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Key Challenges Faced by Recruitment Agencies in 2018



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Key Challenges Faced by Recruitment Agencies in 2018

UK recruitment industry has witnessed some major changes over the last few months. Brexit, GDPR, possible IR35 reforms in private sector, economy and technological advancements have changed the way recruitment businesses operate and hire.

If you’re looking to stay ahead of the game and prepare for the upcoming year, learn how to overcome these five challenges faced by the recruitment businesses.

1. Keeping up with Legislation

One of the most difficult challenges faced by recruitment agencies this year has been General Data Protection Regulation (GDPR) which came into effect on 25 May 2018. While companies and organisations in Europe and beyond scrambled to prepare for the implementation of the GDPR, reports show there are many companies which are still not compliant. With sanctions for non-compliance potentially reaching millions – possibly even billions – of euros, nobody wants to go down in history as first to feel the wrath of the GDPR.

HMRC confirmed its plans to extend the current public sector IR35 rules to the UK as a whole by launching its long-awaited consultation into ‘Off-Payroll’ working in the private sector. This is likely to result into temporary volumes going down and increase in perm placements.

Whether there is someone in your office dedicated to keeping track of all the recent legislative changes or you use the services of a recruitment back-office solutions provider, you need to stay informed about these changes.

2. Candidate shortage

According to the Recruitment and Employment Confederation’s latest JobsOutlook report, half of the UK employers looking to recruit for permanent roles expect to find a shortage of candidates – five points higher than in the same period last year (March – June 2017), with construction and health & social care being the sectors registering most concern. Despite candidate shortages, UK employers’ confidence to hire and invest is at its highest for 12 months, but still 15 percentage points below the trend before the Brexit referendum.

REC chief executive, Neil Carberry, said, “The underlying trend on hiring is still positive. Amidst the political maelstrom, employers are focused on growing their businesses – and are finding that there are opportunities out there for firms with great product.

“But we are starting to see the effects of rising uncertainty. Candidate shortage is likely to be caused by a combination of people being less willing to take a chance on a move, and a falling trend or workers coming from the EU – especially in sectors like construction and hospitality. The move to hiring more temporary rather than permanent staff also reflects employers’ sense that they need to be flexible to adapt to whatever outcome we reach on Brexit.

“To protect jobs and hiring, businesses across the country will be looking for the government to secure a deal on Brexit that delivers the transition period and simple, ongoing access to the EU workers who can help keep our key industries growing in a time of labour shortage.”

3. Competition for Talent

With a smaller candidate pool, recruiters from different firms are left to battle it out to attract qualified candidates. With qualified candidates being in such high demand, you will have to provide value to your candidates that they cannot get anywhere else. To help you keep your candidates happy, ensure your recruitment agency is providing the best candidate experience possible. You want to establish a bond with your qualified candidates, not only to work with you in the present but in the future as well.

4. Speed of hiring

The recruitment industry is moving faster than ever and a recruitment agency that is not able to keep up the pace will be slowly left behind. In today’s on-demand society, quick turnaround time is essential, meaning that recruitment agencies are going to have to perfect their processes sooner rather than later. To speed up your hiring process, have a clear job description, simplify the application process, give proper feedback and ensure you deliver an excellent candidate experience.

5. Technological advancement

The technological advances is changing the way recruitment agencies hire. Social media outreach and recruiting software are making recruiters’ life easier than ever before. Not only is it easy, it’s cost-effective, too. However, many people in the recruitment industry struggle to keep up with all the newest ways to acquire clients and manage their profiles online. Take the extra time to learn the newest introductions to social media recruiting, and find CRM and ATS programs that work for you.



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