All roads lead to temporary or short-term recruitment. Well, maybe that’s a stretch (for the moment) but it’s true to say that if recruitment agencies don’t get onboard the temporary recruitment train, they are going to miss one hell of a ride.
The temporary revolution is happening thanks to myriad reasons that include the impact of the recession, lifestyle choice, zero-hours contracts, certain industry pressures, skills shortages, technology and any number of other influences. And however short-term or reactionary the motives may seem, they have had an enduring impact on the labour market and there will be no going back to the days when permanent contracts were the only game in town.
The current rate of expansion in the temporary jobs market is the fastest seen since March 2010. Growth of temporary billings have also accelerated, reaching its fastest pace for over 15 years as more employers look to hire interim contractors to plug the gaps in their workforces. We’ve provided an infographic that provides a snapshot of the of the current freelance / contractor landscape as well as a blog post about how easy it is to become a contractor.
If all of this is not enough of a bonanza to motivate recruitment agencies to diversify into temporary recruitment, then perhaps the value of temporary talent is better illustrated by the following factors that will incentivise this sector further to tap into this lucrative revenue stream:
Cost-of-Bad-Hire
The British Chambers of Commerce’s recent survey revealed that 40% of companies incurred recruitment costs of more than £2,000 per new hire. This cost is not significant enough to persuade employers to turn to temporary workers to save money, but we think this point of view will change dramatically considering that the cost of a bad hire is an extortionate £50,000, and this does not include the soft costs sustained through reputational and relationship damage, loss of revenue and productivity.
So it makes sense to negate the risk with a ‘try-before-you-buy’ model that utilises temporary talent. If the temporary worker fits the culture and contributes to the bottom line then they can stay on as a full-time employee, or decide that perhaps contracting is a better fit for them. This win-win solution is on the up and is being compounded by the skills shortage.
A Temporary Skills Gap
Set to continue as the greatest challenge to business growth, the UK Government currently spends more than £4billion a year on adult skills provision in England. Companies are deploying their own apprenticeship and training programmes, as well as school outreach initiatives to try and manage future needs. So it makes sense that contractors can help organisations to jump the skills gap.
Using contractors is a clever way to train employees and it is quid pro quo as far as contractors are concerned, with the majority of them saying that they also learn new skills through their temporary assignments.
If a recruitment agency does not want to take the plunge by adding temporary workers to their books, they could be well-placed to concentrate on a niche contracting market that leverages a key skill shortage.
A Social Talent
A large talent pool that can be accessed with speed and efficiency is key to success in the temporary recruitment game. Social media provides the power tool to achieve this and as these channels become more and more sophisticated, precise segmentation, be this by location, specific skill sets or industry, will ensure that the right talent is found, engaged and hired in record time.
Again, this is not a one-way-street. With the use of hashtags, online discussions and social content, candidates can find recruitment agencies and follow the conversation, which could ultimately lead to a contract later down the line.
Video apps and other integrated facetime technologies also provide the opportunity for recruiters and freelancers or temporary workers to connect personally. This means the evaluation process does not lag behind the candidate sourcing process. This is an important element for those agencies specialising in scarce talent. Because we all know the early bird catches the worm.
Ultimately, it is in the best interests of agencies to delve into this market. There is also an opportunity to forge relationships with umbrella companies, who can take over the process after a contract is signed to take care of the hassle associated with temporary and self-employment for their candidate.
So to all agencies considering joining us for the ride, we say welcome on board!
