Recruitment, like all elements of business, is very much affected by the constantly evolving economic and political landscape. The industry has been at the forefront of the rollercoaster of uncertainty and caution, while those within the IT sector, rightly considered as the bell-weather for wider industry, have experienced first-hand the effects of diminishing budgets, perhaps more than others.
Despite the period of caution cast by recent political events, and the instability created through the coalition government’s announcement to make significant public sector spending cuts[1], budgets are seemingly on an upward curve, with overall demand for IT professionals increasing in each quarter of 2010[2]. However, until the freshly-formed government truly maps out its intentions and settles into day-to-day business, uncertainty is likely to restrain true revival in recruitment.
A varied pallet
Tough times and increased competition has forced companies to re-think their business structure and recruitment strategies, with some choosing to outsource, allowing them to focus on strategic competences core to profit margins.
For those that don’t outsource, the trend for streamlining is still essential. This combined with an increasing range of candidate sourcing tools, means that the HR manager’s choice of which route to take can be a daunting one. The increasing popularity of online has forced many to reassess their traditional methods of recruitment.
As more businesses recognise the value of outsourcing, Recruitment Process Outsourcing activities (RPOs) are likely to grow at a disproportionate rate to the rest of the market. RPOs usually manage the entire recruiting/hiring process, however, as with any outsourcing activity, an RPO can only succeed in the context of a well-defined staffing strategy, providing initial direction and continued monitoring to assure the desired results.
The traditional recruitment consultant is still going strong, covering a broad range of sectors, and working to match their pool of candidates to client’s open positions. Consultancies today increasingly utilise complimentary methods such as specialist online job boards to facilitate faster fulfilment of positions through direct access to their target demographic.
Due to the phenomenal number of potential candidates now online, there is likely to be a shift in companies turning directly to sector specific sites, the use of which can improve a company's time to hire, increase the quality of the candidate pool and reduce costs. Furthermore, focusing on one demographic enables specialist sites to offer more jobs for that particular sector, which in turn attracts the appropriately skilled candidates, and in some cases evolves to create a community of professionals.
The role of social media
Social media has emerged as a useful complementary tool to further extend the reach of such communities, extending visibility of available positions to a wider circle of candidates. Despite playing an increasingly familiar role, research by CWJobs revealed that the majority of participants still do not see social media as a professional tool. Interestingly, more contractors than permanent staff use LinkedIn (49% vs. 36%), which supports the findings of our Internet Usage Report [4], that recruiters note social media as a possible tool for passive recruitment, but found that the majority of candidates will use social media for networking and personal reasons rather than to look for a new job.
An online future
The recruitment industry is showing sure signs of recovery, but there is undoubtedly still a way to go. With 2011 set to be the year for real revival it is essential that HR managers are educated and prepared for an upsurge in activity which will require a wide variety of recruitment tools to ensure the best possible results at the lowest cost.
Although traditional methods are still used by many, increasingly companies are recognising the benefits of specialist organisations that can offer valuable insight into their target market, and attract true sector professionals. With the unrelenting pressure to cut costs, and increasing user base of sector specific online sites, companies are turning to online options as an essential component of their recruitment arsenal, helping ensure the best possible candidate is selected from the widest possible pool.
[1] 'After the cuts' Ian Tomlinson-Roe & Steve Beet in The People Bulletin, 10 November 2010
[2] CWJobs & JobAdsWatch.co.uk quarterly update, November 2010
[4] www.cwjobs.co.uk
See also: 'Online marketplaces are the latest trend in e-recruitment space' by Virginia Raemy in The People Bulletin, 10 November 2010
'Secrets of online recruitment success' by Richard Nott in The People Bulletin, 14 July 2010