Economic factors impacting the recruitment industry
The global recruitment industry has been impacted by a number of economic challenges, including the COVID-19 pandemic, inflation, and the increased cost of borrowing.
Some cite Covid as the key driver of the issues. However, the truth is that many of the challenges that economies and societies around the world face began long before Covid became a household word.
In many cases, the pandemic has simply accelerated trends that were already apparent before it disrupted the daily lives of practically everyone across the globe.
For example, many worked remotely before Covid, however, we have seen far wider acceptance of remote working by many businesses that did not embrace the practice before.
In the meantime, other more immediate problems have popped up making Covid seem something of a distant memory. Conflict in Europe, geopolitical tensions in APAC, the cost of living crisis and increasingly alarming impacts resulting from climate change.
Out of the disruption wrought by these evolving events, some economic sectors have seen demand rise, and in some cases, it has grown astronomically.
High-growth industries with increased demand for workers
Leading job board, Indeed, suggests jobseekers should target such sectors as they are fast growing. This means they offer significant opportunities for recruitment businesses to exploit:
Information Technology – the IT sector is constantly evolving, and there is a high demand for skilled IT workers. Remote working and the growing use of online services are increasing the use of technology in all aspects of our lives, from business to entertainment. Three key areas are the Data Science industry, Cyber Security and Artificial Intelligence (AI).
- Online shopping – accelerated by Covid, people are increasingly looking for ways to save time and money, and online shopping is a convenient way of doing both. Grocery delivery has proved to be a winner for many consumers, increasing demand.
- Health and fitness – the sports clothing, equipment and software sector has experienced growth, as people look to stay fitter when home working by staying physically active.
- Green manufacturing and energy – green manufacturing and energy businesses are growing rapidly, due to the increasing demand for sustainable products and services, and the need to reduce the impact of humans on the planet.
- Safety equipment and supplies – the personal protective equipment (PPE) market has seen incredible growth, because of Covid, increased standards of workplace safety, and the need for businesses to reduce occupational health risks and protect employees from injuries.
- Telehealth services – the digital health sector is growing rapidly through the use of high-speed internet and remote communication and video technologies. With some nations experiencing shortages of qualified and trained medical practitioners, online consultation and diagnosis are an increasingly popular way of allowing more people to be treated by fewer medics. It also allows people who live a long way from experts in specific branches of medicine to get specialised help.
- Online takeaway food ordering and delivery – the growth of online food ordering and delivery has been accelerated by Covid, and the convenience of delivery has become a persistent habit that many have embraced.
Increasing recruitment agency market penetration into growth economic sectors
For agencies already operating in these sectors, here are some good ways to increase success. For those considering entering the market in some of these sectors, here are some points to focus on to ensure that you have put in place the groundwork required to succeed.
- Truly understand the sector and the skills needed – in order to be successful, recruitment companies need to understand the way a sector works so it can provide credible recruitment services to clients. This means staying up-to-date on the latest trends in the industry, as well as the skills and qualifications required for the different jobs available.
For example, a recruiter specialising in the IT sector should understand the specifics of software development, data science, AI and cybersecurity so that it can competently recruit workers with the right skills.
- Build relationships with businesses in target sectors – a recruitment business needs to build strong, trustworthy relationships with businesses in the target sectors. Such relationships enable it to fully understand the hiring needs of clients and to efficiently find suitably qualified candidates for their open positions.
There are a few different ways to market recruitment services to a specific sector or niche to build relationships with businesses. A good way is to attend industry events. Another way to build relationships with target sector businesses is to join industry associations.
Building close relationships with businesses enables recruitment companies to gain valuable insights into the hiring needs and successfully find qualified candidates for open positions.
- Use RecTech effectively – RecTech has become an indispensable tool and when used effectively is a source of competitive advantage. A recruitment business that masters the use of technology can accelerate and smooth out the process of identifying, connecting up with, and selecting qualified candidates.
For example, recruiters can use online job boards, social media, and an Applicant Tracking System (ATS) to connect job advertising and candidate applications, minimising the need for manual activities and maximising software automation and the use of Artificial Intelligence (AI) powered tools.
In the back office, ETZ software offers a very effective means of streamlining the processes of timesheets, onboarding document management, and business intelligence.
Streamline your agency back office 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 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.