It appears as if forecasts made towards the end of 2007 have been correct, the current state of the British economy has many people feeling the financial strain. 'The consequences of not managing your money properly can be devastating' according to Chris Pond of the Financial Services Authority although this is not news for most of us, what has changed is the forgiving nature of the loan companies and banks who would always lend a hand to those in this awkward position of being behind with the bills.
The combination of increased utility bills, food and fuel prices have left the average employee less disposable income than last year despite any increases in pay rates, so what is there to do? The prospect of alternative and potentially higher paid employment becomes more essential to the average employee, although the job market itself is also on the decline. The Chartered Institute of Personnel and Development had estimated the number of people to lose their jobs as 150,000. John Philpott, the chief economist, stated that 2008 would be 'easily the worst since the Labour Government came to power in 1997'.
Chelsea
This downturn in employment combining with the increased need for higher wages will be putting a strain on the recruitment market and people will need to have a modern approach to finding their perfect job or candidate. The way people seek out their prospective employees and employers has changed dramatically over the last 10 years. Internet savvy employers accustomed to using recruitment agencies and potential employees for that matter are increasingly using online recruitment sites as part of their strategy. This transition is attributed to the speed, far-reaching, and cost effective appeal of this method.
The use of an agency can be quite an expensive one, with most recruitment agencies charging up to 20% of the candidate's annual salary upon successful placing of a candidate. Again for temporary positions agencies can charge significantly more, sometimes as much as double the wage, with the temp receiving only half of what the agency does. There are positive benefits to using a recruitment agency though; the time to fill a vacant position is shorter which means there is less staff shortage and chance of customer dissatisfaction. And perhaps most notably a fee is only levied when a suitable candidate is found.
Due to rising inflation, smaller businesses will feel the pressure with the strain of ever increasing utility bills. The loss of staff can cause unrest and thus leaving the company with a process of interviews and applications, but with limited funds to either advertise positions or pay agent fees. The business can suffer.
A recommendation is to search carefully for a recruitment agency that might specialise within your businesses field of expertise. Check carefully for the fees they would be expecting for a successful placement of a candidate. Make sure your fee is protected if the candidate should change their mind, after all they might get a better offer! The same is true for the employer though, with numerous recruitment agencies available, finding one that offers the lowest rate (percentage of salary or even a fixed price) for finding your ideal candidate would be the best option.
