Rich and Poor ‘opportunity divide’ still exists in the jobs market despite skills shortages
Cheryl Cole is the editor of DiversityQ
Nearly 60% of UK recruiters say there is an “opportunity divide” between the rich and poor, according to a survey of more than 2,000 global recruitment professionals by Bullhorn, the cloud computing company that helps staffing and recruiting organisations transform their businesses.
The survey also highlights how this “opportunity divide” is further impacting the lack of available talent in the job market, which will be a top hiring challenge this year.
Some of the key findings are summarised below:
- 78% of respondents claim that dealing with shallow talent pools and skills shortages.
- 60% of recruiters believe that diversity strongly correlates with productivity.
- 57% of respondents agree that skills shortages in certain UK sectors have increased over the last five years.
- Despite hiring challenges, more than a quarter of UK recruiters expect a revenue increase of 25% or more this year.
The generational divide is a significant stumbling block for recruiters: 45% said that Millennials (those between 22-37 years old) are the hardest group to reach. Comparatively, only 15% said the same of Baby Boomers (54-72 years old).
Addressing talent shortages
The survey highlighted other possible solutions for skills gaps. Seventy-seven per cent of recruiters agreed that their clients must accelerate salary increases if they are to compete for the best candidates. However, 34% also said that encouraging employers to do this will be another top challenge for this year, largely owing to uncertain economic conditions.
Reskilling the workforce – and understanding the role recruiters should play in this process – was the third most commonly cited hiring challenge for 2019. A quarter said that reskilling workers due to the changing nature of jobs will be a daunting prospect. Despite this challenge, 77% agreed that reskilling workers will be an effective way to address the problem of shallow talent pools.
The research also found that a majority (60%) of recruiters believe organisations with a strong degree of diversity are more productive.
Peter Linas, Bullhorn’s Executive Vice President of Corporate Development and International, commented: “Economic, political, and generational considerations are aggravating talent gaps, and recruiters must look beyond conventional solutions. While there is a clear ‘opportunity divide’ in the jobs market, adopting diverse hiring practices isn’t just the right thing to do: it’s good business.”
Despite hiring challenges, more than a quarter of UK recruiters expect a revenue increase of 25% or more this year, 61% expect their number of temporary placements to increase, and 58% anticipate increasing their investment in technology. When asked specifically about a firm’s primary growth strategy over the next three to five years, only 9% of respondents expected to grow via mergers and acquisitions. The majority (80%) of respondents expected to grow their businesses organically, expanding business from new and existing clients.
When asked for their three most urgent operational challenges for the year ahead, recruiters cited:
1. Digital transformation (by 80%)
2. Pricing pressure and margin compression (by 54%)
3. Cyber security and data protection compliance (by 37%)
Some 86% of recruiters agreed that staffing and recruitment firms must embrace digital transformation —defined as the integration of technology into all areas of their business for the purposes of improving operations and the way they deliver value to customers —in order to remain competitive.
“Technology will play a critical role in encouraging more diverse hiring practices,” said Linas.
“Intelligent CRM and ATS technology can help recruiters spot candidates who might not be the most obvious choices, but do in fact have the right experience and skills to succeed.”
Political and economic challenges
Bullhorn’s research found that macroeconomic and political issues are expected to apply more pressure to the industry in 2019. The three most commonly cited were:
- Uncertainty over the economy and future growth (by 58%)
- Cybersecurity and data protection regulations such as GDPR (by 32%)
- Restrictions on use of foreign labour (by 30%)
Linas, said: “The common thread for all of these challenges is the potential impact of Brexit. Uncertainty is still the name of the game, but it’s encouraging that the industry still anticipates growth, still expects to make more placements, and is proactive in adopting new technologies. The UK recruitment industry has always been robust, resilient, and ready for anything; the question now is whether it needs to prepare for a spot of bad weather or an oncoming storm.”