What’s next for the recruitment industry?
by Heat Recruitment
by Ross Bennett
As we approach the end of the year, it’s interesting to reflect. Undeniably it has been an intriguing year for the job market. Not only has the UK hit record highs of employment, increased the national minimum and living wage, but Brexit doubts still loom over our undecided and potentially volatile government.
With Brexit anxiety for businesses ‘at its highest since the referendum’, many employers are turning to the recruitment industry to help with staffing needs. This is reflected in the recently published figures evidencing that almost 1,800 new agencies have launched since the 1stJanuary. Not only does this identify a demand for recruitment services, but it acknowledges the appeal and confidence in owning a recruitment business currently.
This progression is vast. When comparing the growth of recruitment agencies over five year periods (e.g. 2013/17 vs. 2008/12), there is growth of 198%. It would seem the industry is booming, and it doesn’t look like Brexit is proving too much of a hurdle in the long run.
Don’t rest assured yet, however. While these statistics are positive and indicate high growth for the sector, with it comes greater contest. According to the Resource and Talent Planning Survey (2017), organisations are most likely to strongly agree or agree that competition for well-qualified talent has increased over the past year (82%).
Facing a skills shortage and high levels of employed individuals, it may well be a fierce battle for the top candidates, particularly if the gates into the UK are restricted by new national law – whatever that may be.
Another challenge for recruiters is the suggestion that businesses fostering their own employees may well be the answer to the skills shortage. The same surveystatesthat organisations are now most likely to reduce recruitment difficulties by upskilling existing employees to fill hard-to-recruit-for positions. This will make it that bit harder to entice candidates away from their current role due to stronger levels of employee-loyalty.
Recruiters and organisations alike will have to work hard at attraction in this case to ensure they have a focused access to the talent pool. An increased concentration on company culture, perks and wellbeing, alongside generous and fair salary packages and flexible working are upcoming priorities for prospective employees. We now live in a candidate-driven market and they have never had so much power. So, it’s up to recruiters to harness this power and direct candidates into their next positions with care.
One of the key indicators for success, and in fact survival for recruitment agencies, is in specialising services. Over the years, some recruiters have typically had a reputation for chasing their commissions and not providing an adequate level of care. With recruiters amongst the least trusted professionsin the UK it can really pay to be an expert in your field in order to raise your profile as an agency of choice and encourage trusting relationships. Doing so can be a significant step towards overcoming that troubling statistic that52% of respondents who have used a recruitment agency between September 2017 to September 2018, do not feel they were dealt with honestly.
Here at Heat Recruitment, we have enjoyed immense successes in the past year (hey, if you have a trumpet to blow…). Not only have we increased our workforce by 56%, but we have continuously improved our relationships with both candidates and clients and continue to grow our placements.
We owe a lot of our success to our specialisms and our talented and focused team that are truly knowledgeable in their respective fields. Indeed, the top two sectors proposed for high growth in 2018 were Information Technology and Engineering – areas we’ve seen significant demand over the last 12 months. Specialising and placing your candidates at the forefront of importance is essential for your company culture as you battle it out in the competitive and exciting industry of recruitment.
The UK recruitment industries saw a total revenue of £32.2 billion in 2017 – up from £23 billion just five years before – and this is only set to grow. If you want a piece of the pie, there are four key focuses where the recruitment industry is going to hone their scope. That is; candidate’s needs, specialising your industry areas, client relationships and greater transparency. Improved processes will see continuous growth in the recruitment sector, surpassing Brexit woes.