The recruitment industry is in good shape after a mammoth 2015 and this year’s growth is forecast to be over 8%, taking the industry beyond £34bn in sales, according to REC. But growth creates its own problems. Retaining current staff members and building strong teams in a market that is booming with opportunities is becoming tougher, as is employee loyalty. Where the employee culture has been based purely on financial reward, staff retention is a difficult task.
From training to career progression, and flexible working to innovative incentives, in the first instalment of this two part series, James Payne, Head of Business Development Bond International Software, discusses industry concerns regarding staff retention, despite the recent financial boost.
Recruitment in 2016 – what does the year look like?
The improvement in employment figures throughout the past year led to an impressive £31.5 billion turnover, labelling 2015 as the best year overall for the recruitment industry. In addition to the boost in sales, 83% of agencies reported a noticeable increase in net free income over the course of the year. However, despite last year’s financial improvement, 44% of agencies believe that financial development within the industry is a major pain point, sharing a recognition of the problems this growth can create in the coming year. According to the APSCo Deloitte UK Recruitment Index 2015, agencies are set to face employment challenges such as growing head counts, the ability to retain talent and being able to build a strong management team.
Download our eGuide to discover best practice for career development and progression of all levels of staff
With employment rates improving and employees and candidates being more assertive in their career decisions, it has become more imperative than ever for agencies to maintain a certain level of professionalism. By implementing training and offering educational opportunities, employees and employers will be able to map out and provide a clear career development path. Alongside this, the ability for agencies to shift from short term targets to longer term business objectives will encourage employees to look beyond immediate financial benefits and instead focus on future career development.
Understanding how to make the leap from simply offering employees the basic salary and great commission to a level of professionalism that is on par with the finance, law and HR sectors is not as simple as snapping your fingers.
In the second instalment of this series find out how agencies can implement new staff retention strategies such as understanding how to ensure career development, adapt to new methods of working and create an employee friendly culture within and outside the workplace.
To download the staff retention eBook please click here.