Fourteen per cent of firms encountered shortages when recruiting staff. This survey shows how employers and employees are embracing flexibility and that will really deliver results for the economy. But there is no room for complacency because that success could be hampered by the rise in regulations that damage competitiveness. Interestingly, our survey shows that big firms are more concerned than small firms, perhaps because they can be better informed about the changes. Consequently, the UK labour market is at something of a crossroads.
Flexibility now counts as much for organisations at it does for employees.
To improve competitiveness, organisations have to get the most from their people. This means they need to put more emphasis on enhancing skills training and on developing and rewarding people and the teams they work in. The new breed of employee wants opportunity and progression. Small and medium-size manufacturers who expected an early recovery from the economic downturn have had their hopes dashed. A quarterly survey by the Confederation of British Industry and business advisors Pannell Kerr Forster , confirms that the rate of decline is slowing down.