All indications are that the IT job market has entered a challenging period for employers. The REC's latest 'Report on Jobs’ highlights many of the trends we have already seen influencing hires in the London market over the past few months. These can be summarised as:

- Permanent placement opportunities increasing as unemployment falls
- Candidate availability continuing to drop (now on a 17 month decline)
- Salaries increasing to the market highs of 2006/2007

In a nutshell, an increasing number of employers are chasing a dwindling number of candidates, placing upward pressure on salaries. While this trend is influencing the entire UK job market, the problems are especially acute in London and within the IT sector. This means that London IT recruiters are now seeing one of the most challenging candidate market conditions in the UK, with all evidence suggesting that the situation will not ease any time soon.

In response, many IT employers will need to review their hiring strategy to avoid the threat of unsustainable salaries and skill shortages in key roles. We suggest that both long term and short term strategies are considered as part of a blended approach to recruitment. While some of these will help sidestep the immediate challenges of a candidate-oriented job market, others will enable employers to safeguard against the longer term skill shortages within the sector.

As part of this blended strategy we would recommend consideration of:

Core hires
While higher salary expectations make skilled hires expensive, recruiting the right talent directly into core roles is a necessary step for most employers. However, increasing competition for candidates means that companies should review their hiring approach to ensure both the role and company are successfully 'sold' to prospective employees.

Organic skill development
Companies that invest in organic growth and skill development will always reap medium and long term rewards. From our own IT training programmes, we have been placing entry-level candidates into London businesses for 13 years. Many of these candidates are now highly skilled lead developers and managers; helping their employers to bypass the time and expense of having to hire for skills.

Apprenticeships
With the cost of university rising, the Apprenticeship programme has become a preferred pathway for many talented young people. Our IT apprenticeships team has seen a consistently high standard of candidates on the scheme, with over 85% of employers offering their apprentices a full-time placement once the 12 months have finished. Within many leading organisations, apprenticeships are becoming a key part of their overall long-term HR and CSR strategy.

Contractors
With permanent candidate numbers dropping, contractors will still have a vital role to play in most recruitment strategies. Whether filling a temporary skills gap or fulfilling project demands we expect our contracting recruitment team to continue to grow as employers find alternatives to difficult-to-find permanent hires, or use the contracting population to give much valued technical input.

To summarise, the challenges of a candidate-short job market will pose a growing threat to all companies over the coming months. We believe that those who continue to rely on a simple one-dimensional recruitment strategy will find it increasingly difficult to find the skills they need to compete in a growing UK economy.


Tom Coakes is a Marketing Executive at Just IT. For over a decade, Just IT has offered a unique range of recruitment solutions that add value to any IT team.