Construction sales insight report for Q3 2011: Hit the wall...but still building

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.

Hit the wall…but still building

One of last quarter’s outstanding performers, with sales vacancies which grew by more than 3.8% on the previous quarter, construction has, if you’ll excuse the pun, hit something of wall in this quarter. Despite achieving the highest level of single month growth in July (up at 4%), figures crashed back to 0% for August, and recovered only slightly with growth rising in September to 2%.
 

The optimists among us will see this quarter as a statistical blip in this silliest of seasons, with sales recruitment bouncing back to growth in the last month of the quarter. However, with UK construction companies reporting reductions in new business for the first time since February due to (in CIPS CEO David Noble’s view) ‘delayed and cancelled projects, more competitive tendering and general uncertainty over economic conditions’ a more sober perspective emerges.

Markit economist Sarah Bingham, agrees, saying: “Civil engineering declined during September, reflective of cuts in public spending. Meanwhile, house building activity decreased at the fastest rate in nine months.”

Looking ahead with more confidence?

However, Bingham highlights recent government plans to release more land for development, with construction companies not paying until the resulting properties are sold, as a cause for optimism, or at least something of a reprieve for the sector.

While such statements may appear insignificant, a more positive outlook is helpful in energising the candidate pool. As we reported last quarter, the high speed with which top talent emerges, is acquired, and leaves the recruitment market, causes a major problem for recruiting organisations. Therefore anything to increase candidate confidence and numbers is to be welcomed.