Jobs growth driven by customers and IT

Citation

(1999), "Jobs growth driven by customers and IT", Leadership & Organization Development Journal, Vol. 20 No. 4. https://doi.org/10.1108/lodj.1999.02220dab.004

Jobs growth driven by customers and IT

Keywords: Labour market, Skills shortage, Flexibility, Surveys

Business leaders say jobs in customer services, IT, sales and marketing will lead employment growth in the UK, this year.

However, growth has cooled considerably from last year, according to the seventh annual survey of UK Corporate Employment Strategies and Trends – published by the Institute of Management (IM) and Manpower PLC – which tracks key employment issues such as skills, flexible working, restructuring and the changing demand for jobs.

The types of jobs in which employers expect increases are broadly similar to last year, but the level of growth is down. Thirty one per cent of executives say IT jobs will grow this year, compared with 74 per cent reporting an increase last year. Thirty four per cent anticipate increased demand for employees in customer services, down from 57 per cent reporting increases last year. Twenty eight per cent expect growth in sales jobs and 26 per cent in marketing jobs, compared to 49 per cent and 51 per cent reporting growth in sales and marketing last year.

The jobs that are growing are those that require a range of specific skills. The research shows clerical, administrative and unskilled manual jobs continue to be squeezed while growth focuses on skilled manual, customer service and management positions. Employers seek employees with the right mix of key transferable skills, which they say include the ability to manage customer relationships, communication, team working, problem solving and reasoning.

Skills shortages remain a major concern for businesses, with 58 per cent of executives saying skills gaps are a business critical issue for their organisations. Finding people who are sufficiently innovative is a problem for 56 per cent of business leaders, followed by commercial awareness (52 per cent), entrepreneurship (51 per cent), problem solving skills (44 per cent) and the ability to manage customer relationships (41 per cent). In response to the skills challenge, 66 per cent of executives reported spending, on average, five per cent of their overall staff costs on training and developing their people last year.

Restructuring remains an important feature of UK corporate culture, with 42 per cent of organisations saying they restructured during 1998. Executives say meeting customer needs was the primary motivator for restructuring, followed by improved productivity and profitability. In reality, 62 per cent of executives say restructuring led to increased productivity, 61 per cent say it improved customer care and 51 per cent say it increased profitability. In contrast, 43 per cent of business leaders report no impact or a decline in profitability following restructuring.

Six in ten executives say their organisations employ people on flexible contracts. However, flexible working is no longer just the domain of secretarial and administrative staff. While almost two thirds (65 per cent) say they use flexible contracts for clerical and secretarial staff, over a third (34 per cent) now say they employ managers on flexible contracts. The main reasons given for using flexible working are meeting greater customer demand, helping employees balance work and home lives and improving employee morale and motivation.

Part-time and flexi-time working are now established features of the corporate landscape. But newer forms of flexible working such as annual hours contracts and key-time working – used to cover seasonal and peak time demand, particularly in the retail sector – are now increasingly popular.

Mary Chapman, director general of the Institute of Management, commented: ‘‘This year’s employment market looks set to be cooler than last year, resulting in tougher competition for jobs. Having the right skills will be vital in the race for jobs and business growth. Where growth will occur, is in the areas that require well-developed IT and customer focused skills. Learning is the key to earning and must be central to any corporate or individual planning for the year ahead.’’

Manpower PLC director, Tony Hoskins, said: ‘‘The report shows a significant increase in demand for customer service staff and certainly reflects our experience, particularly in the rapidly expanding call centre sector. It is also clear that skill shortages, particularly key transferable skills, will continue to both challenge and be a training focus for business throughout the coming year.

‘‘Furthermore, the increasing prevalence of flexible contracts throughout the full corporate structure would indicate greater awareness of their contribution to both business competitiveness and individual career choice and development.’’

Further information contact Karen Dale/Tricia Back, IM Press Office, 0171 497 0496; (outside office hours: 0181 540 9815); e-mail: pressoffice@imgt.org.uk . Stuart Neill, Manpower PLC, 0171 224 6688