appreciation, motivates individuals and encourages employees to continue aiming for high performance. Rewards and recognition are simple and free (or very inexpensive if you decide to assign some budget to them). Simple verbal praise, commendations from colleagues and career advancement opportunities (including pay increases!) are a few simple, yet effective ways employers can show employees that they are both seen and valued.

In a nutshell, focusing solely on your bottom line could be costing you thousands. By building an engagement strategy that promotes and prioritises well-being, businesses can mitigate the substantial economic costs associated with low engagement levels. Even if you’re thinking, “our employees might be disengaged, but I can’t see them leaving,” remember that even if they stay, it is still in your best interest to deploy an engagement strategy. When employees are engaged, your business reaps the benefits too. If you are confident in your existing engagement strategy, consider auditing it and asking the employees who directly benefit from it. It’s as straightforward as 1+1=2. After all, no one wakes up in the morning aspiring to feel disengaged or unfulfilled. Investing in employee engagement is not just a business strategy—it’s a commitment to the wellbeing and happiness of your workforce. Can you afford not to make that investment?

5 Things You Can Do to Prevent Employees Experiencing Burnout

5 Things You Can Do to Prevent Employees Experiencing Burnout

Did you know more than 8 out of 10 employees are at risk of burnout this year, according to the 2024 Global Talent Trends report published by Mercer?

Defining Burnout

The World Health Organization (WHO) recognise burnout as a state of physical and emotional exhaustion. It can occur when you experience long-term stress, for example, working a stressful job.

Perhaps this isn’t you, so why should you care about how to prevent it? We all know stats speak for themselves and in a research report carried out by Mental Health UK it was revealed 91% of adults in the UK reported they experienced high or extreme levels of pressure or stress at some point in the past 12 months. So, if you’re in the lucky 9% the likelihood of you working with, living with or simply knowing someone who will experience burnout this year is significantly high.

What does this mean for business?

We’ll try and keep this short and to the point – believe us there is a lot to say on the matter but let’s begin here: the evidence of stress and pressure among adults in the UK underscores a critical issue that businesses cannot afford to ignore. We know it’s tempting to dismiss burnout as an individual problem; however, the impact extends far beyond the individual to affect entire organisations. To that end, we also live and breathe in a people-first world (like it or not!) and when employees are under constant pressure and stress, their productivity, creativity and overall performance suffer. This, in turn, can lead to decreased efficiency, increased absenteeism, and higher turnover rates within companies.

What can businesses do?

In today’s fast-paced and competitive business environment, organisations must recognise that the well-being of their employees is not just a “nice to have” but a strategic imperative. Companies that prioritise employee wellbeing and actively work to prevent burnout are more likely to attract and retain top talent, have a positive work culture, and ultimately achieve long-term success. By investing in programmes and initiatives aimed at reducing stress and promoting work-life balance, businesses can create an environment where employees can thrive, leading to improved performance, innovation, and overall organisational resilience.

5 things you can do to prevent employees from experiencing burnout.

Promote Frequent Rest Breaks – encouraging regular breaks isn’t about kindness – it’s about mental rejuvenation. Studies confirm that short breaks boost productivity and creativity. Businesses prioritising this culture support well-being and drive innovation. Sustainable success means working smarter, not harder.
Encourage Work-life Balance – hardly brand-new information but for those who think they have it, do you? A good work-life balance is crucial to preventing burnout, it recognises individuals’ holistic needs. Balancing work and personal life encourages well-being and resilience. Time outside work renews energy and supports meaningful connections. Prioritising work-life balance boosts job satisfaction, reduces turnover, and enhances productivity. If you answer emails outside of work hours, doom scroll through LinkedIn (need we remind you this is first and foremost a professional network?), have an unused holiday allowance at the end of the year, find yourself either considering or genuinely prioritising something work-related over your family or friends then your work-life balance is not harmonising my friend.
Promote Mental Wellness– Mental health is more than just a personal matter—it significantly impacts our workplaces and economy. In the UK, ill mental health costs a staggering £117.9 billion annually, with over £100 billion of that amount falling on England alone (source). Gone are the days of leaving our personal lives at home; our thoughts and feelings follow us into work, influencing our productivity and success.

That’s why Mental Health Awareness is crucial in the workplace. Normalising conversations around mental health is the first step. Encourage openness and provide resources like counselling services and mental health hotlines. Flexible work arrangements can ease stress, while a supportive culture of empathy and understanding is crucial to well-being. Workshops on stress management and mindfulness empower employees to prioritise their mental health. By investing in mental wellness, we create environments where employees feel valued, supported, and able to thrive.

Empower Employees – This one is achievable for all businesses – and the benefits are two-fold while it is key to preventing burnout it also comes free or at minimal cost to a business.
When employees feel empowered, they have a sense of ownership over their work and are more motivated to succeed. Two simple, yet effective ways to empower your employees: show them trust and give them your time.
Recognise & Reward Effort (give credit where credit is due) – acknowledging people for a job well done and celebrating both small and large wins alike. This includes praising individuals for tasks or responsibilities that are essential to their role. By offering recognition, we affirm the value of their contributions, making employees feel seen, appreciated, and motivated to continue their efforts. Therefore, reducing the chance of burnout, decreased productivity and so on.

While implementing all of them may not be feasible, simply being aware of burnout, its causes, and how employers can prevent it is a crucial first step toward creating a healthier work environment which ultimately reduces the risk of burnout at work.

And, for those stat lovers among us here’s a little stat set for you to soak up (over your lunchbreak 😉)

87% of employees who take daily lunch breaks show increased job satisfaction (source).
55% of employees want to work for a company that actively supports their mental health – this percentage has doubled in the last 10 years (source).
People between the ages of 24 to 44 are twice as likely to prioritise work-life balance over salary (source).
96% of employees believe showing empathy is an important way to advance employee retention (source).
Only 22% of managers strongly agree that their companies provide them with the tools and understanding of how to recognise colleagues effectively. (source).
82% of employees are happier when recognised at work (source).

If you’re still asking why is understanding, recognising, and doing more to prevent burnout important? Simply, when recruitment budgets are tightening or being wiped out entirely, and filling jobs isn’t as easy as it was five years ago looking after your teams has never been more important.

Had enough of hearing from us but still intrigued by the topic? Nobody says it better than Mental Health UK.

Spring into Identifying the Skills Gap in Your Business!

Spring into Identifying the Skills Gap in Your Business!

Almost three-quarters (72%) of organisations say that a skills shortage has led to an increased workload for other staff, and 78% say they are experiencing reduced output and profitability as a result (source).

Two things we know so far about 2024:

Job vacancies are falling
Skills-first hiring is not embedded into the recruitment strategy of enough businesses.

Are you struggling to keep up with the ever-evolving labour market? Uncertain where to focus your recruitment efforts, or which role to hire for first?

First things first: tip or at least balance the focus on skills-first hiring. The traditional method of valuing education over skills is not doing you any favours; in 2024 skills reign supreme and those businesses who already know this have access to a wider pool of candidates, appear more attractive on paper, and are likely to see a reduction in their miss-hire rate (source: Forbes).

The Rise of the Skills Economy

In recent years, the global economy has witnessed a seismic shift towards what is often referred to as the “skills economy.” This shift is driven by rapid technological advancements, evolving job roles, and the demand for specialised expertise across industries. As a result, employers are placing greater emphasis on candidates’ practical skills and capabilities rather than their formal education.

So, our questions to you:

When was the last time you carried out a skills-gap audit?
Are your employees falling behind?
Is your business struggling to make a profit?
Have you considered how quickly the world evolves, and is your business evolving with it?

If you answered never or yes to any of these questions read on…

Conduct a Skills Assessment

This is simple, attainable, and measurable. What are the current skills of your employees? Has technology allowed for their role to adapt, grow or change for the better? And, are you making room for this advancement in their position? If most of your employees are failing to meet the requirements of their role, as outlined by your organisation’s strategic objectives, we suggest you point fewer fingers of blame and look within, now is the time to conduct surveys, interview employees, carry out market research and understand the gap between the skills they need and the skills they currently possess.

Drop in with Employees!

The world seems to be spinning a little faster these days, right?! Truth is, we’re all busy! But, if you’re a team leader, manager or similar, we encourage you to set intentional time aside to focus on employees within your team or business. Do you encourage open communication? Do you actively listen? Note the difference between listening and active listening. Through open communication managers can better understand the career aspirations of their team this may include their skill development needs, and areas where they feel they could benefit from additional training or support. Employee feedback can and will provide valuable insights into skills gaps, especially if more than one person has a similar thought or feeling.

What is the Competition Doing?

We often emphasise the importance of staying in your lane, but sometimes we forget to notice when the speed limit changes from 40 to 60 mph. Nobody likes admitting they’re on the back foot or not doing as well as their competitors, but it is worthwhile, now, and again, to compare your organisation’s skill requirements and capabilities to those of competitors and industry benchmarks. Identify areas where your organisation may be lagging e.g., are you up to date with the latest tech for your industry? Is there a significant disparity in skills?

Access Industry Trends and Future Needs

Stay informed about industry trends, technological advancements, and changes in the business environment that may impact the skills required for success in your organisation. Anticipate future skill needs and proactively address potential gaps through strategic planning. Again, just a like a social media manager must incorporate engagement into their planning time, you too will need to set time aside to focus on industry trends and the needs of your team.

Monitor Recruitment and Hiring Challenges

It’s a hard pill to swallow but people don’t leave bad companies, and whilst they don’t necessarily leave bad managers either they may leave for a better opportunity. We encourage you to pay attention to recruitment and hiring challenges, such as difficulty finding candidates with specific skills or high turnover rates in certain roles. If you’re fortunate enough to have a talent acquisition team, can they do a quarterly audit on this? If not, it is something we encourage you to pay attention to and review regularly. Ultimately, some of the hiring challenges may indicate underlying skill gaps within the organisation that need to be addressed. Do you carry out exit interviews? Do you truly understand why employees leave, where they go next and what lead them there?

How to bridge the skills gap?

Now, we’re not the type to present you with a problem without looking for the solution too! So, if you’ve read this and thought – yes, there is probably a skills gap issue in my business and/ or you’ve carried out an audit and know one exists, we can help with that too…

Develop Training Programmes: all training offered should address identified skills gaps, training can include a mix of internal and external training resources.

Roughly 86% of employees say that job training is important to them – and nearly three out of every four (74%) are willing to learn things outside of work hours to improve their job performance (source).

Take advantage of free webinars, workshops etc: anything to help your team upskill! We advise regularly logging onto Eventbrite and widening your network on LinkedIn to stay on top of the businesses who regularly hold training sessions.
Introduce mentorship and coaching: pair employees with mentor or coaches who can provide guidance, support, and feedback as they work to develop new skills.

Organisations with strong coaching culture had a 47% higher revenue per employee than those without (source).

Feedback and recognition: regularly assess the effectiveness of initiatives aimed at bridging the skills gap and adjust as needed based on feedback from stakeholders and changing market demands. In addition, regularly gathering feedback and recognising employees builds someone’s sense of value and purpose; it also reinforces positive habits and encourages more of the performance an employer wants to see.
Investment in technology: the IT and technology skills-gap is getting wider, and businesses must start leveraging technology to mitigate a lack of skilled resources.

In 2023 Forbes research found that 93% of UK businesses acknowledge an IT skills gap (source).

To summarise, in today’s dynamic business world, recognising and addressing skills gaps is crucial for staying competitive. Assess your workforce’s skills, stay updated on industry trends, and invest in training to bridge any gaps. Businesses who are open to and invest in a culture of learning and growth, can thrive in this changing world if you look toward developing a business fit and ready for 2024 and beyond!

Is your business already working on bridging the skills gap? Which of these methods have you deployed or what are you doing that is different? Let us know [email protected]!

For more Kameo updates, insights and news click here.

Navigating the Landscape of Expected Pay Awards for 2024: Strategies for Transparent Communication with Staff

Navigating the Landscape of Expected Pay Awards for 2024: Strategies for Transparent Communication with Staff

In 2024, companies are taking different paths with employee pay. Some plan big raises, others are freezing pay. With 24% aiming for 4–4.99% increases, 19% going for 2–2.99%, and 17% planning above 6%, they all have one thing in common: clear communication is vital for staff.

Understanding the makeup of these anticipated pay awards is crucial for both employers and employees alike. For businesses, it signifies a delicate balancing act between managing financial resources, retaining talent, and remaining competitive in the market. On the other hand, for employees, it directly impacts their financial well-being, morale, and perception of their value within the business.

For businesses planning substantial pay increases, it’s an opportunity to demonstrate their commitment to employee satisfaction and retention. Such businesses can leverage these planned increments as a tool for attracting top talent and rewarding high performance. However, effective communication is key to ensuring that these efforts are perceived positively by the workforce. Transparency regarding the rationale behind the pay increases, such as company performance, market trends, or employee contributions, fosters trust and reinforces a sense of fairness among employees.

However, for businesses contemplating pay freezes or a modest pay rise, the challenge lies in managing employee expectations whilst maintaining morale and engagement. In such cases, honest and empathetic communication is crucial. Employers should prepare to openly address the reasons behind these decisions, whether they stem from economic uncertainties, budget constraints, or strategic considerations. Additionally, offering alternative forms of recognition, such as non-monetary incentives, will help with employee morale. According to People Management (PM), 50% of UK workers would rather have “great relationships” at work than a 10% pay increase (source). While salary is undoubtedly crucial, employees consistently show that they also value feeling appreciated, fostering positive relationships, and ultimately experiencing job satisfaction.

Regardless of the chosen approach, effective communication with staff is essential to navigating the complexities of expected pay rises for 2024. Here are some strategies to facilitate transparent communication and foster employee understanding and engagement:

Provide Context: Clearly articulate the factors influencing the business decision regarding pay rises, such as market conditions, financial performance, and strategic objectives. This helps employees comprehend the rationale behind the chosen approach.
Seek Feedback: Encourage open dialogue with employees to understand their concerns, expectations, and suggestions regarding pay. Actively listening to their perspectives promotes a sense of inclusivity and demonstrates respect for their input.
Offer Clarity and Transparency: Be transparent about the criteria used for determining pay increases or freezes, ensuring consistency and fairness in the process. Clear communication helps alleviate uncertainty and minimises misconceptions among employees.
Empathise and Support: Acknowledge the potential impact of pay decisions on employees and express empathy towards their concerns. Offer support mechanisms, such as access to resources for financial planning or opportunities for career development, to assist employees during periods of uncertainty.
Emphasise Future Opportunities: Communicate the business’s commitment to employee growth and development, highlighting future opportunities for advancement, skill enhancement, and reward. Aim to adopt a culture of continuous learning and progression as this reinforces employee engagement and retention.

In conclusion, navigating the landscape of expected pay for 2024 requires a strategic blend of financial prudence, employee engagement, and transparent communication. By proactively addressing employee concerns, offering clarity and empathy, and emphasising opportunities for growth, businesses can effectively communicate their decisions regarding pay and embrace a culture of trust, fairness, and collaboration within the workforce.

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