Recruitment predictions for 2018

January 5th, 2018 | Industry News

In the final days of December 2017, a report from the Recruitment and Employment Confederation (REC) reveals that fewer UK employers are planning to take on more staff next year. In fact, employers in London are expecting to reduce jobs. Two thirds of companies said that Britain will be a less attractive place to do business in 2018 and at the same time as recruitment struggles, the Chartered Institute of Personnel and Development said that pay rates are likely to remain tight, with most employers not intending to make any pay rises above the current inflation rate. What does this mean for the recruitment industry and recruitment generally?

The same REC report showed that many British businesses are finding it hard to locate the skilled workers they require, which can lead to limited business growth as well as stifling wage increases. The evidence is that permanent jobs were filled at the quickest rate for three months in November, as businesses grabbed suitable candidates. For recruitment consultancies, applicant tracking software that rapidly filters candidates by experience and/or qualifications can make the difference between a successful placement and a failed relationship with a client. Cloud recruitment software offers a distinct advantage in this regard, giving consultants online access to candidate profiles and client communications both round the clock and when on the go, meaning that the face-to-face part of consultancy can be maintained alongside managing the administrative processes of effective recruitment systems.

Pay differentials across the UK

Staffing demands had led to some substantial increases in the starting salaries offered for permanent jobs, especially in the north of England. Over 40% of recruitment consultancies had increased their billings in both temporary and permanent divisions in November and December.

Recruitment in perspective

In the previous 12 months, recruitment consultants in the UK found permanent jobs for nearly a million people. Around 1.3 million temporary employees also owe their employment to the work of recruiting firms. This means that a total of £28 billion in temporary placements and £4 billion in permanent placements was generated to contribute to the UK economy. Easy to use recruitment software has led to an increase in the number of new recruitment agencies being set up, with 9,001 being registered since January 2017.

In a month when the REC suggests that in 2018, 56% of all UK vacancies will be filled by agencies, the future for British business may depend in large part on the quality of the recruitment agencies they call on, and the agencies will in turn rely on recruitment software solutions that support them in rapid, flexible and well-informed candidate management. Simple recruitment software can still deliver powerful results for clients whilst ensuring maximum consultant efficiency.


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