The Covid19 pandemic battered the UK economy and has likely changed the world of work forever.
Millions of jobs were saved as employees were placed on the Coronavirus Job Retention Scheme (furlough scheme) however many were not as lucky. They were made redundant thanks to pandemic lockdown measures. Some businesses were not able to survive; unable to recover from such financial instability.
Meanwhile, remote or hybrid working has become the standard model. Beginning as a necessity, it has evolved into common practice. Businesses have come to realise the benefits this arrangement has for individuals and for themselves. Remote working is a key weapon in winning the war for talent amid significant candidate shortages.
The recruitment industry is crucial for the recovery of the UK economy.
Data suggests that nearly £1 in every £20 that’s contributed to the British economy is supported by the recruitment industry. Over 6 million workers (a fifth of the workforce) found their current job through working with recruitment businesses.
The REC (Recruitment & Employment Confederation) has published data that supports the assertion that the recruitment industry is a critical driver in the recovery of the UK economy.
Recruitment is a catalyst for UK productivity.
The recruitment industry has a direct influence on both the competitiveness and the productivity of the UK economy. Not only does it support the economy by adding monetary value, but it also ensures that employers can find the talent they need to drive their businesses forward.
The REC study found that
- £7.7 billion of productivity is unlocked by the industry every year.
- It improves the quality of candidate/employer matching; 77% of companies said that the hires made through a recruitment agency are a good cultural fit.
- Nearly 1 million people are placed into work every day as temporary workers, while 19% of companies hiring these workers state they wouldn’t be able to operate without these hires.
Recruitment creates opportunities and promotes a more inclusive labour market.
It was found that the recruitment industry helps to facilitate social mobility. It supports individuals seeking their first job, helps talent back into work after periods of inactivity, and helps develop careers by showing job seekers routes into training or by marketing transferrable skills.
The REC study found that
- Every year, 300,000 people use the recruitment industry to transition into work from unemployment.
- Every 21 seconds an out of work person finds a permanent role through a recruitment agency.
- 30% of temporary workers believe that the recruitment industry afforded them a better opportunity.
Recruitment helps create a more diverse and inclusive workforce.
There are undoubtedly huge strides to be made in ensuring the equity of opportunity. The under representation of diverse groups within the workforce is an area that still requires vast amounts of work.
The recruitment industry and those who work within it, are in a strong position to ensure that diversity is at the forefront of their own teams and within the recruitment policies of their clients.
Recruiters can help to remove discriminative barriers. They can work with organisations, helping them to implement and ‘live’ the policies that build a more diverse talent pool. Diverse workforces drive productivity. Those organisations with inclusive and diverse teams have been proven to be more productive, successful, and engaged. Not only is actively working to create a diverse workforce the right thing to do, but it’s also the key to excellence and improving a company’s bottom line.
The REC study found that
- 62% of businesses said that working with a recruitment agency has helped them increase the diversity of shortlisted candidates.
- 63% of businesses said that working with a recruitment agency has helped to increase the diversity of new hires.
Recruitment helps quicken UK economic recovery.
Throughout the pandemic, the recruitment industry was essential in keeping the economy ticking over. Businesses were forced online; pivoting organisations were in need of tech talent quickly to meet their changing needs.
Not only were recruitment professionals on hand to source the talent needed, but to advise on the skillsets needed to perform the work.
Moving forward, the recruitment industry will help those made redundant find work again, placing them in new jobs amid a changing environment. It will also advise employers who are working to adapt to change.
Long term remote working and managing hybrid teams are challenges that many organisations won’t have encountered before. They are adaptations thrown up by the pandemic, but ones that are here to stay. Recruitment professionals are able to guide business leaders through these changes and help manage the expectations of both client and candidate.
Recruitment helps keep unemployment rates low.
High rates of unemployment have critical implications for the UK economy. The work of the recruitment industry helps to keep unemployment low by providing flexibility within the labour market. Recruitment experts have a broader reach and enjoy professional connections with potential candidates across the UK. This promotes a more geographical approach to recruitment; one that is agile and can facilitate placing individuals in roles without regional restrictions. Proximity will no longer be a barrier to talent.
The REC study found that
- 28% of large businesses said they are likely to consider hiring people who don’t live close to the office.
- 45% of businesses said they have experimented with more flexible working hours.
- Remote working could boost UK productivity by as much as £9 billion.
Recruiters know what is important to candidates.
Employees value learning and the opportunity to undertake professional development. While 84% of employees plan to upskill their workforce, 52% of workers surveyed said that they completed less than 5 hours of training per year in their current job.
At Ignite, we are tech, digital, and data recruitment specialists. This means we know industry best practice. We are able to advise our clients, both on the skills and certifications that candidates should possess, but also the opportunities they should be extending to their employees.
Read our recent blog on what employers can do to support professional development within the tech sector.
Are you looking to build out your tech, digital, or data teams? We can help.
Read more about how we work at Ignite, and how we can help find you the people to push your business forward.
