The UK is holding back on recruiting in light of the political turmoil we have experienced recently. Brexit extension after Brexit extension and two General Elections in the space of two years has undermined our economy and businesses are holding back in many areas. No one knows what the outcome of all of this political unrest will mean for the UK both now, and in years to come, but what we know right now is that the vast majority of businesses are holding back on recruiting because of the situation we find ourselves in.
And rightly so, most will say. Why take on employees at a time when you cannot predict the future for your business? The cost of employing someone can fall into the tens of thousands once you have factored in the onboarding process and training that may be required. And whilst this may sound like a sensible precautionary step to take, how is this affecting productivity for UK businesses and working towards plugging the massive skills gaps that are being seen in certain areas of industry?
The UK economy is in a state of stagnation and productivity has fallen. In fact, the economy has suffered its worst three months for more than a decade, and employer confidence in the UK economy has dropped to the joint-lowest level since mid-2016.
A recent report from The Recruitment and Employment Federation (REC) stated that 74% of employers have little or no surplus workforce capacity, with this figure rising to 82% in large (250+ employee) businesses. Businesses need more employees, but the financial constraints are casting the final vote on whether these employers expand their workforce to give them the required capacity to maintain and improve productivity and output.
Short of waving a magic wand and making this whole messy situation go away, for many recruiters, their hands are tied. Recruiting fees are an essential part of the recruitment process, but can hinder the employment process if the economy is having an impact on a company’s business. If the fees are an integral part of what is making employers hold back, this is where the change needs to occur.
No employer minds paying recruitment fees for the right fit for their brand. They are aware of the leg-work that goes into finding the right candidates, the selection process, testing, pre-interviewing and screening. It is a service that saves employers many hours of their time, and of course, recruiters have a large source of suitable candidates at their fingertips and the means to reach out to them. But paying that fee in one lump sum can mean that recruiting is put on the back burner while uncertainty reigns, and then there is the question of what happens if that candidate doesn’t work out? Thousands of pounds spent and nothing to show for it.
We like to think that our closely scrutinised candidate selection process means that we always place the right candidate in the right role and with the right company that fits in with their values. It is what we excel at, and our close collaboration with our clients means we understand what they want and who they are looking for. But no one can factor in the unknown. When dealing with people, there is always room for placements to take a wrong path, and this is where we share the risk with our clients.
Our unique offering allows employers to spread the cost of their recruitment fees over 12 months. Instantly the financial stress of recruiting is relieved and can be factored into a company’s budget for the year. But what if it goes wrong and for whatever reason, the candidate leaves? The answer to that is simple – you stop paying. You pay for what you get. It’s as simple as that. Why do we offer such a scheme? That is simple too. We listened to what our clients want, and we understand the financial implications recruiting can have on business. It is easier for many businesses to spread the cost over a year rather than pay in one instalment. Secondly, the risk of failed recruitment is reduced to the point where you are only paying for what you get.
Whilst we, like most businesses, are aware of the impact our current political position is having on business, we also know that to move forward and continue to be successful, businesses need to look towards the future, and at the resources, they need to achieve this. For many, this comes back to people. The people their business needs. Don’t let failed recruitment and financial concerns be the reason you put the brakes on hiring. Speak to our team to today and find out more about our Recruit 12 payment scheme and how it can help your business move forward into 2020.