Hybrid is the new norm in competitive job market
24th Oct 2024
Flexible working models have become an established feature of the workplace, according to the latest NIJobs ‘Job Report’.
The NIJobs ‘Job Report’, authored by leading economist Richard Ramsey, reveals that hybrid roles have remained steady, with remote working options in decline.
The pandemic forced businesses to adapt quickly, offering two distinct remote and hybrid options. In the current competitive job market, embedding hybrid working as part of an employment offering is playing a key role in attracting candidates and giving employers access to a wider talent pool.
In Q1 2022, ‘Hybrid’ job listings overtook ‘Remote’ working as employers sought to encourage staff back to the office. During the latest quarter, more than twice the number of job listings specified ‘Hybrid’ working as opposed to ‘Remote’.
One-in-eleven of all listings specified ‘Hybrid’ working in Q3 2024, which compares with fewer than one in 260 listings (0.4%) in Q3 2019, which predated the pandemic. The number of job listings specifying ‘Remote’ working has broadly followed a downward trend over the last two years, with ‘Remote’ only vacancies in Q3 2024 less than half of their peak in Q3 2022.
Meanwhile jobs offering hybrid working on the NIJobs hiring platform have remained broadly within the 9-10% range for the last seven quarters (8.9% to 10.4%). Candidate interest remains strong, with searches on NIJobs for hybrid roles up almost 4% compared to the same period last year.
The NIJobs Job Report also shows that the market has moderated since its record highs, but vacancies in the third quarter are still almost 35% above pre-pandemic levels (Q3-2019). Job listings are up in Q3 (3.8%) quarter on quarter, with over half of 39 employment categories posting a rise.
Commenting on the report, Sam Dooley – the Country Director of The Stepstone Group Ireland, with responsibility for NIJobs – said: “Recent announcements from major companies such as Amazon and Boots about returning to the office have provoked debate about the future of hybrid and remote working. Our analysis of job postings offering these models identified two very distinct trends. While fully remote work is steadily declining, hybrid opportunities have been consistent, suggesting it is likely to remain a lasting feature in this competitive labour market.
“The consistency of hybrid listings could be driven by the overarching benefits that the model offers, combining the best of both worlds attracting talent by offering flexibility while encouraging productivity. It’s likely that more employers will follow this trend and encourage staff to be in the office, although how many days in the office will come under scrutiny.
“As employers contend with a competitive hiring environment, incorporating hybrid work into their offerings reflects a recognition of strong employee demand for flexible work arrangements.
Our Jobseeker snapshot survey from earlier this year revealed that hybrid working was the preferred way of working for almost 60% of jobseekers. While 85% said they’d be quicker to apply for a role that included details of the company policy on hybrid working. Searches for jobs on NIJobs offering hybrid working are up almost 4% compared to last year, so candidate interest in these roles shows no sign of easing.”
Richard Ramsey says 2024 has been an encouraging year so far, with official labour market statistics recently revealing a record number of employee jobs in Q2 2024 (826,130), while the unemployment rate hit a new record low of 1.9%. Despite the positive signs, recruitment remains a key challenge for both the public and private sectors.
“The tight labour market and challenging hiring environment is evident within the latest NI Jobs Jobs Report for Q3 2024,” he says. “Northern Ireland’s employers posted their third successive quarterly rise in job listings in Q3 2024. The 3.8% quarter-on-quarter rise took the number of advertised vacancies to a four-quarter-high. Despite this latest increase, job listings in Q3 2024 were 8.4% lower than the same quarter last year.
“Despite lingering cost of living concerns, retailers are hiring on all cylinders. Retail job vacancies hit a record high in the latest quarter, having soared since the pandemic. The Retail employment category entered the top 10 (ranked 7th) for the first time and has doubled its share of overall vacancies since Q3 2019. However, this latest growth is largely linked to a significant new employer availing of the NIJobs hiring platform.”
On those sectors slowing down in recruitment, Richard adds: “Manufacturing output has fallen in each of the last seven quarters, up to and including Q2 2024. This reflects the wider manufacturing slowdown led by China and impacting on the rest of Europe and beyond. While this is expected to impact on hiring in the year ahead, there are already signs of a slowdown impacting on local firms. Both Engineering and Manufacturing dropped out of the top 10 categories in Q3 2024.
“Some of Northern Ireland’s flagship exporters have recently announced redundancies and reduced working hours for its employees. Following record engineering vacancies in Q2 2022, the employment category has posted a decline in job listings in eight of the last nine quarters. Q3 2024 represented the lowest number of engineering vacancies in 14 quarters.”
Looking ahead, recruitment difficulties have become the new normal for employers.
“Employers face uncertain headwinds that could dent hiring intentions. There is some speculation that Labour could increase taxation on employers’ pension contributions for its employees. These are currently exempt from National Insurance Contributions and facilitate salary sacrifice schemes. It now looks increasingly likely that Rachel Reeves will increase the overall rate of employers’ National Insurance Contributions as well.
“While supporting ‘Good Jobs’ has become the new ambition in the Department for the Economy the success of this will be inextricably linked with the availability of affordable housing. Northern Ireland’s current housing supply crisis and rapidly rising rents will impact on Northern Ireland’s attractiveness as a place to live and work.
“Employers’ ability to successfully attract staff, particularly from outside these shores, could increasingly be determined by employees’ ability to find suitable and affordable accommodation. Good Jobs and Good Housing need to go hand-in-hand with the Stormont Executive’s ambition.”
To read the full NIJobs Q3 Job Report, please visit: https://www.nijobs.com/recruiters/nijobs-job-report-q3-2024/
