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Recruitment Industry Supporting Economy Recovery

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    Recruitment Industry Supporting Economy Recovery

    Recruitment Industry Supporting Economy Recovery

    Recruitment Industry Supporting Economy Recovery

    Reports from a recent recruitment industry study by Recruitment & Employment Confederation (REC) shows recruiters “stepping up through the pandemic to keep the wheels of our economy turning”. With recruiters urging employers to make recruitment a priority issue.

    Neil Carberry, REC CEO, said: “Employers that treat recruitment as a priority issue because of the value it adds unlock competitive advantageBringing in the best talent boosts productivity – especially where organisations work with recruitment experts. Companies wouldn’t go to court without the best lawyers – they shouldn’t hire without the best recruitment and staffing service.”
    REC reports professional recruiters increase the UK productivity by 7.7 billion each year. Using their expertise to help get people into the proper role and companies. The study shows professional recruiters sustains £86 billion in gross value added across the economy. More significant than either accounting or legal industries with an equivalent of 4.3% of GDP.
    REC also warns of the financial concerns of bad hiring. Approximately half (52%) of people in the UK say businesses are recruiting efficiently. However, this may be implying that businesses could achieve more.  

    “The overall cost of a bad hire to a business is estimated to be three times higher than the salary paid, so getting recruitment right has the potential to be a huge driver of recovery,” the REC stated. “We’re calling on government to work with the REC on the plan for jobs, ensuring that all forms of employment are considered in government thinking, so families all over the country can feel the benefit that good recruitment brings. From temporary work to permanent roles, at home or a workplace, recruiters have stepped up through the pandemic to keep the wheels of our economy turning. And they will be more important than ever as we bounce back, helping government, businesses, and employees build a better world of work.”

    28% of larger businesses are starting to employ people who live a greater distance from the office—adopting a more flexible approach due to Covid-19. As employers open themselves up to a larger pool of talent, this can benefit many workers. Additional data from REC’s study into the economic and social impact of recruitment shows that twice as many (300,000) unemployed people using the industry managed to secure a permanent role. 78% of those who found a position through recruiters said it was a good quality match. Whilst 63% said working with a recruitment professional helped increase their recruits’ diversity.

    “The report also shows the difference professional recruitment firms can make to diversity and inclusion, which more employers must now step up their efforts on,” Carberry said. “Recruitment professionals really can make the difference for their clients on improving equality of opportunity and diversity at work.”

    Promising Growth For The Recruitment Industry

    The ONS recently reported that the unemployment rate had decreased for the first time since the pandemic hit; our figures continue to represent this rate with an overall increase of 3.58% in recruitment activity. As we work our way through the roadmap to lifting the restrictions, it’s looking promising. We have seen a rise in hospitality agencies already gearing up for the come back in April and May, which the Government Restart Grant is also helping. The Perm market has continued to show growth with an increase of 16.56% this month.

    Download the latest Recruitment Activity Report here