Robust activity levels ahead in times of political uncertainty
Contrary to warnings of a sharp dip in demand, H2 2016 hiring activity remained robust across our client base, and there is a long-term air of cautious confidence within hiring communities. The recruitment market serves as a barometer for the economy and levels of demand are often an early indicator to gains or losses in economic confidence.
From a work force planning perspective, we anticipate 2017 will see robust activity levels with some significant changes coming in 2018:
- Organisations will invest more in a contingent workforce. In periods of prolonged economic uncertainty, clients often look to hire non-permanent workers as a tactical decision. It offers flexibility to downsize and upsize teams, particularly in territories with stricter laws around engaging permanent workers.
- Clients will review more flexible legal agreements, such as having a Master Service Agreement with local addendums. They can be tailored on a country-by-country basis, which is driven by the need for flexibility in workforce planning and being legally covered from a risk perspective.
- Periods of uncertainty are an opportune time for clients to outsource their recruitment functions, not only as a way of reducing cost per hire, but to remove fixed headcount costs during hiring freezes. When doing so, a key question should be to ask potential MSP/RPO providers about their own business continuity plans in terms of making sure their own businesses are flexible and scalable. This will give clients confidence that their own suppliers are able to cope with periods of unprecedented change and how these challenging periods will drive a culture of innovation.
The recruitment market serves as a barometer for the economy and levels of demand are often an early indicator to gains or losses in economic confidence.
As a recruitment outsourcing business with a large global presence, we’ll continue to help our clients with contingency planning to ensure the best outcomes. For current clients, developing existing and future talent is integral. Looking to have the right teams to tactically perform business critical functions is the top priority.
We are holding a Workforce Planning Round table in 2017 to ensure help our clients understand how to plamfor periods of political and economic uncertainty. Register your interest by emailing firstname.lastname@example.org
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