The latest barometer conducted by Recruiter for Q3 of 2017 has been released, finding that there is a general sense of optimism in the sector, with two-thirds of recruitment firms more positive about their business' prospects than they were 12 months ago.
This optimism in the market comes from the fact that nearly two-thirds of those surveyed expect profits to be higher over the next 12 months than the previous. This is lower than the previous three surveys, however, because businesses are likely to invest and not because of a tougher business environment. This is shown by the fact that 65% of respondents said that they are expecting to invest into increasing their headcount over the next quarter.
Q3, like normal, is set to be a quarter that recruiters will struggle with as July and August are usually slower months (due to candidate & client holidays). As a result, businesses need to increase their efforts to hit their targets. The report suggests that this is expected to be the case for Logistics, Manufacturing and the Engineering sectors which are all expected to dip slightly in Q3.
Steve Eston, Associate Director of Logistics at Precision Search commented:-
"The first two months of Quarter 3 are usually slower than normal, mainly due to client and candidate holidays which can set processes back several weeks. It can be difficult to conclude processes over these two months and quite often process deadlines get extended.
Within Logistics, the shortfall is usually caught up with in September as clients return from holidays and realise that Peak (Christmas) is only around the corner so they need to get a move on!
As a result, from the last week of August onwards, it is usually a very busy time for Logistics Management Recruitment.
In addition to this, there is a sharp upturn in interim recruitment as businesses look to get cover for Peak, Black Friday, January Sales and January Returns for 2018."
However, the barometer does state that despite the slower months, the sales sector is expected to continue to increase by 6.6% in these months.
Natalie Chapman, Team Leader within the Building Products division agrees with the report findings;-
"My clients in the building products industry are very busy and commercial and residential developments are at an all time high. They have tried to structure their business by adding people into the customer service and support functions to drive a high level of customer satisfaction, this has helped them retain business. Many clients are now focusing on quarter 3 and 4 of this year adding more sales people into their business to gain more market share now they have the support function in place."
The barometer also suggests that there are serious challenges faced by recruiters too. The main challenge in the findings appears to be the increasing lack of candidates available for recruiters, with 73% of respondents citing that there is a shortage, up 15% since Q1. Whilst this is a problem for the recruitment sector, it does also create opportunities for recruiters in the market as clients will require more support than usual to find the right people for them.
Commercial Director, Ray Metcalfe commented on the report: -
"These findings are consistent with Precision People's own business running, where we have seen an increase in vacancies of 141% compared to the same time last year. This coupled with an internal headcount increase by 100% year on year. Our clients new and old are all currently experiencing skills shortages, with 65% of business expecting an increase in headcount over the next quarter, the need to attract the right skills will become increasingly difficult."
Despite this challenge, the report does have a very positive outlook for Q3 and the next year.
For more information contact Precision People on 0116 254 5411.