The recruitment sector has survived one of the toughest years on record, and with entering into a New Year there is still a level of uncertainty as to whether market conditions will improve. With uncertain market activity, there are increasing trends of the contingent workforce and in many industries they are being used in greater capacity, as the benefits become more widely recognised. With some industry observers forecasting that Australia will post steady economic growth in 2013; the market is seen as being stable and over the past two years employment rose by half a million. This forecast suggests scope for the employment market, with the generation of jobs and increased opportunities for the recruitment industry to grow.
“Every New Year brings some element of uncertainty… But let us adapt and embrace new opportunities.”
As we look over the past year there is no denying it wasn’t a stroll in the park; in fact it has been a rocky road, well this is how many new contacts within the industry described it to me. The main concerns were increased competition within the Australian market and declining margins. However, from past experience, especially when entering into the marketplace back in 2004 myself, it is imperative that companies do not try to sweep these issues under the carpet, but to stand up and embrace them. For example increased competition fosters innovation, productivity and growth and it is the main driving force behind any market. Struggles in declining margins should be an incentive to initiate change; for example whether to outsource certain business operations to reduce costs or look to improve cash flow management.
With growth expected with the contingent workforce across Australia, recruitment agencies need to prepare for this development by participating in stronger, effective and efficient contractor management. We have supported many recruitment agencies in streamlining this process and provided efficiency in business services and back office services, meaning they have more time and resources to focus on main recruiting activities.
So, as we welcome in a New Year, there is no doubt there will be levels of uncertainty for our businesses, but let it not hinder our growth; it is important to engage in change and not be show ignorance to adopting new and innovative business strategies to ensure we are not left behind the competition.
