Employers shift from temp to perm hires

UK employers are shifting from temporary to permanent recruitment, according to research from finance, accounting, HR, banking and financial services staffing firm Poolia.

UK employers are shifting from temporary to permanent recruitment, according to research from finance, accounting, HR, banking and financial services staffing firm Poolia.

Research shows that January 2011 permanent placements are up by almost 99%, while short-term opportunities are down by almost 10% on January last year.

One interpretation of this change, according to Poolia, is that businesses are shifting the emphasis of their recruitment away from a reliant on short-term workers in advance of the government’s cap on migrant visas, due to be introduced in April, to protect themselves from a shortage of a skilled temporary workforce.

Poolia’s survey shows that many businesses are concerned that this policy will have a negative effect on recruitment, retention and costs. Almost half of those surveyed (45%) agreed the cap would affect their business. Only 16% think the cap is a good idea.

Many – almost one in five respondents – are concerned the cap is the government’s way of being seen to be doing something without actually impacting prospects for Britons.

Shaun Greenfield, Poolia’s managing director, says: “The message from clients seems clear: many don’t feel the proposed cap on skilled migrants will have a great deal of impact on UK jobs and it could cause employers severe problems.

“Non-EU candidates account for 40% of the people we represent and place within London. While the British and EU candidate base is of a good quality, the diverse skills and life experience that you gain from the non-EU candidate base stimulates the London talent pool.

“Although the government’s intentions appear to be good for British and EU candidates, one has to wonder whether or not the government will be able to replace the skills that London currently benefits from by employing non-EU candidates in a timely fashion.”

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