January Job Search Trend – are you ready?

With January approaching it’s the right time to start thinking about how best you can retain your employees and save on the time and financial burden associated with recruitment.

The start of the year sees a significant spike in job searches

If you’re in HR then it will come as no surprise that January and February are considered among the ideal times of the year for people to look for a job in the UK. Over half of UK workers see the new year as a fresh start, with 22% wanting to begin the year with a new job¹. In fact, a massive 75% of employees actively explore new opportunities during January².

Why does this trend exist?

From an employer’s perspective

There are a few key reasons why this January job search trend happens from a company’s point-of-view.

1. Companies update their budgets and sales forecasts giving HR managers a better idea of new roles to fill.
2. There's often a backlog of roles that were delayed from November and December¹.
3. People look to leave their current employers and this leads to their roles being replaced.
4. 51% of hiring managers believe the start of the year is a good time to hire, allowing new employees to begin in January and set goals for the year ahead³.
5. Many businesses look to grow their teams in March/April, coinciding with the end of the financial year⁴.
6. Losing several employees in January can be extremely disruptive to businesses, with the average cost of turnover per employee exceeding £30,000.¹⁶

From an employee’s perspective

Employees also increase their activity which sees a significant spike in job search activity:

• 75% of employees actively explore new opportunities during January².
• Company profile views on Glassdoor increase by an average of 55% during this period².
• The Christmas break gives people time to reflect on their current roles, often prompting a desire for change².

Anticipating the January trend can be helpful as you find ways to combat this and retain your staff, but before we explore this lets look at the costs a UK business might expect for their recruitment process.

What’s the cost of recruitment for businesses?

The recruitment process in the UK involves significant financial investment and time commitment. The total cost can vary widely depending on the role, industry, and recruitment method chosen, but it's clear that recruitment represents a substantial investment for UK businesses.

Financial recruitment costs

Direct Recruitment Costs: The average cost-per-hire in the UK is estimated at £3,000 ⁶. For managerial roles, this can rise to £19,000 ⁷. Some estimates suggest the total cost of recruitment can be between 6-9 months' salary for the employee, or even as much as double the salary⁸.

Advertising Costs: Job board postings can range from £89 to £250 plus VAT⁹. Using multiple platforms like LinkedIn and job sites can cost around £300-£500 per role¹⁰.

Recruitment Agency Fees: If using an agency, fees typically range from 20-30% of the new hire's annual salary⁸. For a role with a salary of £120,000, agency fees could be £24,000 to £36,000 ⁷.

Onboarding and Training: Onboarding costs average about £3,600 per employee⁶.

Time Costs

Time to Fill a Position: The average time to fill a position is around 30 days⁶.

Internal Time Spent: HR staff and managers spend significant time on the recruitment process, which is often overlooked but represents a substantial cost¹¹.

Interview Time: Time spent by teams conducting interviews is a significant but often hidden cost¹¹.

Additional Considerations

Total Employment Cost: For an employee on the average UK salary of £27,600, the true cost to the employer in the first year, including recruitment, NI, pensions, training, equipment, and annual leave, can be closer to £63,000 ¹¹.

Poor Hiring Decisions: Making a poor hiring decision can cost 1 to 5 times the salary of the intended position⁶.

Indirect Costs: Stress and mental health impacts on HR staff during recruitment can affect productivity⁶. Additionally, the time invested by current employees in training an onboarding new hires contributes to hidden expenses¹¹.

Ongoing Costs: Employers typically spend an average of £22.50 per hour on wages and an additional £10.10 on employee benefits⁶.

Given the high costs of recruitment, it’s crucial for businesses to assess whether retaining their current employees is a more effective approach, and to explore the best strategies for doing so. That’s where we, BHSF can help with some valuable suggestions.

How can you retain your staff to reduce their chances of leaving?

If you don’t want to see the new year bring an exodus of employees from your organisation, then there are several things you can do to motivate and retain productive employees.

Offer a competitive salary: people come to work to earn money. If they know they can earn more for the same work, they’re unlikely to want to stay. Ensure what you pay your staff reflects similar roles in your industry.

Promote a good work-life balance: The pandemic changed how a lot of employees valued work and things like flexibility on start/end times, remote / working from home and respecting the right to switch off really help staff feel valued.

Recognise good employees – and reward them: A Nectar HR study showed 77.9% of employees felt they would be more productive if they were recognised by their manager or organisation more frequently¹². It doesn’t have to be monetary rewards – a company-wide shout out or a personal email from the CEO often works just as well.

Provide career opportunities: Three of the top five factors that people consider when looking for a new job were around growing and developing new skills, according to a 2023 Workplace Learning Report from LinkedIn¹³. Give them a reason not to leave by providing career development opportunities in their existing role.

Engage your employees: Not only does this make them feel more included, it’s also likely to have a positive impact on your bottom line. A 2022 Gallup report noted that highly engaged teams resulted in a 23% difference in profitability¹⁴.

Support employee wellbeing: A 2023 CIPD survey found nearly three-quarters of organisations are taking steps to identify and/or reduce stress in the workplace. Methods to do so most included employee assistance programmes (EAPs)¹⁵.

Choose the right managers: There’s a popular saying, “people don’t quit a job, they quit a boss.” Empower managers who understand how to get the best out of employees by providing the right kind of guidance and support.

The start of a new year can be a challenging time for businesses, but it also presents an opportunity to focus on what truly matters, your people. By investing in employee satisfaction, fostering engagement, and creating an environment where individuals can thrive, you can reduce turnover and strengthen your organisation.

References:

1) https://topcv.co.uk/career-advice/best-time-job-search

2) https://www.v7recruitment.com/heres-why-january-is-one-of-the-best-months-for-job-hunting/

3) https://www.michaelpage.co.uk/advice/management-advice/attraction-and-recruitment/top-reasons-to-start-hiring-now-for-new-year-new-starters

4) https://www.agencycentral.co.uk/articles/seasonal-recruitment-trends/

5) https://www.peoplemanagement.co.uk/article/1875208/quarter-workforce-moving-jobs-next-six-months-research-finds

6) https://leonardbusiness.co.uk/2024/07/08/recruiting-and-onboarding-employees-what-is-the-true-cost/

7) https://www.talentinsightgroup.co.uk/insights/cost-of-recruitment

8) https://www.cloverhr.co.uk/blog/the-true-cost-of-recruitment/

9) https://www.nerdwallet.com/uk/business/cost-of-hiring-someone-uk/

10) https://www.occupop.com/blog/what-is-the-cost-of-hiring-someone-in-the-uk

11) https://payfit.com/blog/costs-of-uk-recruitment/

12) https://nectarhr.com/blog/employee-recognition-statistics

13) https://learning.linkedin.com/content/dam/me/learning/en-us/pdfs/workplace-learning-report/LinkedIn-Learning_Workplace-Learning-Report-2023-EN.pdf

14) https://www.gallup.com/workplace/236366/right-culture-not-employee-satisfaction.aspx

15) https://www.cipd.org/globalassets/media/knowledge/knowledge-hub/reports/2023-pdfs/8436-health-and-wellbeing-report-2023.pdf

16) https://www.brighthr.com/articles/culture-and-performance/staff-turnover/employee-turnover-costs/