The general consensus is that the UK economy will grow in 2015. What isn’t widely agreed upon is the scale of this growth, although a 3% expansion is regarded as a safe bet. Given this optimism, it will therefore come as no surprise that 66% of UK businesses plan to hire new staff in 2015. What may surprise most is a closely related recruitment fact, which is that, a staggering “82% of businesses are struggling with recruitment”. This set of numbers, especially the last figure, tells the tale, I believe, of an old recruitment model struggling to come to terms with the recruitment demands of a new age.
But, just what are the dynamics of this new age?
- Speed is now everything - employers want to hire in less and less time
- delays are easily measurable in opportunities and Pounds lost
- 33% of businesses are losing employees because of the length of their hiring process
- More workers than ever before are switching jobs, which, in addition to natural churn, is increasing the need for recruitment
- Traditional methods of recruiting remain expensive, averaging £2,000 per hire
- Job applications have shot through the roof - leaving employers exposed and unable to cope with this volume of applications
The above headlines demonstrate beyond doubt the fact that the recruitment landscape has changed. It’s now all about cost per hire, time to hire and quality of hire. An interesting exercise for any business is to check how it is performing in these 3 crucial recruitment areas. It may come as yet another surprise to learn that 61% of businesses do not measure their recruitment costs.
So, how can businesses hire staff cost effectively, given the dynamics outlined above? The emergence of Do It Yourself (DIY) online recruitment is seen by a growing number of businesses as the answer to most of these challenges. Online recruitment can reduce hiring costs by as much as 90%, and shave more than 50% off recruitment time, as illustrated by these examples*:
- Reuters saved £1 million in recruitment fees
- Sainsbury’s achieved cost savings of 40%
- Federal Express reduced recruitment time by 65%
- For Sainsbury’s, at best, it took 8 days to move from application to offer
Online recruitment completely changes the recruitment paradigm by giving businesses the tools they need to recruit in a fraction of the time, and at a fraction of the cost. By cutting out the middleman (recruitment agencies) and accessing powerful recruitment suites known as Applicant Tracking Systems, businesses are able, from any desktop in the world, to perform the exact same services offered to them by recruitment agencies at inflated prices.
In 2006, 79% of businesses surveyed by the CIPD used local press advertising to advertise jobs. By 2013 this number had dropped to a meagre 29%, while in the same period, the uptake in online recruitment registered a 22% rise. In the same period, all other methods of advertising jobs (employee referral schemes, company websites, recruitment agencies and local press advertising), suffered significant reversals.
Has the age of DIY Online Recruitment arrived?