The past three years have certainly been challenging for people and businesses in the UK—an energy crisis, the cost of living crisis, and the fallout from lockdowns. When you add to the mix rising inflation, increasing interest rates, the pressure to pay back government loans, and the sustainability demand from consumers, many have had to make huge adjustments just to survive.
It’s been no different for recruiters; the old traditional recruitment models have had to be put aside as the demand for home working and hybrid environments has continued to be strong. Indeed, there has even been a bit of a stand-off between employers, who want their workers back in the office full time, and employees, who want that flexibility to be permanent. In fact, 85% of adults working from home would like a hybrid working approach in the future.
The impact of Covid
Although the recruitment market has remained buoyant, we’ve all had to take a different approach with our clients and candidates. The advancement of digitalisation has added a new dimension; more people wanting a better work-life balance and evolving expectations from both sides have meant that companies are changing their hiring processes, and recruiters are adjusting, too.
In fairness, the recruitment industry had been stuck in a bit of a rut prior to COVID, although not many will admit to that. But in 2020, little did we know it but our traditions were about to change massively—for good.
Lockdowns forced the way employees and employers worked together into a completely new realm for 90% of the nation. Home working became the ‘new norm’ and, it’s fair to say, many people rather liked it – once they’d got used to it, anyway. As businesses and their workers had to adapt to new remote technology, employers had to trust their employees, the phenomenon of flexible working had arrived with a bang.
In 2022, as the nation started to fully emerge from lockdowns, many bosses (particularly the corporates) expected normality to return and presumed every one of their employees would come flooding back to the office. It didn’t happen and no amount of threats or cajoling would entice a good number of their staff back into the office. In hindsight (which is a wonderful thing), a more tempered, gradual approach would have been more endearing, particularly as their best workers left in droves. Good news for the small and medium-sized companies, of course; they suddenly had access to the best talent in exchange for a hybrid working environment—a win-win for them. A year down the line, and most companies now, at least where they can, are offering a hybrid model—a lesson learned?
5 of the biggest challenges facing recruitment
There have been many challenges during 2023 but for us, these stand out.
1. The remote working/hybrid environment – According to StandOut CV, 16% of UK employees currently work exclusively from home and 1 in 4 work a hybrid week. Of course, there are some jobs where working from home or a hybrid model just isn’t possible. With more and more people gravitating to this new way of work, businesses and recruiters are moving towards the virtual recruitment process. Not only does this provide access to a wider and more varied talent group, it saves time for both parties and could make it easier to find the most suitable candidate.
2. Technology and digitalisation – AI – artificial intelligence – is possibly the single, most game-changing technology in recent years. Not only has it made remote and hybrid working completely feasible and workable, it has given the rapidly growing sector of recruitment software a huge boost. Platforms, like JOIN, are making it faster and more efficient to recruit new talent virtually, and the use of AI is expected to grow even further next year.
3. A shortage of jobs – Lockdowns, inflation and wage growth have had a big impact on recruitment but in many sectors, including marketing, PR and communications, the biggest challenge has been a quiet job market and a lack of new jobs. The number of vacancies is consistently falling month-on-month and is below one million for the first time in two years, leaving many candidates struggling to get roles. The main reason for the low number of jobs available is because budget constraints have forced many companies to make cuts. Rather than stop recruiting the staff they need to boost their business’s revenue, they are culling their staff to save money in the short term. At Auxato, we’ve talked to numerous people who have lost their jobs due to their employers feeling the squeeze.
4. Money no longer buys the best talent – it used to be that corporate’s could woo the best talent with money but that’s no longer the case. Today, jobseekers are more concerned with company culture, brand values, embracing diversity and inclusion, ethical priorities and sustainability. Interestingly, a recent study by City of London Economic Research found that a massive 98% of people won’t work for a company that doesn’t align with their own values.
5. Mental health and wellbeing – lockdowns drastically changed the way we work and for many, being forced to work from home, away from social interaction and a lack of physical support, seriously affected their mental health and wellbeing. Although we are well past those dark days, employers are now expected to consider the health and wellbeing of their staff. Indeed, many businesses are now partnering with organisations like Mind who offer support and useful toolkits not just for the business, but for their staff, too, at home and in the workplace.
At Auxato, a leading recruitment and executive search firm in the UK, we have worked with our clients and our candidates to help everyone adapt and adjust to these challenges. Working specifically in the marketing, communications and PR sectors, we focus on sourcing the best talent and the most suitable roles for all.
Are you looking for a new job in 2024? Check out our latest jobs page today. If you’ve got a space to fill or are creating a new role within your workplace, get in touch with us and let’s work together to find you the best talent.