With the growing popularity of temporary workers, a high turnover rate is plaguing the UK’s recruitment industry. It has become crucial to ensure that companies are able to recruit quality talent.
Recruitment in the UK is directly affected by the country’s economic development in terms of GDP. In November 2006, the annual industry report from the REC stated that contract recruitment was growing at a significant rate of 6.4% and was estimated to be worth £21.6 bn in the period ending March 2006. Ten years back, this figure was just £10.5 bn. The industry has grown over a short space of time contributing significantly to the economic and social well being of the UK.
With the industry booming, the need for good recruiters is critical. Recruiting has become similar to a sales role where targets and revenues are applicable. Owing to skill shortages in certain sectors such as construction and engineering, a recruiter who can attract and tap talent efficiently can easily make a small fortune when he gets it right.
The recruitment sector has become an outsourcing process with a demand for temporary yet capable staff. There are often discrepancies between the pay received by a temporary employee and a full time employee. Nursing auxiliaries of the NHS are often paid more for a nights work than a trained staff on duty at the same time. A mismatch between targets set, expectations and money spent with relation to the talent required to deliver a quality output also exists. For example, departments such as HM Revenue and Customs hope to save £105m by staff cuts and, at the same time, spend £106m on consultants, all in the name of efficiency.
The demand for outsourcing talent has lead to the growth of a number of tertiary industries. Companies like Hydra, a leading payroll and accounting provider in the recruitment industry has invested a good deal on people and infrastructure hoping to translate this into profits for the company and its clients.
The modus operandi of recruitment companies has changed over the years. Companies now recruit extensively using the web. This, however, has not reduced the requirement of recruiting companies. Recruiting companies constantly seek innovative ways to fill skill shortages. One solution is influx of skilled workers from Eastern Europe. These workers are often willing to do jobs that British workers might baulk at. Like the Portuguese workers who were part of a 1300 workers team willing to cull birds having the H5N1 virus at a farm in Holton Suffolk.
In order to curb the gap that exists between domestically growing talent and importing it, industry site based training is being started. This training is being offered by the new National Skills academies for Construction. It heralds an employer-led approach to training and covers the entire supply chain training onsite. This is a way to increase the skill standards of local people and to develop sustainable communities in the process.
Diana is a financial consultant who manages portfolios of Business Credit Card Advance. Her key areas are trading in stocks, working capital loans, low-cost funding solution etc.
