Economic upturn could dramatically affect growth of perm recruitment agencies
The improving economic climate is causing skills shortages which will create a new and challenging environment for agencies up and down the UK, says the Director at industry leading recruitment finance specialist, Simplicity.
Having led the company through the recession, David Thornhill has seen first-hand the multitude of issues that recruitment business have faced so far - but he warns that more trouble is just around the corner, stating, “If your firm hasn’t felt the effects of the “recovery” yet; prepare yourself for troublesome times. We see every day how businesses are struggling with their cash flow management and just because we seem to have seen the end to the recession, recruitment business owners should by no means think that all is rosy in the recruitment world.”
With a more buoyant economy comes elevated confidence which, in turn, leads to an increased demand for workers and at the moment, your firm will be feeling the positive effects - more clients and more jobs to fill - but what happens when you can’t find suitable candidates for the roles you’re advertising?
Higher demand, fewer suitable candidates
The latest ‘Bank of Scotland Report on Jobs’ has shown that August saw the sharpest deterioration in the availability of candidates for permanent jobs since the survey began almost 12 years ago. Meanwhile, despite the lack of job-seekers, Scotland's labour market has continued to go from strength to strength.
It’s a similar story across the UK - APSCo has revealed that professional recruitment firms now have 22% more vacancies on their books than this time last year. The news comes as the Treasury’s GDP growth forecast for the UK economy now stands at 3%, still significantly higher than the 1.8% expected at the beginning of the year, albeit marginally lower than last month (3.1%).
With the permanent placement market looking as though there may not be enough quality candidates available to fill an increasing number of vacancies, there will be massive competition between recruiters to find the best people available. With this in mind, recruiters will want to be spending ALL of their time on sourcing and winning the best talent and not wasting it on non-fee generating areas of their business.
Simplicity customer Derek Ludlow CEO at McBarron Wood International is certainly of that opinion. He says, “I don’t want to have to spend time worrying about my back office systems. I need to be spending time with existing clients and prospects, without the worry that the rest of the business is running smoothly. That’s where Simplicity comes in, they give me the time I need - as well as 100% funding on my permanent placements.”
Indeed, when it comes to supporting recruitment agencies, Simplicity really are in a league of their own. Their service can be tailored to suit the needs of your business - so whether you need to free up time by outsourcing payroll and back office or have problems ensuring that there’s enough cash in the bank to pay your own staff each month, they can free you of your burdens so that you can focus on growing your business and becoming more successful.
Of course, a hitch that all recruitment businesses can face is a slow-paying client. With candidates becoming more and more scarce, when an agency does find a suitable person for a job, they certainly do not want to have to wait 30 days for payment.
100% finance on your perm placements and cash flow management
Simplicity’s 100% recruitment funding solution solves this problem, allowing access to - what would otherwise be long-awaited cash. As David Thornhill says, “Immediate access to cash is one of the benefits that our customers value the most - it allows them to grow their business more quickly as they don’t have to put off growth plans because of unreliable debtors, leaving them in control of their cash flow and their business.”
Essentially, cash flow management is at the heart of every recruitment business - if funds are squeezed or slow to materialise, a business owner can find that they are consumed with worry over the finances; worries that can be alleviated by Simplicity. On top of 100% recruitment funding for permanent placements, the recruitment finance experts provide debt protection and an online management system - giving you control of your business and ultimately, peace of mind.
David Thornhill says, “Simplicity really does act as a strategic partner for recruitment business owners. Thanks to an unblemished track record and our award winning customer service, our customers trust us and rely on us when it matters the most. Whether you want immediate access to your management reports, a quick look at your margins or an overview of your business performance, it’s there at the touch of a button. Our customers offload a burden and we eliminate their risk - it’s as simple as that.
And they must be doing something right! Simplicity has just celebrated its 10th anniversary - at a time when many thousands of businesses failed, Simplicity bucked the trend and helped recruitment agencies across the UK to do the same. David Thornhill says, “Perm or temp recruiter, we’ve never let any of our customers down. The reality is that we depend on the success of our customers to ensure our own - it’s a real partnership.”
Whether you're looking to start up your own recruitment agency or you already run a successful recruitment business and want to take it to the next level, Simplicity can help you to achieve your objectives. To outgrow your competition and beat them to all of the best talent, get in touch today.