It’s hard to believe it’s almost the end of 2012, which has been a good year for the recruiting profession. Now is the time to anticipate trends going into 2013.
The current realities
- Over 70% of staffing and recruiting firms have added staff;
- Over 40% have added a new niche or area of specialization;
- Many companies are hiring to spend their hiring budgets before year-end;
- Corporate profits have increased;
- Top talent in high demand – very hard to find;
- Retention of talent is challenging;
- Most employee referral programs are not implemented or effective;
- Many companies have not spent their hiring budgets to date, and will hire through the end of this quarter, so hiring budgets have increased not decreased for 2013.
Challenges faced in 2012
- Sourcing highly qualified passive candidates;
- Unrealistic client expectations:
- Paying 2009 Wages – losing top candidates;
- Hiring processes too long, candidates accepting other offers;
- Pressure to lower fees, when fees and margins are increasing;
- Wanting to interview multiple candidates for needle in a haystack searches;
- Only wanting to hire unicorns (perfect candidates which don’t exist).
- Economic uncertainty;
- Fear of the impending costs of Obamacare;
- Political uncertainty;
- Many corporations are hiring third party recruiters who have provided them with talent in the past;
- Increased benefits costs have resulted in offers being turned down;
- Counteroffers accepted have dramatically increased;
- Many clients are lost due to the implementation of a VMS.
There have been many opportunities in 2012 that will continue into 2013, including:
- Social media sites like LinkedIn provide access to passive candidates;
- The economy is improving;
- Technology continues to improve and enhance recruiting efforts;
- Boutique firms are positioned to grow;
- Job satisfaction is at historic lows, easier to attract top talent;
- Corporations have cut back internal recruiting teams and are more willing to outsource recruiting to third party recruiters;
- Companies are realizing they are overstaffed if they are not utilizing temp or contract workers, therefore increasing the number of flexible staffing opportunities;
- The need for top talent continues to increase;
- Baby Boomers continue to retire and may consider temp or contract work.
As I travel and speak at recruiting and corporate events, the economists speaking at these events are agreeing on future trends. This is a first, and as a result I feel compelled to share what these economists are predicting.
There is a concern that in the last quarter of 2013 and first quarter of 2014, there could be a reduction in hiring if countries begin to default on their loans. This will obviously impact the global economy which will impact hiring. It is predicted that this downturn will not be long, but it will impact hiring.
Overall, 2012 has been a strong year for staffing and recruiting. As talent continues to be more difficult to attract, 2013 looks even stronger. I do predict that in the not too distant future corporations will create a new position within the HR Department. This position will be CRO (Chief Retention Officer) as the retention of key employees will continue to be one of the greatest challenges faced. It is a great time in history to be in the recruiting profession as we continue to change lives for the better on a daily basis.