We understand that businesses operating within the recruitment sector industry face specific challenges.
For many, the recruitment sector is seen as a barometer in terms of business confidence. During the past 2 years, many recruitment businesses have enjoyed really positive trading. This was partly driven by a surge in activity as mandates previously put on hold during the pandemic were reactivated, but also partly due to the well publicised pressures on the UK labour market, meaning candidates were encouraged to move roles more frequently and employers were aggressive in their hiring strategies. The sector has undoubtedly slowed down, in part, due to uncertainty in the current market around the wider economy. The outlook for the sector does, however, remain reasonably positive, as it is unlikely that the slowdown in business confidence will outweigh the impact of the continuing pressures within the UK labour market.
The future of the recruitment sector
At Menzies, we are seeing the evolution of new business models, the creation of additional income streams and international investment as ways to reduce risk inherent within the sector. Diversification to spread risk and service a wider number of sectors is a further change we are seeing that comes directly from the pandemic.
More than ever, the role of the successful recruiter is to add value to the process. In a candidate driven market, successful recruiters are focusing on working with their clients to help them stand out in the “race for talent”, looking at ways to help employers strengthen their “employer brand”. Experiences from the pandemic have also accelerated a change in candidate priorities, more and more we are seeing a requirement for flexible working, candidates wanting to join organisations that embrace diversity and inclusivity and recognise their responsibilities in terms Economic Social Governance. Successful recruiters are recognising and become genuine “recruitment consultants”.
We are seeing more technology driven recruitment platforms matching candidates to vacancies, particularly within the temporary labour market. Artificial Intelligence and Robotic Process Automation solutions are streamlining research activities, which have been notoriously labour intensive historically.
The need to attract, retain and motivate quality employees is not a challenge unique to the recruitment industry, however in a sector where staff are young, dynamic and mobile, the changing workforce generations and their attitudes towards work and rewards is another important aspect of protecting and retaining value.
The industry continues to become increasing regulated, especially in respect of payroll commitments and the tax legislation effecting the temporary market.
Our Recruitment Sector Expertise
The need for successful recruitment businesses to have a clear strategy and vision, together with a loyal and committed workforce is key. We work closely with our clients in the recruitment sector to help face these challenges.
Access to experts with the Menzies organisation ensures our recruitment sector clients receive the right mix of industry experience and technical expertise.
We have strong knowledge of the recruitment sector, developed from working with a large number of clients in this arena, combined with a contact base of other professionals and organisations who are representing or are connected to the industry. We hold regular focussed events, which provide an opportunity for recruitment businesses to gain further insight into key issues impacting their sector.
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