Looking back at major events you have personally experienced is fascinating. Were there long-term impacts, or is it back to business as usual?
The Covid years appear to have significantly changed the local recruitment industry. The merging of trends that were already underway combined with new strategies and social impacts has changed the way recruitment agencies are operating today.
For example, plenty has been written about AI and its impact on the recruitment industry. And there are continual views on flexible work, working from home, and other impacts on Monday-to-Friday office work.
I focus on the changes in business owner strategy and its impact on the structure and operation of a recruitment agency. For over a decade it has been puzzling that some recruitment industry trends from overseas, especially from the UK and US, have not taken hold here in Australia.
We have wanted offshore outsourcing to be part of the strategy conversation with recruitment agency owners as we believe decisions will be less robust without this option as part of the mix. Most improvements in a recruitment agency’s performance involve some combination of technology and people. Traditionally leaders have been bold and creative with technology investment, but less so with options around human capital.
Offshore outsourcing in the recruitment/staffing sector is an accepted part of the business structure in the US and UK but has been less prevalent here. Outsourcing of processes in the recruitment function, payroll and accounts functions, and marketing function is well-established globally.
The benefits from offshore outsourcing include cost, scalability, speed to market, process and productivity gains, and improved client and candidate service. There are risks that need to be managed, just as there are with hiring new or experienced staff into your business.
Today this is a topic of conversation that has equal place with other business improvement topics. Possibly Covid has taught all of us that some long-held beliefs were not that important, and a broader range of options can be discussed as part of the business strategy.
For owners there are longer term benefits. Building equity value is a goal for most. Creating business that has greater sustainability, flexibility, and more predictable revenue streams and margins, will improve the attractiveness to potential acquirers, as well as maximise the value potential.
Initially Published by APSCo Australia.