FM businesses lead charge in job creation in 2013

15 April 2013

The Barclays Job Creation Survey 2013, which questioned over 700 businesses, including facilities management providers, has revealed that 72% of FM firms will be creating new jobs this year – the highest of all the job sectors surveyed (2012: 70%)

In further good news for the sector, the majority (74%) of FM firms are not expecting to lose any jobs this year. 58% of FM providers also said they were interested in taking on ex-public sector workers – a significant jump up from the previous year (2012: 32%). 65% also state that ex-public sector workers are well equipped for a role in their business.

This is in stark contrast to the national cross-sector average, in which 57% of all businesses surveyed stated that they do not want to hire ex-public sector workers, with 52% claiming that they are not well equipped to take on a role in their business.

Other findings relating to FM businesses:
46% of FM firms think there will be a shortfall when it comes to private sector job creation compensating for public sector job losses, and of those, 13% think there will be a major shortfall.
79% of FM firms said that the Government’s efforts to remove barriers to job creation are having no impact on their business, although this is an improvement on last year (2012: 90%)
76% of FM firms say that an increase in sales lead to job creation, rather than creating jobs in order to drive sales (2012: 90%).
Of the jobs planned this year, 16% will be senior management roles and 73% will be middle, junior or skilled positions.
· 84% of FM firms say that a reduction in Employers’ NI contributions will have an impact to the job market – the highest of all sectors surveyed. This makes the Chancellor’s recent Budget announcement to waive the first £2000 of employers’ contributions exactly what businesses want.

Commenting on the findings, Nicki Thomson, Head of Business Services, Barclays Corporate Banking, said: “It’s positive news that FM companies are leading the way when it comes to job creation this year. The sector has weathered the economic storm better than some, and there is optimism for the future, largely driven by the amount of Government contracts we have seen in 2012 and will see throughout this year.

“The survey also reveals that the majority of FM businesses are interested in taking on ex-public sector workers, as their skills and experience can be transferred into their businesses. This will be welcome news to ex-public sector workers, as the on-going rebalancing of the economy means many are having to seek opportunities in the private sector.”

Additional national cross-sector findings:
The survey revealed that 71% of mid-sized businesses* are creating jobs this year, up on the previous year (2012: 65%). The majority (79%) of businesses are not planning any job losses within the next 12 months.

There are significant differences in hiring intentions for 2013 between sizes of companies:

· 65% of large businesses are planning to create jobs - fewer than last year (2012: 72%).

· 50% of the largest businesses are planning to hire, a significant reduction in hiring intention, compared to previous years (2012: 70%, 2011: 85%).

· Overall 56% of all companies plan to create new jobs this year, which is little changed from last year (2012: 58%).

Regarding UK businesses’ view of public sector workers and Government initiatives:

· 56% of businesses believe that there will be a shortfall of private sector job growth compensating for public sector job losses. However, this is more optimistic than last year (2012: 71%).

· 60% of the UK’s largest companies are now willing to hire ex-public sector workers, showing the biggest change of attitude, compared to last year (2012: 38%). They are also the turnover group most likely to say that ex-public sector workers are “quite well” or “very well” equipped to take on a role in their business.

· 52% of UK businesses believe public sector workers are ‘not very’ or ‘not at all’ equipped to take on a position in their organisations (2012: 53%).

· The vast majority of companies (83%) believe that Government efforts to remove barriers to job creation are having no impact on their business, although this is a slight improvement on last year (2012: 88%).