Recruiting in a changing business environment
Post-covid, the entire world of work has changed — and the recruitment sector is no exception. We all know that businesses across Britain are currently facing a shortage of job applicants, but how is the professional staffing market contending with these talent gaps?
The latest UK Recruitment Index, produced by the Association of Professional Staffing Companies (APSCo), in conjunction with Saffery Champness, indicates that recruitment firms remain resilient post-Covid, but a shortage of both candidates and consultants threatens recovery.
The research also underlines how the importance of a collegiate, focused, and dedicated sales team has grown for staffing companies over the pandemic as the competition for clients and candidates has increased. Recruitment firms have a great opportunity to take advantage of the prospects that exist as companies ramp up their resource numbers and fight hard to attract talent. Therefore, the need for the sales team to adapt quickly, respond effectively and be attentive to the needs of their clients is necessary for recruitment firms to remain successful.
The biggest challenge facing firms is a shortage of jobseekers — with nearly 50% of firms surveyed reporting this as their largest issue. Just 6% of respondents stated a shortage of roles was their number one worry. However, as Ann Swain, CEO of APSCo, highlighted: “Concerns around the number of available candidates aren’t just limited to client placements. Recruitment itself is facing a brain drain of resources, with staffing businesses indicating that retaining high performing consultants is tough at the moment”. In fact, just over 40% of firms are currently fretting about a shortage of consultants.
Both challenges can be directly linked to the pandemic and have the potential to impact on business growth. Encouragingly, 66% of firms reported that remote working had a positive effect on their business, with 93% of firms not planning to change the remuneration of consultants who will now be working flexibly.
The pandemic has impacted how organisations operate in offices, with 47.5% of respondents stating they would occupy less space as a result of Covid. Pre-pandemic, 57% of firms surveyed stated that all staff were expected to be in the office for the whole week or at minimum four days a week. This has changed dramatically, with only 6% expecting their staff to be in the office four to five days a week post-pandemic. Today, 30% of firms are happy to allow staff to work five days out of the office, while the majority are allowing staff to work two to three days a week at home. These agile working practices without change to overall remuneration packages should improve the morale of the workforce and lead to higher retention rates in the future.
As Jamie Cassell, Partner at Saffery Champness commented: “The Index shows that shortage of candidates and resource are the main areas of concerns for the sector, with both of them likely to have an impact on potential growth. With opportunities continuing to present themselves as the global economy moves out of the pandemic it is essential that recruiters can adapt, whether by altering their incentive schemes and remuneration packages, increasing their use of innovative technology or the continued use of flexible working practices. These factors will be important to the success of firms going forward”.
While the pandemic is far from over, there are signs of real positivity and growth opportunities for the jobs market — and recruitment leaders seem positive about the future. When respondents were quizzed on what important lessons they will take away from the business disruption of the past 18 months, one enthusiastic respondent answered, “Be more optimistic. If we can survive a pandemic and total shutdown, surely we can survive anything?” Another advised. “Ask and your team will step up to the plate and deliver when you need it most. Don’t underestimate your ability to embrace change and come out better for it”.
However, it is also important that staffing companies prepare for the market ‘settling down’. The hiring spike we’re experiencing is being significantly influenced by the events of the last 20 months, but this will come to an end at some point. It’s likely that we won’t see the longer-term impact on the economy and inflation until the second half of 2022 and it’s crucial that recruiters plan for a hiring ‘slow-down’ next year.
