We understand that businesses operating within the recruitment sector industry face specific challenges.
The UK recruitment sector has demonstrated incredible resilience in recent years, and plays a vital role in the growth of the UK economy. However, recruitment businesses will always be one of the first to experience the impact of changes in global business confidence, this was particularly evident during the recent pandemic with recruitment activity falling away rapidly as lockdowns were introduced. Mitigating this risk and protecting business value, remains a key challenge for the recruitment industry.
The future of the recruitment sector
We are finding that the majority of recruitment businesses are enjoying very high activity levels as the UK labour market “bounces” back from the impact of Covid. There is no doubt that Covid and Brexit beforehand, have further exacerbated the candidate shortage in many sectors, this coupled with rapidly increasing wages and changes in flexible working patterns, has resulted in most recruitment businesses being “busier” than they ever have been.
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 recogising 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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