UK RECRUITMENT SECTOR OPTIMISTIC FOR PRE PANDEMIC RETURN

A new survey of over 100 SME recruitment agencies across the UK shows most expect to be back to pre-Covid revenue levels by the second quarter of this year as confidence slowly returns to the sector.

The survey was carried out by Firefish Software, an award-winning Glasgow-based company that supports over 500 agencies with its state-of-the-art recruitment platform.

It was completed by 121 recruitment agency owners based in the UK during December 2021. They recruit for a wide range of industries including technology, finance and engineering.

Research suggests that most agencies expect a switch in demand, from temporary to permanent vacancies. This indicates that businesses are focused on building up their permanent workforces.

The responses from agency owners also suggest good candidates will become harder to find following the “Great Resignation” when workers decided to pursue jobs that provide a better balance between personal wellbeing and career progression.

Overall there is increased optimism in the sector due to industries adapting to new ways of working, suggesting most agencies will be looking to increase their workforce this year to meet employers’ demand. None of the surveyed leaders had a pessimistic view of what’s to come in 2022, compared to 30% who were asked the same question a year ago

At a local level, agency leaders in London are the most optimistic at 90%, while agency leaders in Wales are the most cautious with 33% taking a neutral position

Firefish was recently named one of the top tech businesses in Scotland, the North of England and Ireland at a major industry event, the 2021 Northern Tech Awards Top 100.

Wendy McDougall (pictured above), Founder and CEO of Firefish Software, said: “The pandemic’s impact on the recruitment industry has been huge but agencies have shown great resilience. 

The recruitment industry is worth almost £40bn to the UK economy and agencies are always first to feel confidence in the marketplace. This survey is a great indicator of how the businesses they deal with are feeling about growth. 

She added: “The shift toward permanent recruitment aligns with the easing of restrictions. Businesses once again have the confidence to offer permanent contracts. But the challenge of finding good candidates remains. Many agencies and the businesses they work with will have to diversify their candidate attraction methods to ensure they achieve results.

I expect 2022 will see recruiters focus their efforts on nurturing and re-engaging candidates already in their database rather than relying on trying to source new ones.

 Another strategy will be driving applicants through websites and social media. Agencies understand the importance of a strong brand presence across all platforms.”