Recent figures released this month show the burgeoning job market breaking key barriers as the number of people finding employment rises at the fastest rate in four years. A report from the Recruitment & Employment Confederation (REC) and KPMG shows the number for permanent placements to be 64.6 – a rise from the previous number of 59.3 in November of last year. A figure above 50 is the indication of growth in the jobs market, while a figure below 50 indicates a contraction. Obviously, the higher the figure above 50, the greater the upturn in employment, according to the researchers. The report was constructed from a series of interviews with representatives at over 400 recruitment agencies in the UK. The figures represent the third-best set of numbers since researchers began keeping records in 1997. In addition to permanent hires, the number of temporary employment placements also hit a high – the best for 15 years.
Rise in Placements
This report adds to recent news that the economy is on an upwards trajectory in terms of job creation and fulfilment. What this means for the recruitment industry can only be positive, according to commentators. Business confidence has risen and employers have a new sense of optimism, making it a busy time for recruitment professionals. An increasing demand for temporary workers has driven up the hourly wage for temps as employers tempt staff to their doors to meet this demand. And more employers are willing to take the risk of hiring increased numbers of permanent staff. Those most in demand for permanent placements include executives, nursing and other medical staff, and workers in the IT sector.
However, it’s not all good news for the recruitment industry and employees. The report made hints that there would be problems on the horizon for the employment market with representatives at recruitment agencies reporting that the number of candidates available to fill positions also shot up – will there be enough employers in the future available to meet the demand? Also, the risk remains that employers are offering salaries to attract employees that will over-inflate the market and result in companies becoming over-stretched and facing potential financial trouble.
How You Can Manage the Uptick
It is important, when running a recruitment business, to stay within your means at the same time as pushing forward to grow the business. A difficult balance to tread, but manage it well and you’ll reap the benefits in terms of solid and steady growth. During a positive period of increased placements it can be difficult to maintain cash flow. To avoid potential recruitment finance issues it can be helpful to put in place systems that help streamline the cash flow and payroll processes, such as the service offered by http://www.cashsimply.co.uk/improved-cash-flow/. If you are in a position to capitalise on improvements in the UK economy then drive the momentum forward with clever financing solutions.
Image attributed to FreeDigitalPhotos.net Stuart Miles