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.