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A little while ago, we looked at how switching to temp could help futureproof your recruitment business (Want to futureproof your agency? Switch to temp), based on research that showed more employers were looking to fill temp vacancies rather than permanent roles. Since then, that trend has become even more marked – so is now the right time to venture into temporary recruitment?
Right now, temp is king. With ongoing business uncertainty through both the pandemic and the effects of Brexit, more and more employers are looking at taking on temporary staff rather than filling permanent roles. The KPMG and REC UK Report on Jobs, published in January 2021, reported an increase in overall vacancies at the beginning of December 2020; with temporary billings increasing at the quickest rate since October 2018 and only a marginal increase in demand for permanent staff. Early indications show that trend’s continuing into 2021 – which could make this the perfect time to open your temporary recruitment agency, or expand your current recruitment offering.
But why are employers turning to temp in such force? The reasons are simple.
To begin with, it’s faster and cheaper. A flexible recruitment strategy is a smart move for any business, giving them the ability to address a skills shortage without the expense of taking on permanent staff.
Temporary also gives employers ready access to highly skilled talent. By getting specialist temporary recruiters to draw up a short-list of candidates that match their brief and budget, they avoid having to start from scratch with each new role.
Specialist temporary recruitment agencies generally have focused talent networks, giving them an in-depth knowledge of current trends and which skills are most in demand – the sort of industry knowledge employers really value.
Using temporary workers is also a great way for businesses to cope with sudden spikes in demand or seasonal variances, as they’re able to hire extra staff quickly as and when they need them.
And finally, think about the cultural shift in recent times. Business is now 24/7, whether as a result of working from home, global reach, the rise in internet shopping or any number of other reasons. All of which can make traditional permanent roles and 9 to 5 hours somewhat outdated for some organisations.
What’s in it for you?
It’s all very well outlining why employers are looking more to temporary recruitment – but why you should consider it?
The biggest reason is simply to go where the money is. With such high demand for temp staff just now, it’s as good a time as any to secure your slice of the action.
As a recruiter though, there are other advantages. You can choose which area you’d prefer to specialise in, and build your industry contacts and knowledge accordingly (the focused talent networks we referred to earlier) – effectively making you a big fish in a small pool, if you choose wisely.
While permanent fees may be valuable income too, with temporary you have an ongoing revenue stream without the peaks and troughs, giving your business more predictability and fewer potential cash flow problems. In turn, that allows you to build a more profitable and sustainable business for the future.
And isn’t that what we all want?
If you’re thinking of setting up, or switching to being, a temporary recruitment agency, Back Office is here to help you avoid the pitfalls and support you with the admin side of your business – including invoice factoringand payroll. To talk to our team about what you need, just call 01260 280 290 or email us.