A lack of quality candidates and too much administration are the biggest challenges to growth that the recruitment industry will experience in 2015. That’s the message from rapid recruitment software developer Mercury xRM, as it releases the latest results from its quarterly state of the industry survey.
Fifty three per cent of recruiters surveyed cited a lack of quality candidates and increased administration pressures as the biggest contributing factors to growth this year. Increasing competition, staff retention and a lack of clients were also cited as potential challenges this year.Despite these challenges though, recruiters say that the future of the industry is bright, with 73 percent of UK recruiters ending 2014 busier than they ended 2013. Additionally, only five per cent of recruiters think that 2014 was a bad year for business. The results have come from a straw poll of Mercury xRM's own internal recruitment network. Recruiters attending last year’s Recruitment Live exhibition were also surveyed.
The statistics come at a pivotal point for the recruitment industry after it was revealed late last year that UK unemployment levels again fell throughout the final quarter of 2014. This is further coupled with a number of UK industries reporting a significant decrease in the number of skilled applicants applying for vacancies.This downward trend in skilled applicants is generating tougher competition for the highest quality staff and turning businesses towards specialist recruitment agencies, best placed to fill highly skilled vacancies.
Mark Britton, Marketing Manager at Mercury xRM, explained what now must be done in order for recruiters to continue to grow sales and prosper throughout 2015. He said: “It’s great recruiters are finding themselves busier than they were last year. While there are a number of issues that need to be overcome in order for recruitment companies to continue to grow their sales throughout 2015, it is encouraging that our barometer shows high levels of optimism, within the recruitment industry.
“Although the outlook is positive it is now vital that recruiters work towards overcoming potential sales barriers. The skills shortage will undoubtedly continue this year and will affect a number of industries across the UK, forcing recruitment agencies to review their specialisms. Whatever happens this year, it will be the forward thinking agencies who adopt the latest technologies who continue to attract the highest calibre of candidates and clients”.
