The ongoing boom in the service sector is causing increases in employment growth and leading to a ‘War for Talent’, according to new research. The Cranfield School of Management’s latest quarterly Recruitment Confidence Index reveals perceived differences in the economic climate between the manufacturing and service sectors have increased over the last three months. In the service sector, 57% of organisations expect an increase in employment growth in contrast to manufacturing, where only 39% expect to see employment growth. In manufacturing, one quarter of respondents believe employment will decrease in the next six months as opposed to the service sector where only one in seven expect figures to fall, according to the survey carried out with the Daily Telegraph and TMP Worldwide. UK managing director of TMP Executive Resourcing Chris Hermannsen said: ‘It’s not all bad news for manufacturing. There is a significant demand for traditional managerial roles in hi-tech manufacturing businesses. The war for talent is particularly fierce for IT professionals, top finance people and lawyers. They are being lured to e-commerce and dot.com ventures from manufacturing and the service sector.’ Expected pay increases are higher in the service sector where 26% of organisations expect pay rises to exceed four per cent in contrast to the manufacturing sector where seven per cent expect the same. Confidence is higher in the service sector, where 75% of organisations were positive and only eight per cent negative as opposed to manufacturing where 60% were positive and 15% negative. Recruitment problems for managerial and professional staff are predominant in the service sector where 28% of organisations have difficulty filling a substantial proportion of managerial and professional vacancies in comparison to 19% for manufacturing positions. Produced in partnership between the three backers, the quarterly RCI index maps patterns and expectations of managers involved in recruitment and adds a new dimension to current economic forecasting. A total of 975 UK organisations representing a cross-section of larger businesses took part. For the second year running, Accountancy Age and Nigel Lynn Associates are conducting a comprehensive salaries, benefits and careers survey to uncover the issues that affect all accountants in our changing world. Look out for questionnaires in upcoming issues and have your say.
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