February 2024 - It's official. As of news this week we're in another recession (Q3 & Q4 2023). As if we didn't know already. The comforting thing is, its already old news. We're now 2 months beyond the end of the measurement period and we've heard rumours that signs of life and some 'green shoots' are already popping up.
However, it takes more than a little thing like a recession to keep the recruitment industry down. Even in the horrible economic environment that was 2023 a record number of new recruitment businesses were registered in the UK. Just under 9,000 new recruitment businesses launching into a still-growing £43bn market (spend on Rec agencies, 2023), to take their own share.
It's a truism that economic chaos really can be the mother of invention, especially when it comes to a sales orientated, people-led industry like recruitment.
Fed up with your boss, or bonuses being cut, or stupid 'corporate' decisions being taken? Set up your own agency! Fed up with only getting a small share of the fee pot? Set up your own business! Lost your job through redundancy due to the economy being in the cr*pper? Set up your own business!
It's the story of evolution and entrepreneurship that's driven the world of recruitment since Greg Savage was in nursery school. Bob was right, chaos really can be your friend, if you're willing to go for it.
Even with around 80% of the total of c.30,000+ UK agencies having a turnover of less than £1M, this flaky economy and continual chaos and churn in the recruitment market makes sure we all need to stay at the top of our game. More competition to worry about, fewer perm vacancies and quality candidate availability still low. How do you make sure you stay ahead of the game and win when others might fail?
How do you attract, and retain the best talent in a tough market like this? Especially when a lot of them are more reluctant than every to make a change given the uncertainty that's out there (unless they want to join the 9.000 of course - either way, you're unlikely to recruit them into your team, ...without some help).
The recruitment businesses that will win biggest in this tough, chaotic recruitment landscape are the ones that work harder, smarter and faster. The ones that invest, that stick to their knitting and hire, and retain, the best talent to make sure they convert a higher proportion of fewer vacancy opportunities.
When clients 'want perfect' (another juicy quote nugget from a recent webinar), you need great recruiters on your team that understand that, and can deliver it.
If those 'green shoots' are the real thing, with that other truism of 'recruitment is always first out of a recession, those that invest in finding the best talent in the current 'chaos' will win even sooner than you think.
We know, because we're working with quite a few of them.
Get in touch for a discussion?