Back in October we helped i-Business Resources (i-BR) conduct a survey of UK recruitment agency professionals. The survey covered attitudes on the current state of the recruitment market, the main challenges faced today by recruiters, and the views on the importance of IT solutions in facing these challenges.
If you’d like to see a full copy of the report you can download it for free (2010 Recruitment Market Survey report) but I thought I’d share a bit of the summary.
Agency market recovery and buoyancy
Overall, 53% of Recruitment Agency recruiters feel the UK recruitment market is more buoyant than this time last year. However, the recruitment market still appears to be in an unstable and unpredictable position when looking at differences in sectors and regions.
The South East / London / Midlands are the least buoyant areas in the UK. In these areas nearly equal numbers of recruiters reported a less buoyant market as those reporting a more buoyant market.
The further from the Midlands/South East/London you go the greater the recovery being reported. In Scotland and N. Ireland for instance over 70% felt the market was more buoyant than last year.
Overall, Perm business is seen as the area of greatest recovery over the last year. Temporary business is less buoyant but (with the exception of Care and Education sectors) overall Temp business is still more buoyant than last year.
Market Confidence
Agencies are expecting a long period of uncertainty in a difficult market and economic climate.
In the short-term, 58% of recruiters felt the market will remain the same in the next 6 months, 22% felt the market would get worse, and 20% felt we would see an upturn.
This Short-term confidence seems to be justified when looking at the plans of Employers. 88% of Employers felt their recruitment levels in the next 6 months would remain the same, or increase, in both Perm and Temp/Contract areas.
Over the longer-term however, most Agency staff felt that a full recovery to pre Credit-Crunch levels is at least 18 months away. 38% felt that a full recovery would take at least 2 years, with some of believing this would be much longer, if it would ever recover to the levels previously seen.
Today's challenges for Agencies
In addition to the uncertainty in the economy Agency recruiters also highlighted the following as challenges they are faced with:
• Eroding margins. Due to Master Vendors, Employers demanding low fees, and agencies themselves under-cutting each other to win business.
• The ability for employers to do their own recruitment. Fears over employers using Job Boards and Social Media to perform their own recruitment were raised, as were the equalisation impact of the Agency Workers Regulations.
• Poor perception of agencies by clients. It can be difficult to persuade some employers to use agencies due to their perception of agency service.
Within this strategic background the key areas of operational concern for recruiters were as follows:
1. Finding good Candidates was rated as the biggest challenge facing recruitment consultants. 56% of people rated this as their 1st or 2nd priority.
2. Finding new Clients was rated overall as the second biggest challenge, with 52% of people rating this as their 1st or 2nd priority.
3. Reducing costs and being more flexible to exploit new market opportunities were rated approximately the same on an overall rating scale.
4. Overall, the least important issue for agencies was improving service with only 16% rating this as their 1st or 2nd priority.
The report also looks at the use of technology by agencies (you can check that out in the full report). The bit I’d like to share is the areas that the highest percentage of recruiters thought they needed to improve in.
1. Social Media – 29% of people felt that their use of Social Media was already good or excellent, and 33% wish to improve their use of Social Media. This illustrates a growing adoption of Social Media as a useful recruitment tool.
2. Email Marketing – This area has grown considerably in terms of importance to recruiters in the last 12 months. 41% of recruiters now recognise a need to improve in their strategic use of email marketing. This perhaps shows a growing recognition that email marketing can be a useful part of an agencies overall marketing strategy to attract clients and candidates and build brand.
Finally I thought I’d share something from the Employers View of Agencies section.
The services received from Agencies was rated overall as ‘Adequate’ by employers. 42% rated the services as ‘Good’, but 14% rated the service as ‘Very Poor’.
The main benefits for using Agencies were the time-savings that were provided to employers (e.g. from not needing to sift through CV’s themselves), and how quickly Agencies can turn around recruitment compared to the employer if they were to do this all themselves.
The top 3 frustrations when using Agencies were:
1. The quality of service provided
2. Poor screening of Candidates (against employer culture, references etc).
3. Candidates not matching the level of requirements for positions.
Certainly interesting when we see that agencies don’t feel the need to improve the quality of their service to employers!
Full copy of the report here