“2016 was a good year for staffing firms. More than three-quarters of respondents surveyed at the tail end of 2016 expected to meet or exceed 2016 revenue goals. Still, more than one in five (22 percent) anticipated a revenue shortfall for 2016,” according to Bullhorn. That shortfall didn’t happen, rather more than 75 percent of staffing and recruiting firms met or exceeded their revenue goals for 2016.
The Power of Déjà Vu
The latter is in part due to exceptional growth garnered from temporary placements. Thanks to recurring clients facing talent shortages in key sectors, this business will be crucial for firms since most predict existing clients will generate more than half of their revenue in 2017. This trend could be due to clients in need of assistance when searching for viable talent.
“Nearly 80 percent of staffing and recruiting firms said more than half their revenue would come from current accounts. The majority of North American staffing firms – 57 percent of those surveyed – anticipated that revenue from new clients would account for less than a quarter of total revenues. “informs Undercover Recruiter. Of course, it’s reassuring to rely on any current client relationships as opposed to having to grind for new business amidst any fluctuations in the economy.
Uncertainty, Meet Confidence
“I’ve been in the retained executive search business for 26 years and I’ve been through a couple different cycles. The reality is that the demand for our capability has been constant for the last three or four years. I have confidence we’re going to have a very decent 2017,” boasted veteran recruiter William D. Rowe.
Bullhorn’s report reflected most of staffing and recruiting professionals feeling exceptionally confident going into 2017, despite swelling threats of global economic uncertainty and talent shortages.
“Respondents overwhelmingly said domestic issues outweighed global concerns. Overall, the lowest ranked areas of concern correlated to international affairs, including currency fluctuation, international trade, refugee displacement, and Brexit,” Chairman and CEO of Hunt Scanlon Media Scott A. Scanlon posted.
Yet this year’s recruiters, the talent they place and their clients seem to be warding off any domestic issues being alluded to.
According to LinkedIn’s Talent Blog, the majority of teams say their hiring volume will increase in 2017, 83% are prioritizing their talent as number one despite any resource deprivations and the top three industries of focus are sales, operations and engineering.
At the helm of talent recruitment, successful staffing and resistance to any pesky economic catastrophes, is technological innovation.
Beaming the Industry Up
Between the importance of capturing viable candidates via mobile apps and digital marketing, and relying on big data analytics, there’s never been a more important time to embrace constant technological advances than in 2017.
“Smarter use of talent data will expand recruiting metrics beyond the hire itself, from time-to-hire and cost-per-hire to longer-term metrics that measure tenure, performance, fit and retention. Data tools will help match a candidate to the position that best fits his or her skills and background; assess a candidate’s personality, values and interests; rank the priority of jobs for workforce planners; and arguably, root out hiring bias,” according to Society For Human Resource Management.
It’s evident that recruiters who take a data-driven and technologically savvy approach to talent acquisitions are those who secure a competitive edge, regardless of any impending employment maelstroms.
“Not only will they know for certain which sources lead to new hires, they’ll also be able to identify and surface ideal talent profiles, and automatically seek out both active and passive job seekers who fit the mold. They will have a clearer picture of the talent population that exists and will be able to focus their efforts on the candidates who are the most receptive to new opportunities,” says Jon Bischke, CEO of Entelo, a social sourcing and talent analytics software company in San Francisco.
Recruiting tides may turn (or rise, because, well…global warming), but when ahead of trends and implementing changing best practices, teams are armed and ready for any staffing judgement day.