AI and consolidation forcing a focus on highest quality candidates and recruiters

Uncertainty and the prospects for the recruitment industry

There are many factors and events that influence the job market, creating complexity and fueling uncertainty about the prospects for the recruitment industry and recruiters.

Recent years have included such macroeconomic factors as the Covid-19 pandemic, the cost of living crisis, heightened geopolitical tensions, and the increasingly disruptive climate emergency, as well as the associated economic problems that have ensued in their wake.

The tensions between nations are in stark contrast to the increasing domination of global enterprises as they operate across borders. For example, China, seemingly the world’s manufacturing powerhouse, is doing business with the global community, while rattling sabres with some of its key trading partners.

Meanwhile, global enterprises continue to break down barriers (and avoid tax!) as they disrupt established business models and shape the future.

Factors shaping the immediate future of recruitment

Three factors that have specific relevance to the world of work and that are likely to have a significant impact on the jobs market in the short term include:

• The talent gap
  The talent gap is already a major problem in many industries, and it is only going to get worse as the global economy attempts to grow and the demand for skilled workers increases. This is likely to lead to higher wages for skilled workers, as employers compete for their services. It could also lead to more automation and outsourcing as businesses look for ways to reduce their reliance on human labour. The talent gap is likely to be most acute in high-growth industries, such as technology and healthcare. These industries are hallmarked by innovation and are constantly evolving, and they require workers with specialised skills. As a result, businesses in these industries may be forced to pay higher wages or offer other incentives to attract and retain qualified workers.
• AI-powered job automation and assistance
  Despite widespread reservations, AI is already being used to automate a wide range of tasks, and this trend is only going to accelerate in the coming years. This is likely to lead to job losses in some sectors, but it is also likely to create new jobs in others. For example, AI is being used to develop new products and services, and it is also being used to improve customer service.AI is likely to have a significant impact on the job market in a number of industries, including manufacturing, retail, and customer service. In these industries, AI is increasingly being used to automate tasks that were previously done by humans. As a result, some jobs in these industries are likely to be lost. However, AI is also creating new jobs, such as those in the development and maintenance of AI systems, as well as providing some assistance, which will result in changing the mix of tasks required of humans for some existing jobs.
• Enterprise consolidation
  In response to rising operational costs and/or reduced demand, a round of merger, acquisition and streamlining is well underway. In some cases, enterprise consolidation is leading to job losses, as combined businesses are able to operate more efficiently with a smaller workforce. However, consolidation is likely to have a mixed impact on the job market. In some cases, it may lead to job losses; however, on the upside, in other cases, enterprise consolidation is leading to some new jobs as the combined businesses may be able to expand their operations.

Some takeaways for recruiters

As these factors play out, there is little doubt that for candidates, competition for jobs is going to be stiffer. The focus is going to be on outperforming on paper in terms of qualifications and certifications and more practically through experience and the possession of a verifiable track record of achievement.

One natural side effect is the cutting out of deadwood. Workers will retire or be released, with underperformers more likely to be let go as businesses seek to streamline headcount and optimise their workforces for efficiency and productivity.

For recruiters, this places an emphasis on agency operational processes and the quality of hiring. This means that recruitment businesses need to bring their ‘A’ game when it comes to search and selection.

• Improve recruiter search and selection skills
  Recruiters’ skills and judgement are essential for making sound hiring decisions and building relationships with candidates and clients.
• Implement search and selection RecTech
  RecTech tools automate tasks, find candidates more quickly, and make better hiring decisions. AI-powered platforms also help to identify top talent that might not otherwise be found.
• Adopt best in class back office RecTech
  The best back office RecTech tools streamline operations, ensure compliance, and track performance. This frees up agency resources allowing the business to focus on what it does best – finding and hiring great people.

Improve your agency’s back office RecTech with ETZ

The automation features of ETZ RecTech tools promote efficiency and have paved the way for the emergence of sophisticated AI NLP search and selection tools that are emerging to power the front side of agency operations.

ETZ’s leading timesheet and invoicing solution, streamlines the back office processing of your recruitment agency. Our complementary solutions, ETZ Comply for onboarding and document management, and Caspian for business intelligence give agencies further capability to streamline and uncover opportunities. To find out more call us on  +61 (0) 405 458 821 or book a demo.