Recruitment Activity Getting Flatlined: KPMG
According to a research conducted by KPMG International, the recruitment activity in both the permanent and temporary job market continues to be slow. Also, pay rates are starting to dip as well.
KPMG is a top audit and consultancy firm.
KPMG’s Report on Jobs has shown that the rate of growth has been the weakest since October last year in spite of the fact that demand for staff rose in the month of September.
The temporary or contract billings was witnessing an 11-month low. In the last 9 months, hourly pay rates also decreased slightly.
Kevin Green, who is REC Chief Executive, said in a statement that the job market, as he sees it, is starting to get flatlined. He said that it may even bring about a “double dip” in employment.
Green agreed that in spite of there being marginal growth, the firm has seen the worst figures for a whole year.
Bernard Brown, who is the partner and Head of Business Services at KPMG, said that engineering, construction and executive staff are the people who have been the most in demand in the previous months. He said that this indicated that there was recovery happening in the manufacturing and private sector.
Brown is of the opinion that this activity contrasts what is happening in the public sector where employers are ordering hiring freezes or conducting redundancy programmes.
A new research by Pricewaterhouse Coopers has shown that when a competent member of the staff is replaced, it costs the company approximately a year of the person’s salary to find a suitable replacement. Costs incurred are lost productivity and skills, training of new recruits and cost of replacement.
Resignation rates in the US is 7% while in France and Germany it is about 5%