Bullhorn Surveyed 800 Recruiters. Right here Are Their Predictions

As we enter the second half of 2020, the start of the yr already appears like a distant reminiscence. A lot has modified so shortly, and one may assume the priorities and challenges for staffing and recruiting companies at this time are worlds aside from what they have been simply six months in the past.

Whereas there is not any doubt that the panorama has modified dramatically, the trade continues to be all about folks. In that sense, most of the core challenges, priorities, and pathways to success stay unchanged.

To find out the complete influence of the COVID-19 disaster on staffing and recruiting professionals, in addition to their outlooks going ahead, Bullhorn surveyed greater than 800 professionals on the finish of Could. Listed here are a number of the prime findings.

The Monetary Affect of COVID-19 on Staffing

It is clear that COVID-19 has dramatically altered the trade, however precisely how have its results manifested? Understandably, a lot of the dialog has centered on the monetary ramifications for the trade and the economic system as a complete. Whereas our findings definitely replicate financial hardship, a large variety of additionally expressed some optimism in regards to the future.

First, the great — and maybe shocking — information: almost one-third of staffing and recruiting professionals report that enterprise efficiency has improved or remained the identical in comparison with this time final yr.

The dangerous information: 28 p.c of reported a extreme dip in efficiency, with income decreases of a minimum of 30 p.c. Naturally, the staffing trade comprises quite a lot of companies, and the kind of staffing enterprise, sectors of specialization, and area all contributed to efficiency over this time. Companies specializing in hospitality and journey have been hit significantly arduous, with 45 p.c reporting extreme losses. In regard to staffing sort, everlasting staffing companies have been way more doubtless than their contract and momentary staffing counterparts to report a significant lower in enterprise (42 p.c in comparison with 24 p.c).

Staffing Companies Hit Laborious by Layoffs and Furloughs

Staffing firms, like many different companies, have needed to scale back their inside workforces because of COVID-19. In truth, nearly half of all staffing companies have performed layoffs.

Curiously, everlasting placement companies are the most probably to have retained all employees (49 p.c, in comparison with 40 p.c of temp and contract companies), although they’re additionally the most probably to have seen a lower in efficiency.

In fact, firm dimension additionally performs a task. The smallest companies (1-10 salespeople and recruiters mixed) have been twice as doubtless (54 p.c) to retain their whole group than the most important companies (28 p.c).

On a worldwide scale, UK companies represented a stark distinction to their worldwide friends: 82 p.c of UK companies laid off a minimum of a few of their workforce. In North America, by comparability, 46 p.c of companies have laid off or furloughed workers.

Priorities and Challenges: What Has Modified and What Hasn’t

Initially of the yr, Bullhorn surveyed greater than 2,000 staffing professionals to find their prime priorities and challenges for the yr forward. Predictably, a lot of these priorities have shifted. For instance, 77 p.c of cited the expertise scarcity as their prime hiring problem at the start of the yr, making it the highest problem by a landslide. Now, it would not register as a prime problem in any respect.

Whereas staffing firms might face new challenges, their prime priorities have barely budged. At its core, the staffing trade is about relationships — with candidates, purchasers, and friends — and people relationships nonetheless decide staffing success. Going into 2020, staffing professionals mentioned that managing candidate and shopper relationships have been the highest areas they wanted to deal with, and so they stay prime priorities now. The largest shift: Candidate and shopper relationships have swapped locations as the highest two priorities for staffing firms. Consumer relationships at the moment are the No. 1 precedence, with 45 p.c of citing it as a prime focus for the rest of the yr.

Candidate relationships, the No. 2 precedence for the rest of the yr, are nonetheless important to staffing enterprise success. Whereas unemployment has lowered or erased the expertise shortages in lots of markets and recruiters have needed to change their outreach methods accordingly, candidates are nonetheless on the coronary heart of any staffing enterprise.

Controlling spend36 p.c) and optimizing distant work (34 p.c) at the moment are prime of thoughts for, whereas neither purpose registered as a prime precedence going into the yr. One-fifth of additionally reported reassessing their enterprise fashions. Businesses are entertaining plenty of choices on the subject of reimagining their companies, from serving new sectors to altering up their service choices. Particularly, companies have reported a rising demand for consultancy providers as employers look to staffing companies for steering in navigating the present panorama.

Trying Ahead: Staffing Companies Say the Worst Is Behind Us

The moved previous of the bulk imagine we have moved previous the height of COVID-19’s financial disruption and that the economic system will enhance this yr. Roughly one-quarter of count on issues to choose up within the subsequent three months. Enterprise efficiency in the course of the pandemic had no influence on this outlook: Respondents who’ve seen an enchancment in income and those that have been hit the toughest have been equally more likely to count on the economic system to enhance. Notably, only a few predict a sustained recession or despair. Simply 9 p.c count on the restoration course of to begin within the second half of 2021 or later.

Businesses are responding to the brand new panorama by investing in and using recruitment know-how, in each predictable and fewer apparent methods. Unsurprisingly, video interviewing and videoconferencing options have seen the most important spikes in exercise, with a near-universal (91 p.c) adoption uptick by staffing and recruitment firms. Videoconferencing additionally falls into a bigger pattern: Businesses are more and more leveraging instruments that facilitate communication and relationship-building with candidates, purchasers, and inside groups. VoIP (25 p.c) and SMS (24 p.c) replicate this new emphasis on versatile modes of communication.

The opposite know-how options to see rising adoption might replicate a must make higher use of restricted assets. Greater than 1 / 4 of companies have ramped up their use of analytics because the rise of COVID-19, to raised perceive their efficiency and make good selections about the place to speculate future assets. Respondents additionally reported a rise in using automation and synthetic intelligence. With a thinner margin for error than prior to now, automating time-consuming handbook duties to unencumber assets has by no means been extra necessary.

What lies forward for staffing and recruiting firms? We’re cautiously optimistic that we’re observing a gradual incline towards normalcy for the trade. As companies reopen, we’ll control key components that influence trade efficiency. How will reopening influence the economic system total and staffing companies specifically? With the quantity of recent instances various dramatically from state to state and nation to nation, will the area play a much bigger position in enterprise efficiency? It is robust to say proper now, however we’ll proceed to watch the state of affairs intently.

Bob McHugh is the senior content material advertising supervisor at Bullhorn.

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