Business Services sales insight report for Q3 2011: Stand out Q3 performer

It’s ‘back to work’ for UK PLC

Despite a summer of unprecedented social and economic unrest across continental Europe, Britain is still hiring. Such a statement appears to fly in the face of assumed wisdom and doom-laden media commentary, however the stats tell us businesses are still in the market for talented sales professionals. And, according to the Q3 BMS Sales Insight Report, year on year growth of sales vacancies is on the up.

The Report, which gathers sales recruitment data from across the UK to give an accurate picture of sales recruitment trends, shows confidence from employers in many industry sectors – with the rate of growth standing at 6.58%, up 0.9% compared to this time last year. With UK companies relying heavily on sales-figures to boost performance, the pressure is again on to recruit motivated, talented sales individuals that deliver results.

Candidate confidence remains low

Of course, the employer is only half the story. The other – around the candidate pool – is less positive. While businesses are hiring based on revenue and growth projections, often as not candidates are getting their information from the media who, of course, are not always wrong. But the aforementioned doom-mongering of many a tabloid and broadsheet has instilled something of a ‘batten-down-the-hatches’ mentality.

Despite the fact that Britain’s economy exceeded analyst predictions to grow at 0.5% in the third quarter, and we’re seeing stable levels of vacancy growth (the standout sectors in Q3 being Business Services and Construction, up nearly 6% and 4% respectively on 2010 figures), talent appears to be staying put. 

On the flip side, growth levels fell against the previous quarter’s figures in the hard hit FMCG sector, and manufacturing witnessed a normalisation after its stellar growth over the first two quarters of 2011; figures that, when taken out of context, do little to alter negative perceptions.
We discussed this issue last quarter and the trend – and its resultant challenges - continues.

New ‘coping’ strategies

This apparent disconnect is having a major impact on companies, with a massive 74% reporting they’re finding it tough to attract top sales people. In these challenging times, adapting to the new market realities means it pays to review what you do – and how you do it.

Which explains why, in a bid to increase their sphere of influence, 21% of companies now actively look outside their sector to attract talented sales people. And why, in the battle for top sales talent, 68% have changed their recruitment processes to find the best candidates.

So, despite the hype, for employers and candidates the Q3 BMS Quarterly Sales Insight Report highlights business as usual; or perhaps the continuance of the status quo. Vacancies are up, but for how long remains to be seen.

Stand out Q3 performer

Of all the sectors tracked in the quarterly BMS Sales Insight Report, business services proved to be the strongest and most consistent performer in Q3, showing an average sales vacancy growth rate of 3.4%.

Predominantly serving the private sector, business services organisations - from couriers and transportation to financial and professional services - are rather more immune to the spending cuts impacting, for example, the medical device sector. And indeed procurement is rather less of a strategic decision (requiring senior ratification) than, say, construction sector projects.

As a result, the sector has been able to benefit from the general upturn in the private sector post-recession; with essential business services being switched back on as the pressure on corporate budgets has eased over the past 12 months or so.

Further evidence of the health of the sector came during the August mid-point of the quarter, with the release of the seasonally adjusted Markit/CIPS Business Activity Index. This highlighted growth in the sector accelerated at its fastest pace for four months, recording 55.4, a stronger performance than the June figure of 53.9.

Confidence must increase

Stronger market conditions and higher enquiry levels provided the catalysts for the upward curve, however the CIPS found that business confidence was low. This is an interesting counterpoint to the BMS findings that point to low candidate confidence, but a slightly more buoyant mood from employers. It is perhaps characteristic of the more tactical nature of the sector; and the ease and speed with which customers can switch services on and off.

But that said, the positive economic growth figures just released by The Office of National Statics lend some encouragement to the sector and to its continued growth. This can only increase the confidence of employers – something that must happen to encourage the same within the constricted candidate pool.