Professional Documents
Culture Documents
in partnership with
2011
RESOURCING AND
TALENT PLANNING
2011
CONTENTS
Foreword 2
1 Recruiting employees 7
3 Diversity 27
Conclusions 33
Acknowledgements 39
Footnotes 40
1
RESOURCING AND TALENT PLANNING
fOREwORD
Welcome to the fifteenth edition of our annual Despite continued high unemployment, many
Resourcing and Talent Planning survey report. As UK organisations continue to face difficulties
in previous years, we provide useful benchmarking in attracting professionals with the right skills
data for organisations on resourcing trends, costs and experience. Hays has observed an increasing
and turnover. This year we have included new topical tendency for organisations, regardless of size or
sections which we hope you will find useful sector, to become more rigid with regards to the
examining the employment of younger workers, the people they wish to recruit. Employers are less
length of the recruitment process, the nature of job likely to compromise than they have been in the
vacancies, relationships with recruitment partners and past and will delay recruitment until they find
the use of strengths-based approaches to recruitment. someone with exactly the right skills, qualifications
and experience. At the same time job roles are
The headlines from this years findings are that becoming increasingly niche, which only adds to the
recruitment activity remains low, yet organisations recruitment difficulties employers face today.
are experiencing recruitment difficulties in spite of
more people in the labour market. The top reason This research suggests these problems look set to
for the recruitment difficulties is a lack of necessary continue and will only get worse long term due to
specialist or technical skills. the rising number of young people not in training,
education or employment, if organisations fail to
Strategies employed by some to try to fill address underlying problems. Added to this many
skills shortages include increasing their use of of the challenges that organisations have always
apprenticeships, interns and considering sponsoring faced still remain current, such as a shortage of
students through universities. Employers however professionals with specialist or technical skills and
need to think more holistically and long term when the poor image associated with certain professions.
cipd.co.uk/2011resourcingandtalentplanningsurvey
it comes to skills shortages, such as linking up with This highlights the need for UK organisations to
educational establishments to ensure the curriculum invest in designing a creative resourcing and talent
is preparing students well for the world of work and attraction strategy now more than ever before.
developing their internal talent pipelines around
skills shortage areas. Julie Waddicor
Managing Director, Hays Human Resources, the
We feature a case study in this report from the leading recruiting expert
Association of Greater Manchester Authorities
(AGMA). This real-life example helps to bring the
findings to life and provide some practical evidence
of how organisations are reconfiguring their
resourcing and talent strategies for maximum effect
in difficult times.
Claire McCartney
Adviser, Resourcing and Talent Planning
CIPD
2
2011
ABOUT US
Chartered Institute of Hays
Personnel and Development
The Chartered Institute of Personnel and Hays is the worlds leading recruiting expert in
Development (CIPD) is Europes largest HR and qualified, professional and skilled work. It employs
development professional body. As a globally over 7,000 staff in 257 offices across 30 countries. Last
recognised brand with over 135,000 members, we year Hays placed around 50,000 people in permanent
pride ourselves on supporting and developing those jobs and nearly 180,000 in temporary positions.
responsible for the management and development of
people within organisations. Hays works across 17 specialist areas, from healthcare
to telecoms, banking to construction and education
Our aim is to drive sustained organisation to IT. It operates across the private, public and not-for
performance through HR, shaping thinking, leading profit sectors.
practice and building HR capability within the
profession. Our topical research and public policy Its recruiting experts deal with 150,000 CVs every
activities set the vision, provide a voice for the month and more than 50,000 live jobs globally at any
profession and promote new and improved HR and one time. The depth and breadth of their expertise
management practices. ensures that Hays understand the impact the right
individual can have on a business and how the right
We know what good HR looks like and what HR job can transform a persons life.
professionals need to know, do and deliver at
different stages of their career, be they specialists or www.hays.co.uk
generalists, working in the UK or internationally.
RESOURCING AND TALENT PLANNING 2011
We offer:
membership
professional development including
qualifications and training
networking opportunities and world-class
events
expertise in HR capability-building and
consultancy services
topical insights and analysis
a wealth of resources and a voice for HR.
cipd.co.uk
3
RESOURCING AND TALENT PLANNING
4
2011
5
RESOURCING AND TALENT PLANNING
6
2011
1 RECRUITING EmPLOyEES
This section explores trends and developments in recruitment
strategies and activity within UK organisations during 2010. It
examines the adoption of formal resourcing strategies, changes
in the number of job vacancies organisations attempted to
fill, the extent and nature of recruitment difficulties over
the past year and the strategies employers use to overcome
these challenges. It also includes developments in graduate
recruitment, the most effective approaches for attracting
applicants and the methods used for selection. For the first
time we explore the nature of job vacancies, the length of
the recruitment process, the employment of younger workers,
changing relationships with recruitment partners and efforts to
improve the employer brand. Finally, the costs associated with
recruitment are discussed.
7
RESOURCING AND TALENT PLANNING
The number and nature of job vacancies While there is no overall change from last year
There is considerable variation in the number in the median number of vacancies organisations
of vacancies respondents organisations tried tried to fill, there has been a substantial fall in the
to fill in 2010, partly because the number of proportion of vacancies very large organisations
vacancies is strongly related to organisation size (5,000+ UK employees) attempted to fill, from
(Table 2). Overall, the median number of vacancies
2
a median of 550 in 2009 to 200 in 2010 (800 in
has fallen from 30 in 2008 to 20 over the past two 2008). The reduction in vacancies in very large
years as the recession affected increasing numbers organisations is striking in the private and public
of organisations (Table 2). sectors, but particularly in the latter, where
the median number of vacancies organisations
attempted to fill in 2010 was less than a third than
in 2009. This reflects the sluggish growth in the
private sector and, in particular, the significant
cuts in public sector budgets.
Table 2: Median number of vacancies respondents tried to fill, by size of organisation and sector
*The categories for number of permanent staff employed in the UK differed slightly in the 2009 survey (250 or fewer; 251500,
5011,000, 1,0015,000, 5,00110,000, 10,001+). 2009 categories have been combined where appropriate and otherwise matched with
cipd.co.uk/2011resourcingandtalentplanningsurvey
8
2011
Overall, nearly three-quarters (73%) of permanent Organisations are divided in their use of temporary
vacancies were filled with external candidates. contracts. More than a quarter (28%) have
Larger organisations, with a wide range of employed more people on temporary contracts
talent to choose from, are more likely to recruit in 2010 compared with the previous year, while
internally than smaller organisations.3 Public sector a similar proportion (27%) have employed fewer
organisations, particularly those with more than people on temporary contracts (45% remain
1,000 UK employees, are more likely to recruit the same). Manufacturing and production
internally than the private sector (Table 3). 4
organisations are most likely to have increased
their use of temporary contracts and the public
services the least, perhaps reflecting their reduced
recruitment generally (Figure 1).5
figure 1: Use of temporary contracts, by sector in 2010, compared with the previous year (%)
Public services 31 32 37
Base: 610
9
RESOURCING AND TALENT PLANNING
Sector-specific experience is an essential One in six organisations (17%) report they are
requirement of candidates in three-fifths (60%) of employing more 1624-year-olds compared with
organisations overall. While our figures suggest one year ago; this compares with less than one
it is less commonly required in the public sector in eight (12%) who are employing fewer young
(48% compared with 59% of the voluntary, people (72% are employing the same number). The
community and not-for-profit sector and 63% employment of younger workers has reduced most
of the private sector),6 there are also substantial in the public sector, where one in four reports a
differences within sectors. For example, specific decrease compared with one in ten who reports an
sector experience is essential for the majority increase (Table 4).7 This is likely to reflect a general
of organisations operating in the chemical, reduction in recruitment in this sector.
construction or mining industries and professional
services, but not for those in general manufacturing Overall, one-quarter of organisations expect the
or retail and wholesale. Similarly, within the public abolition of the Default Retirement Age will mean
sector it is deemed particularly essential for health they recruit fewer people; however, the figure
and education organisations but less so for those in rises to nearly half of public sector organisations.
central or local government. It does not appear, however, that the abolition of
the Default Retirement Age will have a particular
Employing younger workers impact on the recruitment of young people, with
Figures from the Office for National Statistics only one in ten organisations reporting it will result
show that while total unemployment fell during in fewer 1624-year-olds being recruited (Table 4).
the three months to February 2011, youth
unemployment rose to a record level of almost 1
million, equating to one in five economically active
1624-year-olds out of work. Moreover, concerns
have been raised as to whether high youth
unemployment will be further compounded by the
abolition of the Default Retirement Age later this
year and the increase in university tuition fees. This
year we included new questions in the survey to
explore these issues.
cipd.co.uk/2011resourcingandtalentplanningsurvey
10
2011
Sponsoring students
through university
10 20 8 12 1 RESOURCING AND TALENT PLANNING 2011
Base: 615
Sector
Manufacturing and production 35 35 23 24
Private sector services 29 37 24 27
Voluntary, community and not-for-profit 6 18 5 7
Public services 26 33 23 24
Base: 614 (2011); 472 (2010); 752 (2009)
11
RESOURCING AND TALENT PLANNING
Number of
UK employees
9
Fewer than 50
17
cipd.co.uk/2011resourcingandtalentplanningsurvey
16
50249
21
29
250999
39
42
1,0004,999
47
61
More than 5,000
62
0 10 20 30 40 50 60 70 80
Percentage
2011 2010
12
2011
The private sector, particularly manufacturing and collaboration between industry and academic
production organisations, are most likely to have institutions and more vocational training in order
difficulties filling vacancies (Table 7).13 Table 8 to meet organisations skill requirements.
shows that over half of organisations in this sector
have difficulty filling technical vacancies and this Higher pay expectations than the organisation
may reflect specific skills shortages in the UK. The could offer and lack of experience are the next
most difficult category of staff to recruit in other most frequently cited causes of recruitment
sectors is managers and professionals/specialists, problems (46% and 40% respectively). Interestingly,
as was the case last year. In general, there is little these are less of an issue in the public sector,
change in the categories of vacancies that are most perhaps because public sector applicants have
difficult to recruit for compared with last year. different expectations of pay or because some pay
scales are set at a national level. Lack of experience
As would be expected, given the cuts to may be less of an issue than the necessary skills or
public sector budgets, one in ten public sector qualifications required in many public sector roles.
organisations report they did not have any
vacancies to fill, twice as many as last year. There is The proportion reporting their recruitment
little change in this regard in the other sectors. problems are due to potential candidates
reluctance to move in the current economic climate
Table 9 shows the reasons respondents cite for their has decreased from just over a quarter in 2010 to
recruitment difficulties. The findings are similar 19% this year. Economic growth, albeit slow, is
to previous years. Lack of necessary specialist or likely to be responsible for this reduction but the
technical skills remains by far the most frequently hangover of the recession is highlighted as one in
cited cause of difficulties, reported by nearly five organisations still blame the economic climate
three-quarters of respondents (2011: 72%; 2010: for their recruitment problems. Despite high
67%; 2009: 73%; 2008: 70%). This is particularly unemployment, 15% of respondents report they
an issue for the manufacturing and production have experienced problems due to no applicants. In
sector and the public services sector, where there line with last years findings, this is particularly an
is a particularly high demand for such skills. Lack issue for the public sector (22%), which is also more
of formal qualifications is far less of an issue. likely to report the image of their sector/occupation
These findings support arguments for greater is a problem (22%).
Table 7: Organisations experiencing difficulties recruiting for one or more category of vacancy, by
organisation size (% of those that have had vacancies to fill)
Voluntary,
Manufacturing community
and Private sector and
All 2011 production services Public services not-for-profit
Difficulty filling one or
75 88 77 66 62
more vacancies
No difficulties experienced 25 12 23 34 38
Base: 561
13
RESOURCING AND TALENT PLANNING
Lack of experience 40 42 43 27 41 36
Reluctance to move in
current economic climate
19 24 18 17 15 26
Lack of interpersonal
skills
16 9 19 10 20 12
No applicants 15 9 16 22 20 15
Image of sector/
occupation/organisation
13 7 12 22 11 12
Relocation difficulties 9 19 6 10 7 8
Lack of formal
qualifications
7 7 7 5 7 4
14
2011
Table 10: Work undertaken over last year to improve employer brand (%)
Voluntary,
RESOURCING AND TALENT PLANNING 2011
community
All Private Public and
2011 sector services not-for-profit
Employee surveys 39 39 38 43
Developing online careers site 30 33 23 29
Introducing/extending flexible working/
homeworking
24 20 39 29
Placement students 23 21 19 35
Graduate careers fairs 15 17 11 8
Working with charities 14 16 8 6
Corporate sponsorship 11 13 2 8
Introducing sabbaticals 3 4 1 5
Other 7 6 6 10
No action taken to improve employer brand 27 28 29 22
Base: 601
15
RESOURCING AND TALENT PLANNING
Table 11: Most effective methods for attracting applications, by industry sector (%)
Sector 2011 Number of UK employees 2011
community and
and production
Manufacturing
Public services
not-for-profit
Private sector
1,0004,999
More than
Voluntary,
250999
All 2010
All 2011
services
50249
5,000
149
Own corporate website 63 59 44 57 77 66 42 55 57 77 79
Recruitment agencies 60 54 77 62 22 30 39 59 66 51 41
Local newspaper advertisements 36 32 38 23 41 51 28 35 35 29 29
Employee referral scheme 35 29 33 38 5 14 20 33 27 32 29
Commercial job boards 33 27 33 29 14 29 21 27 25 42 26
Specialist journals/trade press 31 27 24 23 30 43 26 23 32 32 24
Encourage speculative applications/word
24 25 30 29 9 23 27 31 23 19 19
of mouth
Jobcentre Plus 23 25 24 24 22 34 16 29 21 25 32
Professional networking (such as
14 16 11 23 5 9 28 13 13 18 17
LinkedIn)
Search consultants 22 15 24 17 5 4 14 11 17 18 15
Links with schools/colleges/universities 18 13 16 13 9 17 12 13 11 18 15
Apprenticeships 12 11 19 9 13 9 10 10 11 12 17
National newspaper advertisements 16 11 4 6 23 29 10 9 15 10 15
Secondments 11 11 7 8 21 12 2 9 13 11 19
Links with other local organisations
7 13 5 7 9 6 5 9 11 8
making redundancies*
Alumni (previous employees) 5 5 6 7 2 1 7 2 6 11 3
Social networking sites (such as
3 4 4 5 3 4 3 2 2 8 12
Facebook)
Local Employment Partnership (LEP) 6 3 1 4 2 5 1 2 3 4 9
Other 5 5 2 3 12 6 8 3 4 4 5
Base: 604 (2011); 464 (2010)
cipd.co.uk/2011resourcingandtalentplanningsurvey
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2011
Table 12: Changes in attitudes to and relationships with recruitment partners over the past 12 months (%)
Voluntary,
community
All Private Public and
2011 sector services not-for-profit
Not changed 36 34 40 39
Reduced use of recruitment partners 32 34 32 26
Formed a closer business partnership with
19 23 8 12
RESOURCING AND TALENT PLANNING 2011
them
Consider them an unnecessary expense 12 11 13 16
Consider them an unaffordable expense 11 10 11 22
Consider them integral to attracting top
talent
9 11 2 4
17
RESOURCING AND TALENT PLANNING
Recruitment costs
Most of those who use a strengths-based approach Last year we noted an increase in the proportion
to recruitment are neutral about how easy it is to of organisations that calculate their recruitment
administer in practice, regardless of sector or size. costs (2010: 65%; 2009: 53%; 2008: 51%). This year,
Nearly a third (32%) find it easy or very easy and the proportion is back in line with previous years
only one in ten (11%) find it difficult. (52%). The increase last year may have been due
to sampling differences or a consequence of an
Over three-quarters of those who use a strengths- increased focus on costs during the recession that
based approach to recruitment believe it has not continued.
brings benefits in terms of increased individual
performance (78%). Two-thirds believe it improves Four-fifths (79%) of organisations that calculate
retention (67%) and increases engagement (63%). recruitment costs provided cost estimates per
Two-fifths (39%) report it results in greater diversity hire. There is considerable variance in the amount
of skills in the workplace. organisations spend (at least partly due to our
18
2011
findings that organisations include different costs Table 14: Criteria included in cost per hire
in their calculations, see Table 14). In general calculations (%)
the median figures (Table 15) are lower than last
Size number of employees in UK %
year for both senior manager/directors and other
Advertising costs 81
employees.
Agency/search costs 75
Employee referrals 35
In order to explore the validity of estimates, this
Travel expenses 30
year we also asked respondents to indicate how
accurate their cost estimates were. Half (51%) of Relocation expenses 17
estimates for costs of recruiting senior managers/ Fixed costs of resourcing team 24
directors were accurate to plus or minus 10% and Opportunity costs of hiring
24
managers' time
83% to plus or minus 20%. Two-fifths of estimates
Other 3
for other employees were accurate to plus or minus
10% and 74% to plus or minus 20%. Table 16 Don't know 4
Base: 299
shows the median figures for estimates that were
believed to be accurate to up to plus or minus 20%.
Table 15: Estimated total costs (advertising costs, agency or search fees) per hire ()
Table 16: Median total costs (advertising costs, agency or search fees) per hire for estimates accurate to
plus or minus 20% ()
Voluntary,
community
Manufacturing
Median 2011 and Private Public and not-for-
Occupational group production sector services profit
Senior managers/directors 7,500 8,000 9,000 5,000 3,500
Base: 150
19
RESOURCING AND TALENT PLANNING
The impact of the economic climate on Changes in resourcing and talent practices in
resourcing 2011 compared with 2010 reflect a stronger
cipd.co.uk/2011resourcingandtalentplanningsurvey
Overall, half of organisations report that the focus on costs and reductions in budgets (Figure
economic climate has had a negative impact on 3). Two-thirds plan to develop more talent in
their organisations resourcing budgets for 201112 house (compared with one-third in 2010) and
(Table 17). This year, however, it is the public more organisations plan to reduce reliance on
sector that is most severely hit, with four-fifths recruitment agencies and external consultants for
(82%) reporting their resourcing budgets will be resourcing and development. The proportion of
reduced (up from 59% last year). In contrast, fewer organisations planning to focus more on retaining
private and not-for-profit sector organisations rather than recruiting talent has increased to 51%
face reductions this year compared with last, in 2011 from 28% in 2010.
although more are still reducing their budgets than
increasing them.
20
2011
Changes in recruitment practices are also recruitment freeze. The situation is also somewhat
anticipated. More organisations plan to make use brighter for many private sector organisations,
of new media/technology to recruit, which may with 15% reporting they will be implementing a
be a cost-cutting strategy but can also improve recruitment freeze in 2011 compared with 26%
the efficiency and effectiveness of the recruitment in 2010. Nevertheless, the economic recovery
process. On a positive note more organisations plan remains slow for many, with 29% of private
to invest more time and effort in the quality of sector organisations and 66% of public sector
candidates they hire and will be taking actions to organisations reporting they will be reducing the
improve ways of identifying quality candidates. number of new recruits they hire in 2011, similar
proportions to 2010. Inevitably more public than
Public sector organisations are more than twice private sector organisations report they will be
as likely to be implementing a recruitment freeze reducing their headcount in 2011 and losing key
in 2011 (46% compared with 22% overall). talent (33% compared with 9% in the private
Nevertheless, this is an improvement on 2010, when sector) and redeploying people into new roles (66%
58% of public sector organisations implemented a compared with 37% in the private sector).
Table 17: Impact of the current economic climate on organisations resourcing budgets (%)
Increased 8 7 11 4 1 5 4 5
Don't know 7 3 8 5 3 5
Base: 615 (2011); 475 (2010)
21
RESOURCING AND TALENT PLANNING
figure 3: Resourcing and talent practices implemented in 2011 and 2010 (% of respondents)
66
Developing more talent in-house 36
59
Continuing to recruit key talent/niche areas 46
51
Focusing more on retaining rather than recruiting talent 28
47
Reducing reliance on recruitment agencies 36
46
Use of new media/technology to recruit 28
Investing more time and effort in the quality 45
of candidates we hire 26
44
Redeploying people into new roles 30
35
Reducing the number of new recruits we hire 35
Taking actions to improve ways of 35
identifying quality candidates 15
Increasing the number of interim/contract 29
staff recruited 23
Reducing our use of external consultants 28
for resourcing and development 19
24
22
Implementing a recruitment freeze 30
22
18
13
12
Offering sabbaticals, career breaks, additional holidays 10
Reducing employees' working hours 12
to avoid making people redundant 10
8
Reducing graduate recruitment 8
6
cipd.co.uk/2011resourcingandtalentplanningsurvey
Base: 582
22
2011
Views on the employment market and 55% of private services organisations agree
In little change to last year, three-quarters of that competition for talent is even greater now,
organisations report they have noticed an increase compared with 39% of the public sector and 34%
in the number of unsuitable applicants as they have of not-for-profits.21 In contrast, the public sector
fewer roles to fill (Figure 4). Far fewer (34%) report and not-for-profits are more likely to agree they
that there are too many suitable candidates to have too many suitable candidates to choose
choose from and, despite high unemployment over from (61% and 47% respectively compared with
the past two years, more than half (52%) believe that 23% of manufacturing and production and 27%
competition for talent is even greater as the pool of of private sector services).22
available talent to hire has fallen sharply (2010: 41%;
2009: 20%). For many organisations there appears a Three-fifths (62%) of respondents agree that the
clear mismatch between the skills they require and demand for temporary and contract workers will
those available in the labour market. increase as employers will be reluctant to take
on permanent staff during uncertain times, while
Competition for talent appears to be particularly 44% agree that part-time workers will become
keen in the private sector. Two-thirds (64%) of more appealing to employers who are looking to
manufacturing and production organisations cut costs.
44
Part-time workers will become more appealing
RESOURCING AND TALENT PLANNING 2011
45
to employers who are looking to cut costs. 52
34
With fewer roles to fill there are now too
32
many suitable candidates to choose between.*
23
The abolition of the Default Retirement Age
will mean we recruit fewer people.*
19
Employers will look to make older workers over the
22
age of 65 redundant before their younger workers.
27
0 10 20 30 40 50 60 70 80
Percentage of respondents
2011 2010 2009
23
*item added 2010/2011
RESOURCING AND TALENT PLANNING
More than half of respondents (55%) across Implications for talent management
all sectors believe that employers will use the The value of effective talent management has
economic downturn as an opportunity to get rid of not been lost in the recent attention on reducing
poor performers and bring about culture change. costs. Two-fifths (41%) of organisations report
While high, this shows a downward trend on the that the current economic situation has led
past two years (2010: 63%; 2009: 72% agree or to an increased focus on talent management
strongly agree), perhaps reflecting a slowing in (43% in 2010) and only 4% that it has led to a
the number of redundancies. Similarly there is decreased focus (7% in 2010) with no significant
a gradual downward trend in the proportion of differences across sectors. Unsurprisingly, however,
respondents who express concern that employers the public sector are about twice as likely this
are acting too hastily in making people redundant year to report they have reduced their overall
and as a result they will lose too many employees talent management spend due to the downturn
with valuable knowledge and skills or that compared with other sectors (Table 18).24
employers will look to make older workers over the
age of 65 redundant before their younger workers. The proportion of organisations that report
the economic downturn has had an impact on
Nearly a quarter (23%) of respondents believe approaches to reward across the business has
that the abolition of the Default Retirement Age slightly reduced compared with last year (54%
will mean they recruit fewer people (48% in the compared with 61% in 2010). As last year, it
public sector). 23
appears that organisations across all sectors
are being more selective in who they reward. A
smaller proportion of organisations report their
approach to reward for individuals identified as
talent has been affected by the downturn (42%)
than report their approach to reward across the
business has been affected (54%).
Table 18: Has your overall talent management spend been reduced due to the economic downturn? (%)
Voluntary,
cipd.co.uk/2011resourcingandtalentplanningsurvey
24
2011
The Association of Greater Manchester Authorities (AGMA) represents the ten local authorities in
Greater Manchester and works in partnership with a wider group of associate councils and public
sector organisations. AGMA chief executives and council leaders work together on a range of key
strategic and policy issues which impact on Greater Manchester, including resourcing strategies
and recruitment and retention issues.
The AGMA initiative in cost reduction in the area of resourcing has been described as a truly
pioneering example of collaboration between a number of local authorities and is already
delivering against a range of objectives.
The initial aim was to make a significant saving on the 56 million annual cost of external
media advertising reported in 200809 and to create a more efficient and effective recruitment
system. A shared portal was commissioned to offer a front-end website (www.yourcounciljobs.
co.uk) with a back-office e-recruitment system, which would give a standardised, shared-service
approach for job applicants across councils. Some of the benefits for applicants include the ability
to go to one place to register their interest, to be able to look in specific categories for jobs
of particular relevance to them, to be able to amend an existing application form in order to
apply for a further post and to receive email alerts when new jobs relevant to their interests are
posted. In addition, communications to job-seekers are now standardised for every council.
This approach has seen real benefits across each of the local authorities; workflows are now
standardised as every HR team runs identical systems and there is consistency in reporting within
all councils, enabling them to benchmark their processes more clearly. The councils use this
benchmarking data to make additional improvements and efficiencies.
Jayne Whitehead, AGMA Category Procurement Manager, has project-managed the initiative
with managers represented from each participating authority and describes the process as one
of true collaboration, with 100% commitment from all the councils involved. The benefits RESOURCING AND TALENT PLANNING 2011
are clear; annual media costs are dramatically reduced to approximately 250,000 across ten
partner organisations and there has been a reduction in time-to-hire of 13 days. This has had
the knock-on effect of reducing expenditure on agency staff. The average cost of a recruitment
advertisement per role was previously 974.00; it is now 152.00. There have also been benefits
outside the original intention, including doubling the number of online applications for council
posts, with administrative cost savings in HR of approximately 250,000 across the consortium.
More than 61,000 registered users are now on the system and the councils are successfully filling
their own talent pools of prospective job-seekers. Overall, the project team is now celebrating a
1.7 million reduction in recruitment expenditure over the past 12 months.
(continued)
25
RESOURCING AND TALENT PLANNING
There were some challenges in the implementation of this new way of working. All the councils
had to be convinced about the benefits of the changes. With the implementation of a new IT
system having its own set of challenges, the project has taken 12 months to introduce, longer
than first anticipated. Implementing the changes during a period of radical restructuring in all
councils also proved particularly challenging. However, Jayne describes how both the need to
make efficiencies and feedback from job-seekers meant that we had to find a different way of
doing things. Jayne also recognises how the neutrality of her own role (each council pays a tenth
of her salary) has been essential in ensuring that the project has been fair to all its participants,
offering a centralised shared resource to manage the project.
The project is now set to develop yet further with the aim of becoming entirely self-funding
within the next year by accepting advertising from other organisations. Two new websites are
planned for recruitment into schools and social care jobs, bringing even less reliance on media
and agencies. AGMA will also be further building its own talent pool.
Jayne describes the initiative as a true example of what you can do if you collaborate across
authorities. Not only the separate councils but also diverse teams and functions including HR, IT,
procurement, communications and marketing have worked together to deliver this innovative
and inspiring project.
26
2011
3 DIVERSITy
This section examines organisations approaches to diversity,
including the use of formal diversity strategies and the
methods used to address diversity issues.
Just over half of organisations report they have with just under two-thirds of not-for-profit
a formal diversity strategy, showing little change organisations and just two-fifths of private sector
over the past four years (2011: 52%; 2010: 55%; companies (Table 19).25 Diversity strategies are also
2009: 60%; 2008: 55%). Consistent with previous more common in larger organisations (regardless
years findings, most public sector organisations of sector).26
(90%) have a formal diversity strategy, compared
Table 19: Does your organisation have a formal diversity strategy? (%)
Sector
Private sector 41 50 8
Public services 90 9 1
Voluntary, community and not-for-profit 63 33 4 RESOURCING AND TALENT PLANNING 2011
Number of UK employees
Fewer than 50 45 50 5
50249 43 51 6
250999 48 44 7
1,0004,999 65 31 4
More than 5,000 80 9 11
Base: 613
27
RESOURCING AND TALENT PLANNING
As was the case last year, over three-quarters Traditionally, the public sector has tended to lead
of organisations with a formal diversity policy the way in terms of diversity practices. Again this
attempt to address diversity issues through year they are significantly more likely to address
monitoring recruitment and/or staffing diversity issues through monitoring recruitment
information to obtain data on gender, ethnicity, and/or staffing information; through providing
disability, age, and so on (Table 20). Less than recruitment documents in other formats; through
three-fifths train interviewers to understand what advertising vacancies in different sources to
diversity is about and the impact of stereotypes. attract under-represented groups; and through
Other diversity-focused initiatives are even setting recruitment targets to correct a workforce
less common; moreover, the figures indicate a imbalance. Nevertheless they are less likely than
reduction in the use of several methods compared other sectors to actively try to attract talent of all
with previous years. The pressures of the recession ages (Table 20). Moreover, our figures indicate that
may have led to a reduced focus on diversity. the reduction in the use of several diversity methods
Given the links between diversity in the workforce compared with previous years is particularly
and productivity, organisations that fail to give pronounced in the public sector. The change of
this issue the attention it requires may find government and budget reduction measures have
themselves at a disadvantage in the future. led to significant change programmes in many
public sector organisations, which may have resulted
in a reduced focus on diversity issues.
Table 20: Methods used to address diversity issues in organisations (% with formal diversity strategy)
Voluntary,
community
Private Public and not-
sector services for-profit
2011 2010 2009 2008 2011 2011 2011
survey survey survey survey (2010) (2010) (2010)
Monitoring recruitment and/or staffing
information to obtain data on gender, 78 79 84 83 70 (71) 88 (96) 88 (76)
ethnicity, disability, age, any other categories
Training interviewers to understand
what diversity is about and the impact of 57 68 68 60 53 (66) 64 (73) 57 (72)
cipd.co.uk/2011resourcingandtalentplanningsurvey
stereotypes
Actively trying to attract talent of all ages* 45 53 32 43
Operating policies that go beyond basic
legislative requirements on age, gender, race, 39 49 52 48 34 (44) 47 (63) 47 (40)
disability, sexual orientation, religion and belief
Providing recruitment documents in other
39 41 37 31 24 (22) 64 (77) 47 (52)
formats (online, large-print, audio, and so on)
Checking that any tests used are valid, reliable
and culture-free and were tested on diverse 36 42 47 34 39 (44) 35 (45) 27 (16)
norm groups
Advertising vacancies in different sources to
31 37 51 48 22 (30) 44 (53) 41 (32)
attract under-represented groups
Using specific images/words in your recruitment
29 38 42 42 25 (30) 36 (52) 33 (40)
advertising to appeal to a wider audience
Making attempts to employ the long-term
19 19 13 29
unemployed*
Setting recruitment targets to correct a
9 15 14 12 4 (8) 18 (31) 8 (16)
workforce imbalance
Base: 312 (2011); 253 (2010); 419 (2009)
*new item added in 2011
28
2011
Among organisations that are able to supply the private sector compared with last year but
turnover data, the median labour turnover rate decreased in the voluntary and public services
has decreased over the past few years (Table 21). sector. This reflects improvements in the economic
The median figure, however, hides differences outlook for the private sector and the widespread
across organisations. Slightly more organisations cuts in the public sector, which also have a direct
report their turnover has increased in 2010 impact on many not-for-profit organisations that
compared with 2009 (38%) than has decreased provide services for the public sector.
(33%), while for nearly a third (29%) it remained
the same. Smaller organisations are more likely Cost of labour turnover
to report their labour turnover has increased and While just over half of organisations calculate
larger organisations that it has decreased. 27
their recruitment costs, only 13% calculate the
cost of their labour turnover (2010: 14%). The
As in previous years, the majority of turnover (53%) majority of organisations report they do not RESOURCING AND TALENT PLANNING 2011
is still attributed to employees leaving voluntarily calculate these costs (79%), while 7% dont know
(Table 22). As the economy has improved the if they are calculated or not.
median proportion of turnover due to redundancies
has reduced. Only 12% of organisations that Nearly half (46%) of those who calculate their
provided reasons for leaving made more than ten turnover costs want to maintain their current
redundancies in the previous year compared with turnover rate, while one-fifth (38%) want to
33% in 2010, 26% in 2009 and 22% in 2008. A third reduce turnover during 2011 and 15% want to
(34%) of organisations that made redundancies increase it.
offered career transition services.
Retaining employees
While median turnover rates have reduced The steps organisations take to retain employees
across all sectors, Table 23 shows that the rate in their workforce can have a significant impact
of voluntary leavers has increased slightly in on organisational efficiency and success through
29
RESOURCING AND TALENT PLANNING
2011 2010 survey 2009 survey 2008 survey 2007 survey 2006 survey
12.5 13.5 15.7 17.3 18.1 18.3
Base: 175 (2011)
Table 22: Median labour turnover rates, by reason for leaving (%)
decreasing employee turnover, loss of talent and jobs during times of economic uncertainty and
recruitment and training costs, while having a high unemployment. Supporting this are our
positive impact on motivation, job satisfaction and findings that the public (49%) and not-for-profit
the employer brand. sectors (49%) are more likely to report they had
no difficulties in retaining staff during 2010
Only two-fifths (42%) of organisations compared with the private sector (38%).
experienced no difficulties in retaining staff
during 2010. This figure is similar to last year As in previous years, organisations most
(45%) but higher than the findings for 2008, commonly have difficulty retaining managers
when 31% reported they had no retention and professionals/specialists (Table 24). The
difficulties. These findings reflect the increased manufacturing and production sector are most
caution of employees regarding leaving their likely to report difficulties retaining technical
30
2011
staff and the private services sector that they have Improving line managers people skills and
most difficulty retaining services staff. This may learning and development opportunities are also
reflect the higher demand for these categories of most commonly rated among the top three most
employees in these sectors. effective retention methods. The effectiveness of
improving induction processes is more varied, with
While most organisations have taken one or more 22% rating it among the top three most effective
steps to address staff retention, nearly one in four methods and 12% among the top three least
organisations (23%) report that no specific retention effective methods. Views are also mixed regarding
initiatives were undertaken. This is a similar the effectiveness of improved pay. It is likely that
proportion to last year, although substantially higher employees are motivated by different factors.
than in previous years when retention difficulties Employers need to provide a healthy working
were more common due to a tighter labour market environment where employees are treated with
(Table 25). Public sector organisations are twice respect and make efforts to match their retention
as likely not to have taken any steps to address initiatives with what staff want.
retention as those in the private or not for-profit
sectors (39% compared with 20% of private sector
and 16% of not-for-profits).28
Administrative, secretarial 9 5 8 15 13 7
Senior managers/directors 7 5 8 10 6 9
Manual/craft workers 6 11 6 3 4 4
Base: 601 (2011); 451 (2010)
31
RESOURCING AND TALENT PLANNING
Improved benefits 21 8 14 19 32 36
Better promotion to employees
of the employer brand
18 10 5 15 21 16
32
2011
CONCLUSIONS
Looking forward number of vacancies on offer by organisations
In January 2010 the UK officially emerged from remained as low as in 2009 overall and continued
the longest recession since the 1930s. Economic to decrease in very large organisations, particularly
growth, however, remains sluggish and the public in the public sector.
sector has embarked on a four-year programme of
the biggest government spending cuts in decades Looking forward, private sector growth is expected
to address the fiscal deficit. to remain slow and the full impact of public
sector budget cuts is still to come. Resourcing and
In the labour market, unemployment remained talent management budgets will be further hit
high throughout 2010. Figures from the Office in 201112 and many public sector organisations
for National Statistics (ONS) show that UK will implement recruitment freezes and reduce
unemployment rose by 27,000 in the three months graduate intake and recruitment generally.
to the end of January 2011 to 2.53 million, the Resourcing and talent practices are changing to
highest since 1994. While recent months have seen reflect the stronger focus on costs and reductions
signs of improvement, there are concerns that the in budgets. Particularly in the public sector, but
slow growth in the private sector will be unable also in the private sector, trends indicate a greater
to fully compensate for the increasing job losses in focus on developing talent in-house, retaining
the public sector that will result from the budget rather than recruiting talent and reducing reliance
cuts. This is supported by the findings from the on recruitment agencies and external consultants
CIPDs spring 2011 Labour Market Outlook, which for resourcing and development.
shows the impact on the overall labour market of a
slight rise in private sector recruitment is still being Our findings do not present a positive outlook
cancelled out by large-scale public sector job losses. for the vast number of unemployed. A substantial
proportion of organisations reports that the RESOURCING AND TALENT PLANNING 2011
The findings of the CIPDs 2011 Resourcing and already low number of vacancies available to them
Talent Planning survey reflect the challenges is likely to be further affected by the abolition
of the economic environment. Organisations of the Default Retirement Age. Yet despite the
generally have increased their focus on costs. On high unemployment rate, most organisations
average, organisations spent less on filling each reported difficulties in filling vacancies, mostly due
vacancy and a fifth have reduced their resourcing to skill shortages. We have also seen an increase
budgets and talent management spend. In the in the proportion of organisations reporting
public sector the focus on costs and budget that competition for talent is even greater as the
reductions was particularly apparent. pool of available talent to hire has fallen sharply.
For many organisations there appears a clear
The end of the recession has meant fewer mismatch between the skills they require and
redundancies in 2010. Nevertheless, over a third those available in the labour market. Some are
of public sector and one-fifth of private sector concerned this will be exacerbated by the increase
organisations reduced their headcount. The in university tuition fees. Some are responding
33
RESOURCING AND TALENT PLANNING
by increasing apprenticeship schemes, internships Audit your organisations current skills and future
and sponsoring students through university. Such capabilities
schemes may be aided by the Governments recently If you havent done so already, conduct a thorough
announced 60 million commitment to help boost inventory of your organisations current skills and map
youth employment and provide extra support for those against the capabilities you are likely to need
apprenticeships and changes to vocational training in the future. Hold forecasting sessions which look at
and education. How far this will go towards meeting macro and micro trends, how these will impact your
organisations skill requirements remains to be seen. way of working and the changes that will be required
for future success.
On a positive note our findings indicate that talent
management is viewed as more, not less, important Build your talent and succession pipeline
in difficult times, although with reduced budgets, You also need to be proactively building up your
organisations will have to be innovative with talent pipelines (horizontally and vertically), so that
their approach and strategies. In order to survive you are developing people with future-fit skills and
organisations will need to make certain they focus capabilities. A silver lining from the current economic
beyond the cost-cutting required in the current climate is that more organisations are focusing on
environment to ensuring their talent strategies are developing internal talent and fully utilising the
aligned to long-term business success. skills of their existing workforce. Fresh talent is
still important but recruitment strategies should
The CIPDs Shaping the Future and Next Generation complement internal pipelines.
HR flagship projects have both explored the
important issues of sustainability. Shaping the Future Maintain a continuous focus on capability-
in particular warns against the dangers of talent building
tunnel vision taking a short-sighted view on talent Capability-building should be part of a continuous
strategies which are solely focused on the needs of process, embedded into policies and practices. Across
the here and now. our case study organisations, managers talked about the
need to embed development and skills training as part
Often organisations pay too little attention to of business as usual, rather than as a one-off activity.
identifying and developing the capabilities that
individuals will need in the long term. This implies a Develop a creative approach to skills and
leadership/talent management capability gap with capability development
cipd.co.uk/2011resourcingandtalentplanningsurvey
too much focus on the operational needs of today Even when budgets are tight, it is essential that
rather than the organisational imperatives staff get the development they need to ensure they
of tomorrow. have the capabilities for their current job role, as well
as starting to build those that the organisation will
Its never too late to start equipping your people need in the future. Our case study organisations were
with the skills and knowledge they need to meet focusing strongly on knowledge-sharing, enabling
both present and future challenges. So what practical people to learn from others across the organisation.
recommendations can we make for resourcing and
talent professionals, drawn from our Shaping the Many of you are already considering alternative
Future evidence? solutions for specialist skill development, such as
apprenticeships, internal management schemes,
summer placements and internships. It is also
important to work with universities to ensure that
graduates are developing skills and knowledge which
will help them to succeed in the workplace.
34
2011
This is the fifteenth annual CIPD Resourcing A small number of respondents took part in follow-
and Talent Planning survey (formerly known as up telephone interviews to produce mini case
the CIPDs Recruitment, Retention and Turnover studies on a selection of topics. These are presented
survey). The survey examines organisations in the coloured boxes throughout the report.
resourcing and talent planning strategies and
practices and the key challenges and issues Sample profile
they face. The survey consists of 45 questions Respondents predominantly work for private
completed through an online self-completion sector organisations, with professional services
questionnaire. being particularly well represented, but other
sectors are represented in similar proportions to
The majority of questions remain the same as last year (Table A1).
previous years, to provide useful benchmark
data on topics including recruitment practices,
difficulties and costs, selection methods, diversity
strategies, the impact of the economic climate on
resourcing and talent planning practices, labour
turnover and retention strategies. New question RESOURCING AND TALENT PLANNING 2011
areas this year examine the employment of
younger workers, the length of the recruitment
process, the nature of job vacancies, relationships
with recruitment partners and the use of
strengths-based approaches to recruitment.
35
RESOURCING AND TALENT PLANNING
Education 12 2
Health 23 4
Local government 22 4
Other public services 29 5
Non-profit organisations 78 13
Care services 9 1
Charity services 32 5
Housing association 17 3
Other voluntary 20 3
Base: 610
36
2011
Respondents reported on organisations based This report uses the standard crude wastage
across the UK. Three in ten responded for the method to calculate the rate of turnover. This
whole of the UK, while others responded for a method is calculated as follows:
particular region/country (see Table A3).
Labour turnover =
Number of leavers in a set period
Table A2: Breakdown of sample by organisation ______________________________________ x 100
size permanent employees in the UK Average number employed in the same period
%
Fewer than 10 5 (Leavers include those leaving the organisation
1049 12 by way of voluntary or involuntary severance,
50249 33 redundancies or retirements, but does not include
250999 25 internal transfers).
1,0004,999 12
More than 5,000 13 Readers should be aware that this method has
Base: 610 some shortcomings. For example, it takes no
account of the characteristics of the workforce or
the length of service of the leaver.
North-west of England 7 statistical mean where the data is normally RESOURCING AND TALENT PLANNING 2011
37
RESOURCING AND TALENT PLANNING
fURThER SOURCES Of
INfORmATION
We produce a range of free factsheets, surveys, Workforce planning
guides and research reports which are available on Our guide Workforce Planning: Right people, right
the CIPD website at cipd.co.uk/hrresources time, right skills (2010) gives advice on developing
workforce planning processes.
Read our factsheets on:
Employer Brand Diversity
Employee Turnover and Retention Two survey reports and a guide provide practical
Induction advice and information on trends:
Two reports look at talent issues in a recession/ Managing Diversity and the Business Case (2008)
difficult economic climate:
The War on Talent? Talent management under
38
2011
ACkNOwLEDGEmENTS
39
RESOURCING AND TALENT PLANNING
fOOTNOTES
1
Chi Square = 57.3, df = 5, p < 0.001, n = 604
16
Working with charities: Chi Square = 8.0, df = 2, p
2
Rho = 0.73, p < 0.001, n = 577
< 0.05, n = 599; corporate sponsorship: Chi Square
3
Rho = 0.45, p < 0.001, n = 533
= 11.6, df = 2, p < 0.01, n = 599
4
F = 25.0, df = 2, p < 0.001, n = 533
17
Chi Square = 7.6, df = 2, p < 0.05, n = 599
5
Chi Square = 18.0, df = 6, p < 0.01, n = 535
18
Table 11 also shows that this method is deemed
6
Chi Square = 7.1, df = 2, p < 0.05, n = 603
most effective by public sector organisations but
7
Chi Square = 23.0, df = 6, p < 0.01, n = 600
this effect is due to a greater proportion of
8
Chi Square = 9.1, df = 3, p < 0.05, n = 598
large public sector organisations in our
9
Chi Square = 12.9, df = 4, p < 0.05, n = 610
sample, whereas private sector organisations are
10
Rho = 0.34, p < 0.001, n = 609
more evenly distributed in size.
11
Chi square = 21.7, df = 3, p < 0.001, n = 609
19
Chi square = 10.9, df = 2, p < 0.01, n = 610
12
Chi Square = 60.9, df = 8, p < 0.001, n = 607
20
Chi Square = 27.9, df = 4, p < 0.001, n = 610
13
Chi Square = 20.8, df = 3, p < 0.001, n = 560
21
Chi Square = 25.9 df = 6, p < 0.001, n = 598
14
Size of organisation and developing online
22
Chi Square = 51.5, df = 6, p < 0.001, n = 597
15
Chi Square = 16.7, df = 2, p < 0.001, n = 599
22
Chi Square = 52.2, df = 8, p < 0.001, n = 610
22
Rho = 0.24, p < 0.001, n = 195
22
Chi Square = 16.6, df = 2, p < 0.001, n = 544
cipd.co.uk/2011resourcingandtalentplanningsurvey
40
2011
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