
As a recruitment process outsourcing , and temporary managed service business, we are players in the same industry as traditional recruitment agencies. Stef, one of our newest members of staff looks at the state of traditional recruitment.
The recruitment industry as a whole took a severe hit in 2009 and 2010 and a number of recruitment companies did not survive the economic downturn with The Recruiter reporting again that a large number of recruitment agencies were put into administration during the last quarter of 2010.
This said, specialist sectors within the industry still continue to grow with The REC stating that employers are looking to continue to grow their permanent workforce in 2011 despite starting the year with a cautious approach. In addition to this they report that 32 per cent of employers plan to grow their temporary workforce over the next 12 months. This is backed up by figures issued by the REC and KPMG showing that permanent and temporary staff billings continued to rise in the last quarter of 2010 showing a growth in permanent placements and a rise in the demand for temporary staff.
The main issues currently affecting the recruitment industry as a whole are the government’s policy regarding migrant workers, the Agency Workers Directive (AWD) which takes effect from the 1 October 2011 , the recent VAT rise and its impact on Public Sector recruitment costs, the Public Sector cuts casting a shadow over the jobs market in general, utilisation of the internet and mobile technology, and as ever agency profitability.
The recruitment industry will no doubt be faced with a number of specific challenges throughout 2011, alongside the longer term challenge of competing and growing RPO and inhouse recruitment models, but the figures published by the REC suggest that the medium term outlook at least seems to be more encouraging.
Written by Stafanie Cooke, a recruiter at PPS