Despite high unemployment in the UK, 75% of businesses are struggling to recruit the top talent they need. This could spell good news for contractors.
The Curve Group, a human resource specialist, recently published data showing that three quarters of firms are facing difficulties recruiting. However, only 10% plan to offer more money in a bid to entice applicants.
Lyndsey Simpson, a co-owner of the Group, said the figures show employers continue to face challenges in the current uncertain economic climate.
The research also discovered that 62% of the survey’s respondents said stress related absenteeism has increased over the past two years. Ms Simpson attributes this in part to the pressure caused by redundancies and headcount freezes.
Meanwhile, R3, the insolvency trade body, claims that a lot of firms are still showing signs of distress.
The UK economy did expand in the quarter to October, but with growth at only 0.5%, many companies still face tough times. Businesses will need to maintain their workloads, but permanent employees could find themselves made redundant and replaced by limited company contractors.
Frances Coulson, the president of R3, explained that the latest GDP figures contrast starkly with the reality on the ground. He expressed his concern that firms are not rebuilding their reserves and signs of distress will probably remain, even though GDP is increasing.
A lot of businesses also appear to be relying heavily on their overdraft facility, according to R3’s data. In fact 22% frequently take advantage of their maximum facility.
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