Standing at the start of a brand new decade, what do recruitment industry leaders see? What does 2020 look like for the sector?
On one hand, there are immense opportunities of using technology to transform the way recruitment works; on the other hand, there is a lot of uncertainty resulting from the confusion around IR35 and Brexit. And there’s tremendous pressure from shrinking margins, plus it’s getting more and more difficult to find the right talent.
The new decade belongs to agencies that are able to prepare for widespread
1) IR35 reforms in the private sector
IR35 reforms in the public sector led to blanket inside IR35 decisions, made it tougher to find contractors for the positions, raised the cost of hiring contractors for the sector and eroded recruiter margins. While the IR35 reforms for the private sector were postponed in 2019, they are expected to be implemented in 2020.
Industry leaders have been vociferous in their demand to roll back the reforms, but no announcement on postponing the legislation
Another key impact of Brexit will be on the number of overseas workers from EU working in Britain. While it is not possible to truly estimate how many contractors hailing from the EU will leave the
At this stage, there is no way to predict the true impact that Brexit will have on the UK
3) Digital transformation – leveraging technology for a competitive advantage
Candidates are at the
In order to achieve this, while reducing the overall cost of operations at the same time, agencies need to successfully implement digital and automation solutions. Typically, recruitment agencies in the UK have relied on tried and tested method and tools and have not been known for embracing innovation.
In 2020 and further, agencies will need to learn how to successfully integrate innovative technologies to transform their day to day processes. Companies that are able to do this will have a greater chance success compared to players that lag behind. The biggest
There is no doubt that these factors will have a major impact on how
Apart from the above points, some of the top challenges that agencies face perennially include skills shortage, increasing cost of candidates and higher churn rates. To stay on the top of these issues, it is essential to keep the candidates engaged. A pay & bill function that runs like a well-oiled machine is one of the foundations for keeping candidates happy. Happy candidates are a must for the success and growth of any recruitment company.
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