4 RECRUITMENT AND HARD TO FILL VACANCIES

Transcription

1 4 RECRUITMENT AND HARD TO FILL VACANCIES This section of the survey investigates the extent to which firms have vacancies and whether this is a source of difficulty because some are difficult to fill. INCIDENCE OF JOB VACANCIES (B1) Nearly one fifth of firms had vacancies at the time of the survey. As is evident in Table 4.1 there were significant contrasts for different groups of firm. For example, the probability of firms located in the cities of Birmingham and Coventry having vacancies was twice that typical of firms located in the more rural areas of the West Midlands. Vacancy rates are also relatively high in multi-site firms and, to a lesser extent, firms in the financial sector. Many of these contrasts are influenced by differences in the average size of businesses in the different groups. The strong relationship between the likelihood of vacancies and size of enterprises is clearly illustrated in Figure 4.1. This shows that the percentage of firms with vacancies increases with size of the workforce. This is, however, somewhat misleading since the vacancy rate, here measured by the number of vacancies as a percentage of total employment of firms in each size group, falls sharply with size of the workforce. Indeed some 44% (230 out of 523) of all vacancies at the time of the survey were registered by firms with 10 or less employees, despite the fact that these firms only accounted for 25% of all on site employment. In contrast, firms with 100 or more employees accounted for 27% of all vacancies but 47% of employment. OCCUPATIONS IN WHICH FIRMS HAD VACANCIES (B2) 232 firms reported having on site vacancies at the time of the survey in 34 occupations (3 digit SOC). The occupational group with the greatest number of firms reporting vacancies involved middle ranking jobs in administration, namely in the general, finance and secretarial fields (Figure 4.2). Comparatively large numbers of firms had vacancies in the professions with openings in the business and statistical professions (largely accountants) being particularly numerous. Among the associate professions the public sector seems especially prominent but jobs in finance and sales are also quite widely available. Employment in sales, such as sales assistants in the retail sector, appears especially important when more junior jobs are considered. Relatively few firms report vacancies in occupations at either end of the spectrum whether it be managerial, with the exception of production mangers, or elementary occupations. The latter is perhaps not surprising since relatively few survey firms offered any employment at all at this level. There were few clear links between vacancy reporting and the characteristics of firms except where the nature of their business involved special labour requirements. For example, a high proportion of firms (15%) in the financial services sector had vacancies for business and finance associate professionals. The financial sector accounted for all but one of the firms with such vacancies. Similar patterns can be discerned when firms which are partnerships are considered. Partnerships account for high proportions of firms with vacancies for legal professionals, architects, town planners and surveyors and arguably less obviously, secretarial and related occupations. SERU, University of Birmingham Page 56

2 Table 4.1 Significant contrasts in vacancy levels among firms: by selected characteristics Characteristics of firms % of firms with vacancies City (Birmingham, Coventry) 23.7 Rural (Hereford & Worcester, Shropshire) 11.3 Financial services 22.2 Business services 18.8 Private limited firms 21.5 Sole proprietorship (owner-managers only) 15.5 Multi site firms 24.0 Single site firm 15.3 All firms 19.4 SERU, University of Birmingham Page 57

3 Figure 4.1 Percentages of firms with vacancies and vacancies as a percentage of employment: firms by employment size group 75 % of firms with vacancies vacancies as % of workforce 5 % of firms with vacancies % of jobs vacant Number of employees 0 Figure 4.2 Number of firms reporting vacancies and hard to fill vacancies: by occupation (3 digit SOC) 111 Corporate Managers 112 Production Managers 113 Functional Managers 116 Managers in Distribution, Storage & Retailing 118 Health & Social Service Managers 211 Science Professionals 212 Engineering Professionals 213 Information & Communication Technology Professionals 232 Research Professionals 241 Legal Professionals 242 Business & Statistical Professionals 243 Architects, Town Planners & Surveyors 311 Science & Engineering Technicians 312 Draughts persons & Building Inspectors 342 Design Associate Professionals 351 Transport Associate Professionals 353 Business & Finance Associate Professionals 354 Sales & Related Associate Professionals 356 Public Service & Other Associate Professionals 412 Administrative Occupations: Finance 415 Administrative Occupations: General 421 Secretarial & Related Occupations 521 Metal Forming, Welding & Related Trades 523 Vehicle Trades 531 Construction Trades 611 Healthcare & Related Personal Services 711 Sales Assistants & Retail Cashiers 721 Customer Services Occupations 811 Process Operatives 821 Transport Drivers & Operatives 914 Elementary Goods Storage Occupations 921 Elementary Administrative Occupations 922 Elementary Personal Services Occupations 923 Elementary Cleaning Occupations firms with hard to fill vacancies firms with no hard to fill vacancies Number of firms SERU, University of Birmingham Page 58

4 VACANCIES THAT ARE HARD TO FILL (B3) Firms with job vacancies at the time of the survey were asked whether any were proving hard to fill. For the purpose of the survey, respondents were told to treat hard to fill as any job which it had proved necessary to readvertise. Just over 40% of the 232 firms with vacancies reported that they were finding it difficult to fill some of the positions. This proportion does not vary much by region, although Staffordshire firms seem to have more difficulty than most. There is also a tendency for a slightly smaller share of the large companies in the study to experience recruitment problems. OCCUPATIONS WHERE VACANCIES ARE HARD TO FILL (B4) Figure 4.2 distinguishes firms with vacancies that are hard to fill for different occupational groups. Generally there is a positive relationship between the numbers of firms with hard to fill vacancies and the total with vacancies which may or may not be hard to fill. Thus, the high numbers reported for Administrative and Associate Professional occupations overall are matched by apparently high counts when attention is confined to firms with recruitment problems. Aside from a general similarity in distributions, it is also evident that there are differences in detail as the proportion of firms with hard to fill vacancies varies considerably. Table 4.2 offers an insight into recruitment difficulties at the SOC major group level. The table records an overall figure of 41% for the firms that have vacancies, of which some at least are hard to fill. Compared to this the professional group looks problematic as more than half of the firms have difficulty filling vacancies. (A similar percentage for skilled trades is unreliable because of the small number of firms with vacancies for such jobs). The incidence of hard to fill vacancies is also comparatively high for the Associate Professional and Manager groups. By comparison the Administrative (group 4) and Sales (group 7) groups, which earlier were shown to include occupations with relatively high reported vacancies, seem to experience modest recruitment problems. Numbers in the remaining groups, which are mainly lower skill occupations, are small and vacancies are not difficult to fill. REASONS WHY VACANCIES HARD TO FILL (B5) The 94 firms indicating they had hard to fill vacancies were asked why they thought they firm were experiencing difficulties. The survey question was open-ended but responses were precoded. Respondents could mention as many reasons as they wished and as a result 168 were recorded. These are shown graphically in Figure 4.3. Easily the most popular explanation was that there had been insufficient applicants with the required skills. Marginally fewer than 50% of respondents had opted for this explanation. It is difficult to explore possible correlates because of the small numbers involved but the data suggests that firms in the Birmingham and Solihull LSC region or in the Business Services sector are most likely to opt for this factor. Additionally, there is a modest, albeit consistent, increase in the share of respondents citing this explanation with the size of firm. On the other hand, there is no clear association with particular occupations and it appears that skill deficiencies are relevant at all work levels. The only occupational group for which the lack of required skills is disproportionately mentioned is Architects, Town Planners & Surveyors; it seems rather less of a concern for Administrative or Sales Assistants posts. Beyond the primacy of a lack of skills when attempting to fill vacancies, there is a secondary cluster of reasons that are mentioned by approximately 20% of the respondents. These collectively emphasise the importance of small numbers of applicants, their inadequate work SERU, University of Birmingham Page 59

5 Table 4.2 Firms with hard to fill vacancies in major occupation groups: total and as % of all firms with vacancies in the group. Occupation (SOC major group) 1 Managers & senior officials No. of firms with hard to fill vacancies % of firms with hard to fill vacancies Professional occupations Associate professional & technical occupations Administrative & secretarial occupations Skilled trades occupations Personal service occupations Sales & customer service occupations Process, plant & machine operatives Elementary occupations 1 17 All firms with vacancies SERU, University of Birmingham Page 60

6 Figure 4.3 Reasons why firms had vacancies that proved difficult to fill Low number of applicants with the required skills Low number of applicants generally Low number of applicants with the required attitude, motivatation Lack of work experience the company demands Lack of qualifications the company demands Not enough people interested in doing this type of job Too much competition from other employers Remote location/poor public transport Poor career progression / lack of prospects Other Poor terms and conditions (e.g. pay) offered for post Job entails shift work/unsociable hours No particular reason Don't know Number of firms with hard to fill vacancies experience, or absence of appropriate qualifications for the job concerned. It is noticeable that reasons which might be categorized as rather negative aspects of the jobs on offer, all appear well down the list when ordered by frequency of mention. Thus, poor terms, unsociable hours, poor career prospects and remote location are rarely cited as important, at least from the employers perspective. The assessment might be different if actual or potential job applicants for these vacancies had been consulted. VIEWS ABOUT SKILLS THAT APPLICANTS LACK (B6) The firms with hard to fill vacancies were further asked which of an extensive list of skills they felt that applicants lacked. This was done with respect to each of the occupational vacancies respondents for which respondents had indicated they had recruitment problems. Although the responses have generated much detailed information, the small number of cases involved makes it difficult to draw general conclusions. However, it is possible to compile a league table based on the number of companies mentioning a skill at least once that a particular skill was absent. This helps identify skills which are generally thought essential but are inadequately present in applicants (Figure 4.4). Communication skills are the most widely reported shortcoming; it is mentioned by 37% of the firms with hard to fill vacancies. It was thought important for 16 of the 21 occupational groups considered in this study. Perhaps reassuringly, one of the few occupations for which communication skills was not mentioned as a problem was legal professionals. Customer handling skills was cited by someone-third of firms. Its general value can be gauged by the fact it was mentioned in relation to all but four of the occupational groups. Although distributed fairly uniformly, it came up more than average in relation to Professional occupations. Technical and practical skills were third most frequently cited as being absent in candidates. Although cited with respect to most occupations, its omission was of particular regret in the case of applicants for Engineering, Business and Statistical professions, Architects, Town Planners and Surveyors. SERU, University of Birmingham Page 61

7 Although the absence of most skills was mentioned in connection with the majority of occupations, some did relate quite strongly to specific areas of work. Thus, inadequate office administrative skills and IT skills were both mentioned frequently with reference to applicants for administrative and secretarial positions. The lack of team working skills came up repeatedly for professionals especially in Engineering and Business but rarely merited a mention for other occupations. Figure 4.4 The number of firms citing difficulties of obtaining the following skills from applicants for hard to fill vacancies Communication skills Customer handling skills Technical and practical skills Problem solving skills Management skills Office admin skills Any other skills Team working skills Leadership skills Literacy skills Numeracy skills General IT user skills Human Resource Skills IT professional skills Foreign language skills Don't know No particular skills difficulties Number of firms with hard to fill vacancies SERU, University of Birmingham Page 62