New statistics show, starting a recruitment agency today is more difficult than ever. The recruiting landscape has changed drastically over the past decade and there are now more challenges than ever facing recruiters and consultants.
That said, there has been a rise in the number of recruitment agencies set up in the recent months and there were 54,000 jobs listed on job sites in the first week of 2018, 20% more than the same week in 2016.
However, despite what appears to be a buoyant job market, the BCC Quarterly Economic Survey found that the percentage of services firms attempting to recruit is at its lowest level for 25 years. Those that are recruiting are experiencing significant difficulties. 72% reported they were having problems sourcing skilled staff – a record high. Export sales and orders are at a low, mostly due to uncertainties arising from Brexit and this is undoubtedly affecting recruitment.
Some experts believe that employers are putting off hiring as they wait to see what the outcome is from the Brexit negotiations, but statistics from the Recruitment and Employment Confederation (REC) show that this uncertainty may be waning as it has come to the point that employers can’t put off hiring decision any longer.
Nevertheless, Brexit is already having an impact on talent acquisition. Recruiters are seeing a fall in international hiring. 30% of recruitment companies are seeing a decrease in demand for their services from core European market. Candidates are looking elsewhere as they are unsure how their rights to work will be affected by Brexit. A recent study by CIPD and The Adecco Group shows that the number of EU born workers in the UK has fallen by 95% year-on-year.
Other surveys highlight new problems for recruiters. While 77% of recruitment firms expect revenue to increase this year, only 31% expect their margins to increase. Most report that their biggest issue is a shortage of candidates coming to agencies. Traditional methods of attracting candidates aren’t delivering the results they used to, which is why many consultants are now focussing on improving the candidate experience.
What is sure, online recruiting will play a big role in addressing this. These days, every recruiter needs a job site or job board in order to acquire candidates and market their business, but this is only the tip of the iceberg when it comes to recruiting online. More candidates than ever are using social media to find work and recruiters need to make greater use of these platforms to source the best candidates.
New challenges in recruitment require new solutions
There clearly is business out there for those seeking to start a recruitment agency, but attracting the best talent in these uncertain times demands a new approach. It’s no longer simply about sourcing candidates and jobs and putting them together. Recruiters need to come up with innovative solutions and recruitment strategies that address these new challenges from an economic, political and social perspective, using any new technologies that can help them do this.
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