Total recruitment industry turnover was reported by the Recruitment and Employment Confederation as being up by over 3%.
In many ways, 2013 was a mixed bag in the UK recruitment world.
Total recruitment industry turnover was reported by the Recruitment and Employment Confederation as being up by over 3%. This growth in turnover was significantly higher than predicted and the good news is that a significantly higher number of permanent placements were made in 2013 than in 2012 (an increase of 12% according to the same agency). This is highly encouraging, but for those of us with our feet firmly on the ground, we know that margins are being squeezed and lack of quality candidates is the reality we faced day in and day out in 2013.
So what is 2014 likely to hold?
The economic backdrop
If we’re to believe the headlines in the press right now, there’s nothing but good news for the UK economy. Overall, the economy this year is predicted to reach levels not seen since the recession started and the recruitment industry is going to mirror this impressive bounce-back. Whether or not this is a just “New Year Feel Good Factor” stuff we’re being fed, only time will tell.
I think we’re pretty much all in agreement that competition in the recruitment industry is close on an all time high. What this competition means is that the power lies with the consumer: yes, our clients are in a great place to negotiate and squeeze your margins even further.
Price vs quality
There are certainly rumblings that while prices are being squeezed, there are still discerning clients prepared to pay an extra dollar or dime for quality and speed. This has to be good news, but delivering on it is a tough call.
So what can you do to make 2014 even better than 2013?
If you’d like to discuss ways that your recruitment business can become even more effective, more efficient and more profitable, then call Stuart or Marie on 0845 606 9632.