State of Recruitment: How Hiring Reflects Recovery

This post is part of a series in which LinkedIn Influencers analyze the state and future of their industry. Read all the posts here.

I have been in the recruitment industry for over three decades, as a consultant, manager, owner and investor. What makes this industry so unique is that it’s generally the first to struggle in a recession and the first to pick up in a recovery. When the economy took a turn for the worse in 2008, many recruitment firms who had known nothing but success found themselves in a real struggle for survival as companies simply stopped hiring. I had actually experienced this back in the early 90’s with my first business Alexander Mann – at one stage our end of year profit was less than the amount I spent on petrol.

My business invests in recruitment companies and the message from all of them over the last year has been clear – the jobs market is picking up and the battle to attract talent has become fierce. The recruitment industry is now predicted to surpass its pre-recession turnover this year, which is a clear indicator of the upturn in the economy. More and more companies are creating vacancies and taking on staff, while employees are now actively looking to move jobs.

But this doesn’t mean we can rest on our laurels. With the competition being so fierce, companies need to work harder than ever – and this means moving with the times.

The reason the recruitment industry is the first to recover is because it is a very competitive market and many businesses research and develop in less busy periods. Historically, the recruitment sector was always about who you knew and the strength of your contact book. All of that changed with the arrival of the web and the successful recruitment firms are the ones which adapted to this.

Many people believed that the sector would fall away due to the internet. Online job portals were seen as a threat to recruiters, but in reality they have made the hiring process a lot more efficient. I am a firm believer in embracing change rather than fearing it, and the best companies will always look to evolve.

Technology refuses to stand still for anyone and we are now looking at a move away from PCs and laptops to a world where people are in constant contact through mobile devices. Mobile phones currently account for over 17% of global internet usage, and this is growing sharply each year.

The pace of everyday life means that people want to be able to get as much done as they can, and today's smartphones allow for this to happen. From a recruitment perspective, hiring companies want to be able to screen people almost instantly, and candidates want to apply for jobs as easily as possible.

LinkedIn, which is one of the biggest recruitment portals in the world, sees 38% of its monthly visitors come through mobile phones, and this is another indication that the recruitment industry is getting smarter and ahead of the trends.

However, it is important to remember this cannot be a stand alone strategy. The vast improvements in technology have been tremendous but at its heart, recruitment always will be about people. Those who are able to build and maintain relationships with both clients and candidates will always be the ones that are most successful.

Photo: Author's Own

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Enjoyed this post? Read what other Influencers had to say:
? Alistair Cox on the State of Recruiting: Powering the World of Work
? Louisa Wong on the State of Recruiting: Imagine a World Without Headhunters