After a year of record growth in 2018, the UK recruitment industry looks set to continue in the same vein this year. But what is driving it and how can recruitment business leaders capitalise on the rising demand for their services? A shortage of suitably qualified candidates across many sectors is causing employers to increasingly look for support from recruiters to help them overcome these challenges.
Research published in February by the REC, shows that the number of people employed by the recruitment sector has increased 15 per cent to 115,000 since 2016/17. Meanwhile, total placements made by recruiters rose by 14% over the same period. Not surprisingly, eight out of 10 recruiters expect revenues to keep rising over the next 12 months.
The key to successful growth is preparation
Richard Branson famously said: “If someone offers you an opportunity, but you are not sure if you can do it, say yes then learn to do it later”. Easier said than done if you’re a recruiter. Suppose you’ve worked with the same client for a couple of years placing a dozen or so contractors each time. What if that client wins a major project requiring them to scale up quickly due to a big order. You may be able to find those workers, but the question is whether or not you have the funds in place to pay them each week.
If you don’t, you will need to consider what this means for your business. Will you be able to hold on to your client? Or is there a chance of them partnering with a competitor who has the means to support them? It all comes down to preparing your finances before you take those first steps to growing your agency.
Keeping the cash till ringing
Chances are that in January you mapped out your growth plans for the next 12 months. But like all business owners, you know that the objectives you have set can only come to fruition if each of your clients pay on time, every time.
Yet this rarely, if ever happens. It can take between 60-80 days on average before payment is made. You will find yourself constantly pushing back targets set for the business.
Cash flow is the lifeblood of every business. Ensuring you have the right recruitment finance in place is critical in providing you with the peace of mind that your workers are paid on time every week.
An example of this is Simplicity’s 100% finance solution that is available for both Start-Up and established agencies. This option releases your margin and pays your workers the same week. That means you can take on that big contract. You’ve also got room for growth at a pace that suits you. Oh and did you know our 100% recruitment finance comes with back office, tech and debt protection? Good to know.
So, if you’re planning for growth this year contact the Simplicity team and we can show you how we’ve been helping thousands of other recruiters to achieve their ambitions.