According to the latest job data from APSCo, the employment market slowed significantly this summer as businesses took a break during the Olympics – but firms that were hiring stuck to interims. APSCo found there was a 4% rise in temporary placements last month compared to August 2011 – which mirrors the results of the latest Venn Index, our quarterly report on temporary and interim vacancy levels across the UK.
Hiring activity typically slows in the City during the summer months, but this year it appears that some workplaces slowed to a standstill. Many professionals seem to have heeded the Government’s suggestions, either to take time off during the games or to work from home which has had an influence on hiring – particularly within the financial centre with its close proximity to the action.
In addition, there is some uncertainty surrounding new government reforms, due to be introduced next month which may have had an impact on permanent hiring levels. The legislation will include a binding vote on pay policy designed to improve ‘transparency and accountability’ in directors’ remuneration. Under the new rules, executive pay policies should clearly set out how pay supports the strategic objectives of the company, and should include better information on how directors’ pay compares to that of the wider workforce. Until the impact of these changes is fully understood, some firms may feel it is better to wait before taking on additional staff at top level.
It’s no secret the financial services industry has had a turbulent time of late, and in the wake of recent controversies, institutions are turning to change management specialists to put in place procedures to safeguard against similar occurrences in the future. Interims are used to bridge the gap in these unpredictable times as they offer more flexibility than a permanent hire – and of course no permanent headcount cost. Here at Venn Group we understand the value and resilience of the temporary and interim market and we are not surprised by APSCo’s findings. It will be interesting to see if this trend continues as we approach the latter part of 2012.
Robert McLeod- Venn GroupRead More