Read our September 2024 job market update: Recruitment News: Job Vacancies Are On The Rise

The recent UK election has ushered in a significant shift in the political landscape, with Sir Keir Starmer, leader of the Labour Party, becoming Prime Minister on 5 July 2024. This change in leadership brings with it a new set of policies and priorities that could have far-reaching implications for recruitment and HR practices across the country.

Understanding these potential changes is crucial for business owners and hiring professionals. Labour’s comprehensive manifesto outlines a range of employment reforms aimed at enhancing worker rights and transforming workplace regulations. As we navigate these new developments, it’s essential to consider whether the recruitment market will be candidate-driven or employer-driven.

In our blog, we will explore the possible impacts of Labour’s policies on hiring and recruitment, examine current trends in job vacancies and applications, the role of AI in job advertising and provide insights on what these changes might mean for your business. To stay informed on the latest news and developments, follow the Hiring People blog for continuous updates and expert advice.

“Learn how to grab the attention of your dream employee through human and AI combined job advertising – send or upload to us for free and we will show you how.”

Highlights And Key Takeaways:

1. Since 2022, the UK job market has experienced a notable shift, with a sharp decrease in open vacancies and a corresponding rise in application levels.
2. Labour’s policies, which favour increased worker rights and protections, could potentially strengthen the position of employees, making the market more candidate-driven.
3. The economic uncertainties and potential headcount freezes in certain sectors might counterbalance this effect, maintaining the pressure on job seekers.
4. It is likely that the job market will remain competitive, with a slight tilt towards being candidate-driven as Labour’s policies take effect.
5. Employers should prepare for a continued influx of applications and focus on refining their recruitment processes to attract and retain the best talent in this evolving landscape.

Quick Links:

• Labour’s Victory: A New Era For Employment Policies
• Market Dynamics: Candidate-Driven vs. Employer-Driven
• Key Policy Changes And Their Implications
• Sector-Specific Insights
• Trade Union Relations
• AI Job Adverts And Adapting To The New Employment Landscape

Labour’s Victory: A New Era For Employment Policies

Labour’s triumph in the recent election heralds a transformative period for employment policies in the UK. The Labour Party’s manifesto, ‘Labour’s Plan to Make Work Pay: Delivering a New Deal for Working People’, outlines several key promises to improve worker rights. These include banning zero-hours contracts, ending fire and rehire practices, and introducing a single status of ‘worker’ to simplify employment status. Additionally, Labour plans to increase statutory sick pay, provide basic employment rights from day one, and create a single age band for the Minimum Wage.

The impact of these policies on HR practices and workplace regulations could be substantial. Employers must adapt to abolishing zero-hours contracts by restructuring their workforce management strategies. Enhanced redundancy rights and protections will necessitate more careful planning and communication during layoffs and restructuring. Furthermore, introducing basic employment rights from the first day of employment will require HR departments to overhaul their onboarding processes and ensure compliance from the outset.

Overall, Labour’s proposed changes aim to create a fairer and more equitable workplace, but they will also pose challenges for employers. Businesses must stay informed and proactive in adjusting their HR policies to align with the new regulations. By doing so, they can comply with legal requirements and foster a more supportive and productive working environment.

Market Dynamics: Candidate-Driven vs. Employer-Driven

Since 2022, the UK job market has experienced a notable shift, with a sharp decrease in open vacancies and a corresponding rise in application levels. This trend has significantly impacted the dynamics between employers and job seekers, creating a more competitive environment for candidates. The question now is whether the election of a Labour government will sustain this trend or lead to a more balanced market.

Labour’s policies, which favour increased worker rights and protections, could potentially strengthen the position of employees, making the market more candidate-driven. For instance, abolishing zero-hours contracts and introducing day-one employment rights may encourage more individuals to seek stable employment, increasing the talent pool. However, the economic uncertainties and potential headcount freezes in certain sectors might counterbalance this effect, maintaining the pressure on job seekers.

Given these factors, it is likely that the job market will remain competitive, with a slight tilt towards being candidate-driven as Labour’s policies take effect. Employers should prepare for a continued influx of applications and focus on refining their recruitment processes to attract and retain the best talent in this evolving landscape.

Key Policy Changes And Their Implications

One of Labour’s most significant proposed changes is banning zero-hours contracts. This policy eliminates insecure and exploitative work arrangements, providing workers with more stable and predictable employment. For recruitment agencies and employers, this will necessitate a shift towards offering more permanent and fixed-hour contracts, potentially increasing administrative and operational costs.

Download 7 Simple Ways To Slash Recruitment Costs

Enhanced redundancy rights represent another crucial change. By providing greater protections and rights for employees facing redundancy, businesses must implement more rigorous procedures for layoffs and ensure they comply with the new standards. This could lead to more cautious and strategic workforce planning to mitigate the risk of costly redundancies.

The introduction of basic employment rights from day one is poised to transform HR policies significantly. Employers must offer statutory sick pay, parental leave, and protection from unfair dismissal from the very start of employment. This shift will necessitate comprehensive changes to onboarding processes and employment contracts, ensuring that all new hires receive their entitlements immediately.

Sector-Specific Insights

Labour’s proposed Employment Rights Bill is expected to bring additional protections for agency workers, such as day one statutory sick pay. However, the ban on zero-hours contracts and introducing day-one rights will pose challenges for recruitment agencies and umbrella companies. These businesses must adapt their engagement models and possibly face increased costs and administrative burdens.

The tech and AI job markets, particularly within the public and not-for-profit sectors, could experience varied impacts under Labour’s government. Economic factors like high inflation and weak GDP growth may lead to headcount freezes and reduced contractor spending. However, the ongoing demand for specialist Digital, Data, and Technology talent to drive cost-effective delivery could counteract these freezes, highlighting the potential for strategic recruitment in these areas.

AI is increasingly influencing recruitment processes, from CV creation to candidate screening. Labour’s stance on AI regulation remains cautious, recognising both the opportunities and challenges it presents. As AI continues to automate and enhance various job functions, the demand for AI experts is expected to grow, making it a key area of focus for both private and public sector recruitment.

If your company operates in the construction sector, we have a dedicated market update for you. Read our latest blog, Labour’s Manifesto: Why Now Is The Time For Construction Firms To Ramp Up Recruitment.

Trade Union Relations

Labour’s victory promises to enhance trade union access to workplaces and reform rules around trade union recognition. As unions play a larger role in negotiating working conditions and employee rights, this could lead to a more collaborative and empowered workforce. The improved access to trade unions may also foster a more supportive and communicative workplace environment, enhancing employee satisfaction and productivity.

Repealing the Trade Union Act 2016, the Minimum Service Levels (Strikes) Bill and other related legislation is expected to strengthen trade unions’ position. These repeals would potentially restore previous rights and protections for workers, making it easier for unions to organise and advocate for their members. For employers, this could mean a need for greater engagement and negotiation with unions to maintain harmonious industrial relations.

Overall, these changes signal a significant shift in the balance of power towards employees and their representatives. Employers must navigate this new landscape carefully, ensuring compliance with the updated regulations while fostering positive relationships with trade unions to support a productive and satisfied workforce.

AI Job Adverts And Adapting To The New Employment Landscape

As we transition into this new era under Labour’s leadership, businesses must be prepared to adapt to the changing employment landscape. Labour’s policies, aimed at enhancing worker rights and protections, will necessitate employers to proactively re-evaluate and update their HR practices. By strategically planning and making proactive adjustments, businesses can ensure compliance with the new regulations and maintain a positive and productive workplace environment. This proactive approach will make you feel in control and prepared for the changes ahead.

Employers should review their current employment contracts, HR policies, and onboarding processes. Ensuring that these documents and practices align with the new requirements, such as day-one employment rights and banning zero-hours contracts. Additionally, businesses should invest in training for HR staff to stay informed about the latest legislative changes and best practices.

AI can create a reasonable job advert, but it rarely resonates with candidates. To create an engaging and compelling job advert, it is essential to enter the right commands so the ad targets your ideal job seeker. We must ponder scenarios such as what their interests are, how we get the attention of passive job seekers, and the most commonly searched terms by job seekers in their industry.

We are here to support you in creating a job advert that truly stands out. We can show you how to get the attention of your dream employee through human and AI combined job advertising. Send or upload your job advertisement to us, and we will show you how with a free job advert review. Our goal is to guide you through the process and ensure that your job advert is not just another one in the crowd, but one that truly resonates with your ideal job seeker.

Free Human And AI Job Advert Review

To support you in navigating these changes, we offer a range of resources designed to help businesses adapt seamlessly. Our Example Job Description Library and Recruitment Resources page provides comprehensive hiring guides, recruitment templates, and interviewing resources. Furthermore, we offer a free AI and Human Job Advert Review service that checks for:

1. Typos
2. Engaging language for candidates
3. Use of inclusive language
4. Conciseness of the advert
5. Appropriate advert length
6. Readability
7. Search-ability with relevant keywords and phrases for job boards

These tools and resources are designed to help you optimise your recruitment processes and stay ahead in this evolving employment landscape. By leveraging these supports, you can be reassured that your hiring practices remain effective, inclusive, and compliant with the new regulations. Our commitment to providing these resources instils confidence in your HR practices and reassures you that you are not alone in this journey of adaptation.

For further assistance, please call Joel, Debby, or Neeta on 0330 100 2230 or contact us via email at info@hiringpeople.co.uk.