Sometimes the Brutal Truth hurts, and sometimes it is completely ignored. Here at Jump Advisory Group, we bring you the facts and market reports that will open your eyes to the market and what is happening. We aim to enlighten you so you can make better-informed decisions, prosper and grow.
The Retention Conundrum in the First 12-Months.
Retaining recruiters in the UK during the first 12 months of employment has become challenging. The high turnover rate in this industry (43%) has raised concerns and prompted an examination of the factors contributing to this phenomenon. Several key reasons can be attributed to the difficulties in retaining recruiters during this crucial period.
Firstly, the nature of the recruitment profession itself is demanding. Recruiters are expected to possess exceptional interpersonal skills, multitasking abilities, and a deep understanding of the job market. The initial months of employment can be overwhelming for newcomers as they grapple with the steep learning curve associated with the intricacies of the recruitment process. The pressure to meet targets, source suitable candidates, and manage client expectations can lead to stress and burnout, resulting in a high attrition rate.
Secondly, the competitive landscape of the recruitment industry adds to the challenges recruiters face in their first year. With numerous agencies vying for clients and talent, recruiters often find themselves in a cutthroat environment. The pressure to outperform competitors and achieve success quickly can be daunting for new recruits. The need to build a strong network, establish credibility, and deliver results within a short timeframe can lead to immense pressure and frustration, which may drive talented individuals away from the industry.
Furthermore, organisations need comprehensive training and mentorship programs to address the retention problem. Many companies need to provide adequate support and guidance to new recruiters during their initial stages of employment. With proper training, it becomes easier for new recruits to develop the necessary skills and knowledge to excel. The absence of mentorship also denies them the opportunity to learn from experienced professionals, hindering their professional growth and job satisfaction.
In addition, work-life balance is often a concern for recruiters, especially in the first year. The recruitment industry is notorious for its long working hours and high-pressure environment. The demanding nature of the job can lead to a lack of personal time and a strain on relationships outside of work. This imbalance can lead to dissatisfaction and push recruiters to seek alternative career paths that offer a better work-life balance.
Organisations should prioritise implementing comprehensive onboarding programs to address the retention challenges faced by recruiters in the UK. These programs should include thorough training, mentoring opportunities, and ongoing support to ensure new recruits have the tools and resources to succeed. Companies should also promote a healthy work-life balance and foster a positive work environment that values employee well-being.
Improving retention in the first 12 months of employment poses significant challenges for UK recruiters. The demanding nature of the profession, the competitive landscape, inadequate training and mentorship, and work-life balance concerns contribute to the high turnover rate. By addressing these issues and implementing effective retention strategies, organisations can improve their ability to retain talented recruiters and foster a more stable and prosperous workforce. Remember, a recruiter only starts to generate profit after 12 months in the role.
The Temporary Workers Market Update.
The staffing industry is constantly changing and adapting. The latest ABU Market Monitor reported by the SIA has revealed some interesting insights into how temporary workers are faring in the current climate. Here are the top 7 points to take away from the report:
1) Temporary worker hours are down 13% compared to the same period last year.
2) Despite fewer hours, temporary worker revenue has remained steady.
3) Permanent placements have increased slightly since the same period last year.
4) Temporary agency worker utilisation is at a six-year low.
5) Permanent placements have seen an increase of 3%.
6) Permanent placements have seen an increase in pay of 3.3%.
7) Temporary agency worker pay has remained steady.
Clearly, the staffing industry is still seeing changes and shifts in the current climate, and recruiters must stay informed to educate clients.
The Labour Market Tracker via the REC
The recruitment market is going through a period of tremendous flux. The latest report from Recruitment & Employers Confederation (REC) shows that active job postings in the UK are still above two million despite the ongoing economic uncertainty.
Here are the key facts from the report:
What does this mean for recruiters? Here are seven things to consider:
Recruiters must be agile and ready to adapt to the changing recruitment landscape.
More Employees than Ever are Looking to Terminate their Employment in 2023.
It’s no surprise that employee exits are rising, according to a new study by People Management.
The findings suggest that many of those looking to leave their current role are realistic about their expectations and taking a considered approach to their job search. Almost 1 in 4 (23%) are looking to exit, up from 21% in 2022.
However, the report also highlights how employees seek advice from their colleagues and managers to ensure they have the best exit plan for their next move.
A fifth (21 per cent) of respondents to the PwC report said a key reason for leaving was needing to apply or learn skills essential to the employee. While as expected, a third (34 per cent) said they would ask for a pay rise immediately.
The report said employers who focus on career development and engage their staff to understand their feelings about the company had a higher retention rate.
The report highlighted that 99% of UK Hr managers and directors believe AI will improve innovation, automate routine tasks and boost productivity. However, it recognised that 32% said AI would impact their jobs in the next five years, but 47% were oblivious to the change AI will bring.
Finally, congratulations to Michelle Mellor, MREC, the new Chair for the REC.
We would love to hear your comments on the news we bring and on topics, subjects and issues you wish us to cover. Recruitment is developing at the fastest pace we have seen in the last 40 years, the next few years will be watershed years, and the decisions you make today will affect how you survive or thrive. If you need help or advice, then contact the Jump team. We are here to help.