The light at the end of the economic tunnel has become even brighter for the UK jobs market, with the publication of recruitment firm Robert Half’s latest Professional Hiring Index. The main finding is encouraging: UK directors are planning to increase hiring and reduce redundancies by the end of the year. Plus, an increased number of bosses are planning to raise salaries. The report comes hot on the heels of a hugely positive report from KPMG and the REC earlier this week that charted growth in permanent and temporary placements, along with increased vacancies and rising salaries.

According to Robert Half, one third of senior directors plan to create jobs in the next six months, up from 24% six months ago, and only 2% anticipate employee redundancies – down by 7%. Furthermore, 39% plan to increase salaries, up from 31%, and just 7% plan to reduce them. Optimism in the business climate has also increased, with 72% of directors expressing confidence about growth, up from 64%. That signals the re-emergence of an elusive, but all-important quality, which many argue is crucial to escaping economic stagnancy.

Robert Half managing director Phil Sheridan stated: “The employment market for professional occupations continues to gain momentum, with companies hiring to fill vacated roles while also creating new ones. Many companies that may have put new initiatives or expansion plans on the backburner are again taking advantage of the stronger business outlook and are hiring permanent staff to handle key growth initiatives.”

In further comments that also echoed the KPMG report, Sheridan said: “as the job market improves, companies are finding that the pool of highly skilled talent is shrinking and the large majority is citing challenges sourcing the requisite talent and keeping them on board. While remuneration continues to be an attractive incentive, companies should also look at other valued benefits such as flexible working, tuition reimbursement and initiatives to improve work-life balance. Many companies are adopting flexible benefits packages to tailor perks to individual preferences.”

With the general outlook rosier than it has been for some time, managers would do well to use Sheridan’s words as a basis for considering the challenges ahead in retaining their best staff, and searching out the new.

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