Tag Archives: procurement jobs

Recruitment Insider: Demand For Temporary Workers Fast Outstripping Supply

Demand for workers is accelerating so fast that it’s outstripping supply. How can organisations find the employees they need without racking up a whole load of extra cost?  Jon Milton explains  the elephant in the recruitment room.

A cursory look at REC jobs market figures show that turnover in the recruitment industry for 2014/2015 was £31.5bn, the highest since records began in 2001/2002.

Permanent recruitment revenues have increased by 58.4 per cent from the recessionary lows of 2010/2011. Temporary or contract revenues are up by 60.1 per cent over the same period. Unemployment is exceptionally low.

What this means is;

  • Demand for workers is accelerating
  • Organisations are turning to recruitment agencies to help them meet it
  • The pool from which to draw workers from is receding

Any situation where demand outstrips supply should result in higher costs. These costs may be reflected in margin, pay rate, expenses or even resource commitment as your organisation searches to find the right worker fit. We have, however, gotten used to paying workers at a certain level and it’s possible to secure low margins from agencies.

How do you deal with this challenge without racking up a whole load of extra cost? Not as you perhaps think – and it’s probably worth addressing that particular elephant in the room first.

The Urban Myth: Exchanging volume with a single agency supplier will solve all my problems.

There are c24000 recruitment agencies operating in the UK, employing about 102,000 recruitment consultants. It’s a massively fragmented supply market that has never responded well when customers with diverse needs have attempted to exchange volume with a single supplier.

In the managed service world, some providers have responded to the challenge of keeping margins low with brute force, transferring workers supplied by incumbent agencies to their own books at implementation, and attempting to fill every requirement that comes along. In the long term this approach inevitably drives off contract buying and significantly reduces quality. This will obviously impact organisational output and competitiveness.

Keeping rates sustainable – making it worthwhile for the agency

The rate paid to an agency is sustainable if it covers their cost of sale and generates a reasonable profit. Cost of sale is important here; agencies typically pay their temporary workers at the end of the previous week worked and get paid by the customer in arrears. As such, prompt and efficient payment is crucial; agencies only get paid once they have filled a role successfully. Providing a decent level of opportunity on a level playing field is extremely important; and they are a vital component in delivering the temporary workforce so it is important to allow them to be heard (and not just through email) and responded to.

In terms of return, it’s important to pitch rates at the right level. Instinctively you may distrust agencies if you have stung by high spot fees in the past, but there are boundaries beyond which margins simply don’t work and render the fee payable non-profitable. Clearly it’s important to push these boundaries where the market dictates, but you will need to develop a strong understanding of the market to do so.

In our own managed service model suppler relationship management is a key component of our service and one that has helped us to address these issues. If you’re considering the managed service route, do talk to your agencies and ask them to give their views on different managed service providers – it will be an interesting conversation and one that should form part of your market approach.

Keeping rates sustainable – making it worthwhile for the worker

Whilst demand for skilled workers is currently outstripping supply it’s easy to think that the amount that you pay for those workers will have to go up, but this is not necessarily the case. Whilst pay rate is of course important, a workers decision on where to work is also led by a number of other factors. The includes the work itself, length of assignment, departmental profile and culture, amenities and work-life balance.

Keeping rates sustainable – managing expectations

Over the last 24 months we have been regularly canvassing the views of our agency suppliers to understand market dynamics, and one consistent theme has been of expectations. In an uncertain economic market where there is an abundant supply of skilled workers, the chances of recruiting someone who meets all your criteria are relatively high, so conversely with the market going full circle, expecting the same now can lead to disappointment.

The best way to address this is to allow agencies to manage the expectations of your line managers for you. This will help your managers to focus on their required outcomes rather than their perception of what they need. It will enable them to benefit from the recruiters’ knowledge of the market and what skills are available.

Whether you allow a managed service provider to manage this on your behalf or not, what is of paramount importance is that these relationships are strictly governed.

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5 Things To Know When Looking for a Job Abroad

Moving and finding a job abroad is something that many people do during their lives. But what do you need to know before you start looking?

Leaving your home, friends and family behind and moving to another country, where everything that surrounds you is completely different from that to which you are used to, is not an easy task.

New countries have different people, different cultures, different food and sometimes even a different language.

However, for some people leaving their country of origin and traveling to settle down for a while on the other side of the planet represents a personal goal or even a milestone they need to achieve.

In order to get established in a new country, there are some important things you will need to take into account: finding a job, a house, a room or an apartment, learning the native language, basic cultural norms, and so much more! But let’s focus on finding a job for now.

Follow these simple recommendations and you will be well on your way to successfully finding a job abroad:

1. Do your research

Before applying for a job abroad, you need to be informed about how they manage resumes in the country you are moving to. Do you need a cover letter? Short or long resume? Do you need to attach your certificates? Or is your resume acceptable as is?

In some countries including a photo is the norm, in others it is frowned upon. In some cases, you will need to translate and notarise your degree and other certificates, so it is very important to do your research.

2. Spread the news

Once you make a decision about the place you are going to be living next, tell every single person you know. This way, you will probably meet people who went through a similar experience or that are native of the country you chose.

Your aunt will always have a friend of a friend who spent their summer in a far away and exotic country.

3. Consider all your possibilities

Before quitting your job and booking the first ticket to Timbuktu, find out if the company you are currently working for offers exchange programs, or if you have the possibility of being transferred to another branch.

Other options are searching online for a job abroad, as well as searching your alumni networks and social network connections. Volunteering is also a great way to work abroad – it’s also a very rewarding experience.

4. Be smart

Always let the employer know, in your cover letter or during the interview, that you have done your research about the different aspects of their country and that you are willing and prepared to start working. Furthermore, assure them that you are flexible enough so as to adapt to a foreign environment.

5. Don’t be scared, relax

You have done your research, and have talked to every person you know about working abroad. You have looked for jobs online, and you know everything there is to know about your target country. And you have saved enough money to survive at least two months without a job. You are officially ready.

Of course it is scary to live somewhere completely new, but it will probably be the most exciting adventure of your life. So go for it!

Vanessa Fardi is the Leader of US, Central America, and Latin America Team for Canadian startup neuvoo. Neuvoo is a job search engine that indexes jobs available online in one unique platform, without any charge for the source of the job. It was created in 2011 and is currently available in more than 60 countries.