Welcome to Issue 13 of Recruitment Trends & Industry Insights
Joanna Oakley CCWP MCIPD
Fractional COO : I help recruitment agencies & inhouse TA Teams gain greater operational control and reduce costs.
Hi I'm Joanna Oakley CCWP MCIPD . With over 20 years of experience in the staffing and recruitment industry, I am a Transformation and Change Consultant and the Owner/Director of Argylestone Consulting Ltd.
I help recruitment agencies gain greater operational control and reduce costs.
Happy New Year, Everyone!
I hope this message finds you well and filled with optimism for the year ahead. The holiday season, whether you celebrated Christmas, Hanukkah, Gatan-sai, or another cherished tradition, offered a time for relaxation, fun, reflection and connection. I trust it was a period of joy and togetherness for you and your loved ones.
As many of you I am sure will have noted from this weeks Newsletter header, we are now on issue 13 and for 2025 I have gone green (partially inspired by last years tree planting efforts and the feeling of over indulgence from the last fortnight's festivities!!) Your continued support and engagement have been instrumental in my journey, and for that, I extend my deepest gratitude for sticking with me.
2025 holds the promise of new opportunities and adventures, I am hoping, for us all and I'm excited to share with you the latest industry insights from across the globe, but with a keen focus on the USA and of course UK markets as well as updates on the latest recruitment trends.
In the spirit of new beginnings, I wish you a year filled with health, happiness, and prosperity!
Trends
In 2024 SIA predicted that the global staffing industry would reach $635.3 billion by the end of the year. For of you who may have missed the full report, this week I thought we would kick off with taking a look at a snippet of the highlights from the Staffing Industry Analysts December Pulse Survey for the UK and their stats on the Global Gig Economy.
Key Findings:
Respondents reported a median 4% y/y increase in their UK temporary staffing turnover in October, up from -2% in August.?
Both professional and commercial temporary staffing turnover were up 2% on a median basis. Permanent placement down 8% y/y.?
The SIA asked participants, “What tactics are you currently using to either increase turnover or increase profitability?”?
12 companies provided open-ended responses to this question, shared in the full report. 50% of responses focused on sales/marketing/business development efforts.?
Average sales difficulty in October was 3.61, up from 3.38 in August (on a scale of 1 5), while average recruiting difficulty was 2.89, down from 2.95 in the prior survey.?
Overall, there was a net increase in new orders of 40%, up significantly from 6% in the previous survey.
To access the full report by Staffing Industry Analysts : UK Staffing Industry Pulse Survey Report: December 2024 Selected Highlights
Trends - The Gig Economy
The global gig economy was worth $3.7 trillion in 2023, according to new research by SIA. The lion’s share of revenue went to independent contractors, who earned 48% of the revenue total, or approximately $1.80?billion.
SIA’s definition of the gig economy?encompasses:
Revenue for temporary workers engaged through a staffing firm was $546 million in 2023 and represented 15% of the global gig?economy.
Industry Insights
As many of you by now will know, I assist recruitment agencies in reducing costs and streamlining operations to maximise growth opportunities. One key area I help leaders assess is their organisational structure, including understanding their span of control.
Understanding Organisational Structure and Span of Control
An effective organisational structure is crucial for a recruitment company's success, as it defines how tasks are divided, coordinated, and supervised to achieve organisational goals. Regularly reviewing this structure ensures that the recruitment company remains responsive to market changes and operational needs.
Any recruitment leader knows, the structure of an organisation profoundly impacts its efficiency as well as the well-being of its employees. A pivotal element in this structure is the "span of control," which refers to the number of direct reports managed by a supervisor or manager.
Optimising this aspect can lead to enhanced productivity and a more positive workplace atmosphere.
Understanding Span of Control
Span of control, or management span, denotes the count of employees directly overseen by a supervisor or manager. This span can be broad or narrow, each presenting distinct characteristics and implications.
Broad Span of Control
In a broad span, a manager supervises a large group of employees, resulting in a flatter organisational hierarchy with fewer management layers. This structure is particularly effective when:
Narrow Span of Control
Conversely, a narrow span involves a manager overseeing a smaller group of employees, leading to a more hierarchical structure with multiple management layers. This approach is advantageous when:
Determining the Optimal Span of Control
Both broad and narrow spans offer unique benefits and challenges. A narrow span allows for personalised guidance but can introduce bureaucratic complexities and increased administrative overhead. In contrast, a broad span promotes autonomy and reduces management costs but may lead to managerial overload and decreased individual support.
The ideal span of control is not a fixed number but should be tailored to a recruitment agencies specific needs, considering factors such as task complexity, employee capabilities, managerial workload, and the effectiveness of communication tools. Striking the right balance ensures efficient operations and timely decision-making.
Strategies for Optimising Span of Control
Regular assessment and adjustment of the span of control are essential for maintaining an effective organisational structure. It's also important to look beyond your front office recruitment teams. How is your payroll and credit control team structured? What do your compliance, PES, or contractor care team structures look like?
By aligning the number of direct reports with managerial capacity and organisational goals from right across the business, recruitment companies can foster a work environment that supports both operational success and employee well-being.
Implementing the following strategies can aid in optimising the span of control:
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By implementing these strategies, organisations can optimise their span of control, improve efficiency, and enhance employee engagement and satisfaction.
Understanding and optimising the span of control within an recruitment business is crucial for achieving operational efficiency and fostering a positive work environment. By carefully considering the factors that influence the ideal span and implementing effective strategies, recruitment companies can enhance not only productivity and also employee satisfaction.
Staffing Industry market growth predictions
The Americas: SIA predict the staffing industry will grow 5% in 2025 and 4% in 2026, potentially reaching a market size of 217.8 billion and 226.6 billion, respectively.
EMEA: SIA predict that staffing industry revenue will fall by -2% in 2024 but grow by 3% in 2025 and 4% in 2026. This is compared to the global growth figure of -2% in 2024 and 5% in both 2025 and?2026.
What’s Changing in UK Employment Law in 2025 – And What It Means for Your Business And Your Client's.
Following the publication of the the Employment Rights Bill in October 2024, the government has finally announced the start of a consultation period, alongside other key reforms that will redefine UK workplace fairness, flexibility, and accountability. Whether it’s new protections for employees, changes to statutory pay, or support for working parents, these updates will have a profound impact on employers and employees alike.
The (UK) Employment Rights Bill: What to Expect
The Employment Rights Bill, published in late 2024, is a bold move aimed at boosting pay, productivity, and job security. It includes 28 individual reforms that address key workplace issues such as:
Consultations on these measures are set to begin this year, with implementation likely phased out over the coming years. Reforms such as the unfair dismissal protections won’t take effect until at least autumn 2026, but the time to prepare is now.
Why This Matters: These changes represent a seismic shift in workplace rights. Employers in the UK should start reviewing policies, contracts, and training processes to stay ahead of the curve. Early preparation is crucial, especially as more details emerge during the consultation period.
Key Reforms to Watch in 2025
Pay Gap Transparency Large employers will soon need to report on ethnicity and disability pay gaps, alongside gender pay reporting. This step aims to highlight and address wage disparities across the board.
What This Means: Use this opportunity to embed transparency and inclusivity into your workplace culture. It’s not just about compliance, it’s about building trust and attracting top talent.
The Right to Switch Off While not legislated, a statutory code of practice will introduce the ‘right to switch off’ to ensure remote workers aren’t contacted outside working hours unless absolutely necessary.
What This Means: This is a chance to lead on employee wellbeing for both you and your clients. Consider how your business (and discuss with your clients how they) can create clear boundaries for work and personal time without sacrificing efficiency.
New Support for Parents The Neonatal Care (Leave and Pay) Act grants up to 12 weeks of paid leave for parents with hospitalised new-borns, in addition to existing parental entitlements.
What This Means: Review your parental leave policies and educate managers to ensure they’re prepared to support employees navigating these situations.
Higher Pay Floors As it does every year, the National Minimum Wage rises in April, with the National Living Wage increasing to ￡12.21. Younger workers will also see significant pay hikes, particularly in the 18–20 age group.
What This Means: This is a positive step for employees but may challenge businesses with tight margins. Proactive workforce planning is key.
Preparing for the Changes
The employment law updates are an opportunity to enhance your recruitment business practices while ensuring compliance. To stay ahead:
These changes aren’t just about ticking boxes—they’re a chance to show leadership, build trust, and create a workplace that thrives in 2025 and beyond. They are also an opportunity to discuss with your clients how they themselves are planning for these changes and what the impact will mean for them and their hiring needs over the next 12 months.
As always, I’ll be keeping you updated as these reforms progress. If you’re unsure how these changes might impact your business or need help navigating them, feel free to get in touch.
In my next edition I will cover the Fair Work Agency: what do employers need to know?
What I am reading
Much to my husbands delight, Father Christmas gave me the book titled "Football is for girls" by Rachel Oliver.
I love American Football. Back in my youth when we had the London Monarchs team in the UK I went to every game. For a time they had William 'The Refrigerator' Perry and Quarterback Brad Johnson (not at the same time) and were for a period, pretty reasonable and entertaining to watch. In 1997 however, the London Monarchs had rebranded as the England Monarchs. In 1999, they were replaced again, this time by the new Berlin Thunder. I had stopped watching by this point.
In 2015 I watched Amazon's "All or Nothing" and fell back in love with the game and the Arizona Cardinals and Bruce Arian's along with it. For me knowing who all of the players are and a bit about them, makes a game so much more enjoyable to watch and who doesn't love a big play.
With our NFL pass in hand we embarked on season after season of viewings. I cannot remember when exactly it was when the hubby got sick and tired of my frequent questioning and looked at me quizzically and asked "Do you actually have any clue as to the rules of this game and what is going on?"......
So here I am with my instruction manual in hand, preparing myself for the 2025 NFL season.
These days while I would cry into my cup of tea and say Arizona are still my team, I also love the Dallas Cowboys and the Jacksonville Jaguars (as they tend to come to the UK more frequently and I had a Florida based colleagues who was on their cheerleading squad).
I will swing back round in September and let you know if reading the book did me any good at all!!
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Did you know that the ability to lead change management is the #1 skill needed in leaders today? Yet only 35% of leaders effectively manage change (across industries), and 70% of change management initiatives fail. This is why bringing a true change management expert into your business during times of change and transformation is so important.
Whether your staffing business is based here in the UK or internationally, I'm here to help. Let's discuss your goals and how we can achieve them together! Don't hesitate to book a call with me using the link in comments to explore the possibilities. Looking forward to connecting and making a positive impact! BOOK YOUR COMPLIMENTARY CALL