Future of Recruitment 2020-2030 – Your Future Starts Today

Future of Recruitment 2020-2030 – Your Future Starts Today

Over the past six to seven years I have written many blogs, many of which have proved hugely popular like Top 5 Recruitment Sectors to be in for the next 5-10 years which has had over 30,000 readers and this years Top Recruitment Sectors for Growth in 2018 .
This blog however is probably my most important as for those of you working in the Recruitment Sector either acting as agencies, internal recruiters or HR professionals the next 15-20 year promise to be the most dynamic, volatile and revolutionary in the history of our sector.

The level of change that our industry and the “world of work” will go through is to some people incomprehensible.

As business growth coaches we are challenged when supporting our clients with their three to five year growth plans in having to predict the impact of many of these changes upon their market sectors a task we have been doing now for nearly 10 years.

If you are looking to develop your career in recruitment or sell your business in three to five years, what the world will look like and how resilient your market sector will be in five to ten years is a major consideration.

This question therefore is one we consider and reflect on weekly with our clients as more information and reports are circulated.

Our blog therefore represents our snapshot in time (Spring 2018) and could be different in six months time as revelations about the Future of the World of Work unfolds.

Recruitment Industry Agency Models

To us there are essentially three agency models, which can be blended or broken down and modified to reflect certain sectors.

• Niche recruiters
• Generalist Recruiters
• Managed Services (MSP/RPO/NV/Mast Vend)

Increasingly the market is polarising around the Niche and Managed Service models with the generalists struggling to maintain margins, market differentiation and profitability.

Niche Recruiters

The Niche model, in its various guises, leverages the numerous skills-gaps that exist in the UK and Global economies and has two drivers,

• Find the rare skilled candidates and gain a degree of exclusivity
• Sell the rare skilled candidates to the highest bidder

Niche recruiters have been the success story of the past 15-20 years and are dominated by SMEs. They leverage their status as niche sector experts and master their ability to find and secure any skill in that sector. It is fair to say most of our high growth agencies are all niche agencies.

Increasingly these niches are becoming narrower and deeper. The expression “inch wide, mile deep” has been used many times to describe them.

These agencies have become very effective at maximising their fees and making healthy returns.

Managed Service Recruiters

These operate at the opposite end of the market and work on volume and at a lower transaction price. They industrialise process and are constantly seeking productivity gains to driver down delivery costs, as well as increase their quality service thus generating extra profit.

The cost of acquisition of staff for their clients is constantly failing as they invest greater and greater sums in automation. AI and chat-bots greatly excite this sector as it gives them even further opportunities to increase productivity gains. It also raises the bar for the smaller operators as entry to this market becomes more complex and costly. That said this too might shift with automation. We will have to see.

These suppliers have become very effective at exploiting their clients employer brands as they become very effective “one-stop-shops”.

At the same time the agencies in this sector are seeing their market under attack from Clients In-sourcing strategies where In-House Teams take these contracts back inside and TUPE over the operational staff that are delivering these solutions.

Generalist Recruiters

Increasingly the directors of these businesses are moving their companies more towards operating as a collection of niche businesses under one-roof as they see their margins squeezed by the ever-aggressive Managed Services Businesses and as they struggle to provide expertise that the niche agency suppliers bring to bear.

In certain localities across the UK we see a future for these generalists if they focus on getting close to the SME business sector in their locality but in most locations I think they will struggle unless they specialise and move towards the niche model.

Key Reports

This is a dynamic landscape with new reports out each week but the key reports we focused in this blog are:

PWC – UK Economic Outlook 2017 -Workforce of the future
Forrester – The Top Emerging Technologies To Watch: 2017 To 2021, various
World Economic Forum – Future of Jobs
Frey & Osborne – Future of Employment & US & UK Labour Stats
Nesta/Pearson – The Future of Skills: Trends impacting on UK employment in 2030
Deloitte – (2016) Automation transforming UK industries
REC – The future of jobs Report
• Elon Musk – Various Interviews

Key Headlines

The world of work and the future of recruitment is going to be a highly dynamic market and there is no overwhelming consensus on the cumulative effects of change as to what the future will look like.

There is general agreement however on some elements like what are the major technological dynamics that will affect the market:

• Automation
• Augmentation
• Artificial Intelligence
• Autonomous Vehicles
• 3D Printing

It should also be noted that there are other effects, which also feed into this market dynamic and these are:

• Longevity and ageing societies
• Changing Nature of Work, flexible working, remote working
• Climate change and natural resources
• Geopolitical volatility
• Consumer ethics and privacy issues

Automation

Automation affects employment in 2 ways:

Displacement Effect

• Negatively – by directly displacing workers from tasks they were previously performing.
• Tend to be low skilled roles

Productivity Effect

• Positively – by increasing the demand for labour in other industries or jobs that arise due to automation
• Tend to be high skilled roles

An analysis by Deloitte of ONS data suggests that the impact of automation is already being felt in sectors where a high proportion of jobs have a high chance of being automated. (Taken from REC – Future of Jobs).

In the UK most of the major jobs losses between 2001-15 have been in Manufacturing 720,000 with the largest number being created in Health and Social Care 1.1m.

Interestingly Professional, Scientific and Technical appeared in the top three for both jobs lost and created. Deloitte’s analysis concluded that all of those lost had a high chance of automation whilst of those created 88% had a low chance of automation.

Augmentation

This is where technology is not replacing workers but supporting or augmenting their skills and performance to improve their effectiveness and efficiency.

A good example of how automation is augmenting healthcare jobs can be seen from the work of Prof. Paul Leeson of Oxford John Radcliffe Hospital and his colleagues who have developed a system that they claim could save £1.1 billions of pounds by enabling the heart diseases to be picked up much earlier.

The technology will start to be available to NHS hospitals for free this summer and Prof Paul Leeson –”Data indicates that the system had greatly outperformed his fellow heart specialists.” Of 60,000 heart scans carried out each year, 12,000 are reportedly misdiagnosed at an estimated cost of £600million.

This story appeared in a Daily Telegraph article in 3rd Jan 2018.

Artificial Intelligence

According to the Encyclopaedia Britannica :

Artificial intelligence (AI), the ability of a digital computer or computer-controlled robot to perform tasks commonly associated with intelligent beings. The term is frequently applied to the project of developing systems endowed with the intellectual processes characteristic of humans, such as the ability to reason, discover meaning, generalise, or learn from past experience. 

This will remove a whole host of repetitive jobs across business and industry as can be seen later with the role of accountants and book keepers.

The World Economic Forum – Future of Jobs report, which looks at the 2015-2020 period and predicts which sectors are likely to see the most jobs losses.

Again this report like the Deloitte report lists Manufacturing and Production jobs high up behind Office and Administrative jobs. This time it lists Education and Training and Sales Related jobs as being the least in danger of automation. Once again Professional Business and Financial Operations jobs along with Management roles featured amongst the lowest at risk of automation.

Finally the work of Frey & Osborne from Oxford Martin University has been heavily quoted by many commentators and an interactive graphic produced by Bloomberg enables readers and recruiters to enter a job type and see the likely risk of automation to the role. We’d encourage you to review key jobs that you recruit for to see their likely risk of automation over the next few years.

The link is www.bloomberg.com/graphics/2017-job-risk/

Bloomberg quote Frey & Osborne:

Researchers at the University of Oxford, for example, estimate ” that nearly half of all U.S. jobs may be at risk in the coming decades, with lower-paid occupations among the most vulnerable.”

Their graphic for example shows that Accountants and Auditor though well educated and well paid were at a 94% risk of their jobs being automated.

Whilst this has been questioned by many you only have to look at the accounting tools now available from Xero or Sage to understand how through AI and machine learning this can easily happen.

As one of Sage’s Top 100 Global Business Influencers I contacted their product development people to see if they had any thing they could offer me to help explain this and I am delighted to say they shared with us details on their chatbot Pegg.

Pegg:

“..is your smart, admin assistant that lives in your mobile, so you can record your expenses anywhere, anytime, without hassle or entering paper receipts.”

“Because of clever integration, simply message Pegg with your expenses and it automatically accounts for it in Sage One.”

With bank feeds now entering all your credit card and bank account transactions directly into Sage One and with rules on how expenses from specific suppliers are handled, the whole process of book-keeping and receipting your transactions can be simplified and semi-automated. It becomes very easy to see how with further AI this whole accounting process could be fully automated in the next 5-10 years.

In the UK Carl Frey, co-director of the Oxford Martin programme on technology and employment at Oxford University, estimates that as many as 35 per cent of jobs in the UK are at risk of loss.

The message is similar.

The top ten of jobs most at risk of computerisation feature

With the top ten jobs at least risk from computerisation being

Source – Taken from REC – Future of Jobs

Again health and social care as well as sales professionals feature very strongly.

Autonomous Vehicles

Much has been said and written about this subject in recent months.

Elon Musk the CEO of Tesla Inc.claims totally autonomous vehicles will be on the roads in 2019 and they will be 10x safer than human drivers.

In November 2017 the UK Government announced Driverless cars will be on Britain’s roads by 2021 as a result of sweeping regulatory reforms that will put the UK in the forefront of a post-Brexit technological revolution as reported by the Guardian

And in the same months Volvo signed an agreement with Uber to supply them with tens of thousands of autonomous driving compatible base vehicles between 2019 and 2021..

Then in December 2017 Tesla launched their new “Semi-Truck” whose power and torque are vastly superior to all diesel engined vehicles.

What this means for employment in the transportation industry who knows as many working in the sector refuse to see any significant changes in the next 10 years. This nevertheless offers a huge opportunity for a disruptive business model so lets wait and see.

However the PWC UK Economic Outlook also estimate that transportation and storage (56%), manufacturing (46%) and wholesale and retail (44%) have the highest risk of automation the overall UK economy has a 30% risk of jobs being automated.

This compares very favourably with Germany 35% and the US 38%.

Human Qualities

Some of this discrepancy between the various reports can be explained by the unique qualities that we as humans have.

The reports are generally in agreement that the following are the human qualities that are the areas that machines will have difficulty automating:

• Emotional Intelligence
• Critical thinking
• Collaboration
• Emotional Support
• Original thought
• Abstract concepts
• Conflicting concepts
• Persuasion

The future is also not all bleak as clearly there are many new jobs being created. The IDC sees 2.1m jobs being created in the US by technology augmenting workers in the world of CRM over the five years to 2021.

AI has the potential to make many jobs more productive and remove a lot of the mundane and boring elements of jobs.

A key conclusion worth noting is how to protect yourself from unemployment which is listed as education.

The World Economic Forum estimates that those with GCSE2 have a 46% risk of losing their jobs whilst those with degrees are only at a 12% risk.

What we are going to see are jobs being defragmented and the tasks that can be automated being undertaken by machines and tasks that requiring humans being consolidated into new roles.

In fact the World Economic Forum’s Future of Jobs 2016 estimates that 65% of primary school children will end up working in jobs that don’t exist yet.

Future Scenarios

Part of the reason for the variation in predictions comes form the fact that there are a number of scenarios being considered.

There is a great Infographic from Salesforce, which illustrates this:

In the first scenario they call “False Alarm” new jobs emerge slows and current jobs are displaced slowly so nothing changes much. Personally I see this as the least likely of the four options.

The second scenario called “Jobs Crisis” has current jobs being displaced quickly creating unemployment and due to inertia, public sector intervention, private automation tax and heavy resistance to new technology new jobs are created slowly.

In the scenario called “New Economy” current jobs are displaced quickly and new jobs are created quickly. We would need to invest in training and retraining. For some this is exciting and dynamic but for many this would be too chaotic and could be very difficult for large parts of our society to cope with emotionally. This scenario if too rapid could see violent responses from some sections as well as huge increase in mental health issues for society.

The final scenarios “Labour Shortage” characterised by investment in training would see new roles created fast but traditional jobs displaced slowly. This would impact UK economic growth and could be catastrophic in the long run on our global competitiveness.

Personally I believe “Labour Shortage” and “New Economy” are the most likely scenarios and believe we will spend time potentially in both of these over the next 10-15 years.

Impact on Recruitment Process

As well as the sectors in which we supply and operate all this new technology will also impact the process of recruitment itself.

Source – Taken from REC – Future of Jobs

• AI – Will Increasingly be used to identify and sift candidates, for screening, compliance and skill verification
• Video Interviewing – Will become common as it removes geographic boundaries and speeds up the process
• Collaborative hiring – Tools to enable individuals to collaborate objectively in the process whilst operating in different geographic locations and time zones will become common, particularly amongst multi-nationals.
• Gamification – Technology to enable candidate testing during process
• New Resourcing Platforms – New ways of working to deliver efficiencies

All of these process changes and more will increasingly be used in the next 10-15 years. In many cases they will require high levels of capital investment taking them out of range of the SME Niche and Generalist Recruiters further adding ammunition to the armoury of the large MSP/RPO Recruiters enabling them to further penetrate the large corporate markets and drive down costs and increase profits.

In addition large corporates may choose to use these tools to insource these large contracts and deliver the efficiencies back into their own businesses.

The Consequences for future of recruitment

Threats to the future of your Recruitment Agency

If we reflect on the evidence that has been presented so far what we can conclude is that as well as destroying traditional job roles and job families the new technology will create new job roles and new job families of jobs.

As we have seen large numbers of roles are likely to disappear in transportation, manufacturing and wholesale/retail sectors. In addition some of the professional sectors will see many menial and semi-skilled roles automated. A lot of these roles will be the creation and preparation of data.

At the same time jobs will be created in health and social care sectors, education as well as highly skilled roles in the high tech, scientific, technical and professional sectors. Many of the professional, technical and scientific roles will be in the interpretation of data where there is often no clear right or wrong answer and it requires a careful balance.

The “Job-Crisis Scenario” discussed above presents a huge threat to recruitment agency businesses large or small with traditional jobs displaced quickly and new jobs created slowly. In this case we would see large-scale unemployment, which would be good for no one or any economy.

Another threat for many agencies would be huge market disruption that prevented consultants tracking where the skills-gaps were or being able to service them. It would also prevent employers businesses being able to plan and predict their future and would make recruitment highly volatile and uncertain which in turn would disrupt growth and economic expansion.

A highly dynamic situation where skills-gaps were created and disappeared too quickly would make the conditions almost impossible for niche consultants to develop their skills and deliver a high quality and reliable service to employers.

Finally another threat to all recruitment agencies would be if the dynamic changes disrupted long-standing customer relationships removing continuity and allowing their competitors to move in.

Opportunities in the future for your Recruitment Agency

In the opposite scenario “Labour Shortage”, where new jobs emerge quickly and current jobs are displaced slowly the opportunities for niche agencies to benefit will be huge. Significant opportunities would also exist for generalist or Managed Service Recruiters as well.

Also The “New Economy” scenarios would also create sizeable opportunities for recruitment agencies to thrive through servicing their clients needs by continuing to leverage their skills and expertise either as a niche recruiter, generalist or Managed Service Recruiter.

In-house recruiters in both scenarios would have a key role to play/

In situations where these skills gaps are created rapidly then highly skilled expert recruiters who know their niches well or have strategies to recruit at volume should prosper.

Such a dynamic market is likely to create situations where agencies with less agility or expertise could see their customer relationships disrupted or lost to agencies that are better able to respond to the rapidly changing market conditions.

It proffers the opportunities for some agencies, (niche, generalist or MSP/RPO) to strike up Strategic Partnerships with some employers who seek continuity of service and supply.

Finally it also creates a huge opportunity for all agencies to offer consultancy to employers on how to create new roles that can easily be resourced and build resilient resourcing strategies that help businesses deliver ambitious growth plans.

It does call for a different type of selling however. Agencies will need to learn “consultancy sales” skills as well as strategic relationship sales skills.

It may require different sales professionals to the ones currently employed by some agencies which some might find extremely challenging.

Conclusion

No one knows what will actually happen and to a degree there is still time for us to avoid many of these pitfalls and maximise the opportunities that this new industrial revolution will create for us as the recruitment community as well as society as a whole.

One thing however is certain and in the words of Bob Dylan,

The times they are a changing.

As recruitment agency owners, directors and talent leaders one thing you would be wise to do is not ignore what is happening and wait for the future to become clearer before acting.

The reason….because it may never be clear.

We are moving into a world of constant and dynamic change.

My advice to all our clients is monitor, observe and where you feel there is a clear shift respond to opportunities or mitigate any risks to your business.

This may mean:

• Diversify your niche sectors.
• Move form being a local generalist to being more niche focused.
• Recruit consultants who are more responsive to their clients and the market.
• Seek out employees that are more flexible and innovative.
• Build resilient client relationships.
• Review your business operating model.
• Reduce your office network.
• Change your CRM/Mid-office technology platform.
• Review your consultant recruitment and training strategy.

It may also mean in the medium term moving away form sectors such as:

• Logistics
• Warehousing
• Manufacturing
• Low/semi skilled temps

It could mean exploring sectors such as:

• Hi-Tech
• Health and Social Care
• Education
• Technical/Professional

The recruitment agencies that thrive and prosper in the next 15-20 years and therefore the entrepreneurs who go on to succeed will be the “fittest”.

To paraphrase Charles Darwin –

Those entrepreneurs whose businesses that “have the closest” market “fit, are therefore the ones that will leave the most copies of themselves in successive generations” and are the ones that will survive.

Recruitment Agency MDs – Will you Adapt or Fail?

 

 

 

Was anyone apart from the board of directors of HMV or Blockbuster surprised when their businesses went into liquidation? I know I wasn’t and most people I have spoken too weren’t either.

After all technology changed the way their customers could purchase their products and both HMV and Blockbuster were slow to adapt their business models. When you can buy your music and video choices on-line why would we go to a shop unless they added value.

The same is true in the World of Recruitment. With technology increasingly making the sourcing of mainstream talent and resource easier, employers will not use agencies in the future unless they can supply their ‘product’ with an added value. Only where acute skill-shortages exists may agencies still have a role but only if they can source the best talent.

 

The burning question is with their existing business models will they be able to?

 

7788113_sIn my recent blog Third World War begins now I discussed how the scale of the ‘War on Talent’ is about to accelerate dramatically. I questioned whether recruitment agencies would be allies of corporate businesses or mercenaries but the choice agencies face is far starker than that.

 

What is at stake is their very survival.

 

The traditional recruitment agency’s business model has been set up around attracting candidates; contractors and temporary workers who predominantly come from the ‘baby-boomer’ (born pre 1964) and ‘generation-X’ (b1965-1981) age groups. Only now are they starting to engage the ‘Millennial Generation’ (also known as Gen-Y born after 1982 and started work since the millennium).

 

A lot has been written about this generation and if you have not read it you need to quick.

 

Millennials have very different expectations and attitudes to work and so they will increasingly make different demands in the way they engage with agencies and employers. In a future world with acute skill shortages, highly educated young talent will progressively become harder to find.  Sourcing these millennial candidates is therefore a must if any recruitment agency is to thrive.

 

In my Third World War Begins now blog many of you will remember that in the next two years ‘Millennials’ are set to become the dominant generation in the work place. This is going to come as a shock for many ‘Baby-boomers’ who as a generation, have dominated the workplace for over thirty years.

 

It’s a timely reminder in the week that she passed away that Margaret Thatcher’s reign _66808649_66808648coincided with the ‘baby-boomers arrival as the dominant generation in the UK workplace. It was a period of huge change in the UK and US both within work and society.

 

New management practices came in and the old large monolithic business hierarchy’s dismantled. The Baby-boomers readily embraced IT into mainstream corporate life which saw swathes of administrative and clerical functions computerised and abolished. They embraced the free market economy and entrepreneurial spirit, which the US & UK governments were so keen to unleash at that time.  Whether one was a product of the other is debateable but the ‘Young and upwardly mobile’ Yuppies certainly exploited the opportunity that in the UK, the Thatcher government created.

 

Similarly todays ‘Millennials’ are poised to have a major impact on the post 2015 world.

 

So what are the key areas that make ‘Millennials’ different?

 

Meaningful Engagement – Most research indicates that the millennial generation are unwilling to perform dry boring work. Kevin Sheridan, the Senior VP of Avatar HR Solutions (an organization that specializes in employee engagement and talent management.) recently told SHRM On-line.

 

“In a gargantuan difference between Baby Boomers and Gen Y, the latter set their career as one element within their life, not the single element that makes their life. Gen Y wants their job to provide personal fulfillment and support a positive work/life balance.”

 

Clearly the work they do has to have a value and meaning. As recruiters we will find it increasingly difficult to find young people to undertake boring, repetitive and tedious roles and certainly not doing over 45 hour shifts. Recruiters might need to think differently how they sell the jobs they are seeking to fill. Millennials will increasingly demand more job information before attending interviews.

 

Fearless and Intolerant – One of the main qualities that sets Millennials out from the rest of us is their fearlessness and intolerance.  If there is something they don’t like they will not suffer in silence. They will not bite the bullet, or get their head down and get on with it.

 

No, they will challenge it and if  unsuccessful they will simply walk.

 

Increasingly the skilled and educated ones will know that they can get another a job. As greater numbers of this generation have travelled the world they already know first-hand that there are many countries where they can get work, Australia, China, Brazil, Russia the Middle East to name just a few.  Employers and agencies seeking to control Millennials with the fear of unemployment will simply find it ineffective.

 

calijody-interior

Flexibility – Millennials demand working environments, which are flexible. They will not work rigid 9-5 days. They will demand the flexibility to complete their tasks when and where it suits them. Employer’s business models will therefore need to reflect this desire including recruitment agencies own models.

 

Already a great many global companies who are aware of this are migrating to operating models where employees are evaluated on performance rather than presence. The ROWE (Results only Work Environments) is one of these such environments. Cali Ressler and Jody Thompson are the Founders of CultureRx and creators of the Results-Only Work Environment (ROWE) and their site is worth a read. This model will not work for every industry and there will be a need for some people to work core hours but entire workforces working rigidly will be a thing of the past.

 

Dynamic Environments – Stayed and monotone working environments will not appeal to Millennials they demand change. They also have low attention spans and will rapidly move on if the work isn’t stimulating and challenging. They are not afraid of tough challenges and will strive for ambitious goals. So recruiters when taking briefs you need to check how stimulating the work is otherwise your refund clauses could be used a lot more frequently that you might like. Money is not their primary motivator in making career choices.

 

Recognition and Management – Millennials crave feedback, instant reaction and gratification. They will not wait for annual appraisals they have been brought up on social technology and are accustomed to getting frequent responses. They will not suffer pretentious and insincere fools as managers. ‘Authentic and honest’ superiors whose knowledge they can respect is what they seek. 1970s and 80s autocratic leadership founded on hierarchy and status will not work. If your clients operate this way prepare to find them very difficult to recruit for.

 

Diverse, Fun loving Team Players – Millennials like most of us are fun loving at heart and for them work is not supposed to be an austere place. They will expect to work in multi-cultural and multi-disciplined teams with other workers who have knowledge they can respect and learn from. When attracting candidates your techniques and approaches need to reflect this.

BYOD

Technology Sensitive – If your clients are luddites and do not embrace new technology then Millennials will shun them. Filling jobs where employers shy away from investing in the latest and most efficient technology will see the Millennials leave. BYOD ‘Bring your own Device’ employers are expected to become the norm. Agencies that employ old methods of applicant attraction, which do not embrace the latest technology, will also see themselves lose out too.

 

To this end Social Media is therefore the most effective way to engage them.

 

This is the battleground recruitment agencies are already losing. The Millennials, who seeking ‘meaningful engagement’ are connecting with employers who are already ahead of the curve. Astute and forward thinking corporate HR departments are aware of these demographic and social changes and are reshaping their businesses to accommodate them. They are also learning to leverage their corporate brands to recruit and attract the best talent using In-house/Direct Sourcing team.

 

Like Network Rail, who at the CIPD conference in Manchester this year, outlined how they had used Facebook very successfully to hire virtually their entire 2013 apprentices, businesses are creating and cultivating their own talent pools not by tweeting incessantly that they have vacancies but by placing meaningful and highly relevant and interesting Unknowncontent into a Facebook Group.

 

A move to in-house recruitment at Network Rail has saved the company 85 per cent in hiring expenditure, the CIPD’s annual conference in Manchester has heard.


The reduction in recruitment agency fees has seen costs per hire drop from an average of £3,500 to £500 in five years, said Adrian Thomas, head of resourcing at the rail maintenance firm. The company – which employs 35,000 people – externally hires or internally promotes around 10,000 people a year.


Now, 73 per cent of external recruitment is done through direct resourcing, with only 7 per cent fielded out to agencies, delegates were told.


The majority of candidates were now generated through a revamped careers website, explained Thomas. Other initiatives included a specially designed Facebook forum for the Network Rail apprenticeships scheme, which generated 6,000 applications for the 200 places on offer, he added.


 

Other companies are similarly using YouTube, Twitter and LinkedIn to post relevant and domain specific videos, articles, case studies and industry news for their target audiences to feast on. Only once their core following is established do they start to post jobs news into it. Like good farmers they spend hours preparing the soil before planting the seeds.

 

This is nothing that niche agencies in IT, Oil and Gas, Engineering, Biotech or Nursing couldn’t do but they choose not to. It requires patience and investment without immediate returns. Sadly for the agencies however by the time the industry accept the returns are there it may be too late. Agencies will have lost the high ground and the commercial advantages that go with it.

So MD’s will your businesses also go the way of HMV and Blockbuster or do you have the courage to start to change now. As Network Rail demonstrates there are models out there that work.

Globally the number of people under the age of 30 now exceeds 50% of the world’s population.  Somewhere between 2014 and 2015 the Millennials will become the dominant generation in the workplace. The time to change is upon you.

The War for Millennial Talent has begun. The only question is do you have the courage and wisdom to triumph?

 

 

 

 

 

Top 5 Recruitment Sectors to be in for next 5-10 years

Top 5 Recruitment Sectors to be in for next 5-10 years

With unemployment typically running at 8-11% across the developed economies of the world it seems bizarre to be talking about skills shortages but that is the reality of the world today.

In last weeks blog ‘Can we win the Global Talent War’ I mentioned the five:

  • Information Technology
  • Engineering
  • Energy, Oil and Gas
  • Healthcare
  • Emerging Technology application

This week I go into detail about why these sectors are the ones to be in.

Information Technology

At CeBIT in Hannover Germany last week, Neelie Kroes told delegate’s that the EUs competitiveness is under threat unless we can fill the gap in the regions IT Skills Shortages. The EU have launched a ‘grand coalition’ to address the regions issues.cebit

 

In addition in last weeks article on the CeBIT event the BBC reported:

The (EU) commission’s own figures suggested that there will be 900,000 vacancies for IT-related roles by 2015. There are currently about 26 million people unemployed across Europe. The number of “digital jobs” – jobs based around IT – is growing by about 100,000 every year, yet the number of skilled IT graduates is failing to keep pace.

IT is the fashion industry of business. Whilst financial practices change slowly and evolve at a gentle pace rather than being abolished, IT in business is obsolete inside five years and the people who design, build and maintain our complex IT architecture find their skills similarly redundant too.

In my 24 years in IT recruitment I was asked many times ‘how should I guarantee my employment? For many years I have responded in the same way, as there is no company that can guarantee continuous employment for all its employees forever.

‘If you wish to remain in employment you must take ownership of your own career and ensure you remain current with all the latest technologies in your core sector.’

IT is constantly changing and consequently it renews itself every 5-10 years.

Likewise so do its workers if they wish to remain employed.

As a result of these shortages many of my agency clients, despite the recession, see an increasing need for their services and all have growing sales lines. I see no end to this for the foreseeable future unless the need by business to adopt the latest technology diminishes radically.

Engineering

Last year a study Jobs and growth: the importance of engineering skills to the economy by the Royal Academy of Engineering found that British industry needs 100,000 new graduates in Science, technology, engineering and mathematics until 2020. In total that’s 830,000 professionals and 450,000 technicians.

They found nuclear new build and automotive manufacture as key areas and are predicting a 15% premium compared to UK averages salaries. Those that follow my ‘Greenshoots’ Newsfeeds and tweets will know that automotive has been a key growth area with Nissan, Land Rover Jaguar, BMW and many others all announcing a growth in jobs. With the HS2 Project due to kick off too, this will create further growth in this sector.

In January Sir James Dyson, the inventor, warned of a deficit of 60,000 engineering graduates this year and argued: “The government must do more to attract the brightest and best into engineering and science so that we can compete internationally. “Twenty-six per cent of engineering graduates do not go into engineering or technical professions,” he told the Radio Times. “More worrying is that 85 per cent of all engineering and science postgraduates in our universities come from outside the UK. Yet nine in 10 leave the UK after they finish their studies.”

Clearly all these reports on the engineering sector are collectively projecting skills gaps well into the 2020’s. This too is a key area to grow in.

Energy, Oil & Gas

In a way Energy, Oil & Gas are a subset of Engineering but need to be considered a sector in their own right. The global economy is demanding increased energy production and this drive is forcing greater and greater demand for the engineers to source, design and build the oil, gas and energy extraction and generating complexes. Besides traditional sectors of oil and gas exploration and production, the quest for renewables seems to be gathering a pace here in the UK.

To put the scale of this into context the Lloyds Banking group recently found that oil and gas firms could create up to 34,000 jobs over the next two years. Stuart

While, area director of Lloyds Bank Commercial Banking north of Scotland, said “The 100 companies we surveyed have committed to creating 5,000 jobs, which, if replicated across the industry, would see tens of thousands of jobs created over the next two years.”

Again if you track my ‘Greenshoots – 1000 new jobs created in North Sea’ news feeds in recent weeks you will see them all littered with Oil, Gas and renewable energy projects that have been announced. Only last week Aker Solutions announced a new contract from BP which will see 500 additional jobs on top of the company’s 1,500 already announced here in the UK.

Healthcare

NHS NursesThe drivers behind the demand for healthcare professionals is our globally aging population which poses considerable threat to the world economy over the next 20 to 50 years.

 

As we reported in this weeks March Greenshoots the Nottingham office of Home Instead Senior Care found this week care is not an attractive profession for many and they have been struggling to recruit 40 care workers company. Nevertheless the demand for skills in this sector is set to boom and there appears no end in sight.

The only issue is can we attract the people to work in this highly demanding sector.

 

Emerging Technology Applications

 

As technology advances the application of this to every business is going to create and generate new jobs and skills for which there is a very small supply base.

It is debateable whether these will be IT or engineering jobs. Certainly there will be many in these sectors but technology and mobile technology particularly is starting to pervade the whole of our lives from in-car systems, to domestic climate control systems to intelligent hi-fi to the whole tablet, smartphone industry, which now enables retailers, suppliers and businesses generally to create totally new ways of delivering services to us.

telehealth-remote-kit-btFrom Tele-health that enables patients to be treated for many illnesses at home to iPhone apps that enable us to purchase things on the move, business is changing and the skills and people required to keep businesses ahead of their competitors are going to be highly sort after.

 

Only recently a Computerworld survey indicated that 60% of IT executives plan to hire app developers in 2013.

I’m sure other vibrant sectors will materialise as we emerge out of our worldwide recession and the skills shortages discussed in my blog Third World War begins Now – Recruitment Agencies Mercenaries or Allies? start to bite.

It defies logic that with Europe facing a skill shortage of 23 million by 2020 and China and incredible 140m by 2030, recruitment agencies will not have a key role to play.

Graduates

If you have children considering university then clearly these are the sectors to go for but Graduates in Cap and Gownwith the average student debt tipped to reach £50,000 by 2015 when the new student fees hit, you can understand why fresh graduates will look globally rather than in the UK when seeking careers.

Personally I remain convinced that UK Plc. does not have this policy right so watch this space.

 

 

 

 

Four Steps to turn an Ad-hoc client into a Corporate Cash-cow

 

 

It is every recruitment consultants dream to turn their great individual client relationships with single line managers into lucrative corporate customers that will ensure their lasting success and prosperity. After 30 years in recruitment sales I now find myself, as a business development expert, trainer and coach, being asked this question repeatedly several times a week.

In the current economic climate it appears to have become a burning question for so many niche and SME agencies and recruiters.

In my career I have turned ad-hoc supply relationships into corporate clients many times and feel it would benefit my audience to share the key steps that you need to take to achieve this.

The first step on your quest to winning corporate clients is to get to:

Know your Client.

By this I do not mean the line manager with whom you have your existing relationship, their 7645227_sfootball team preference or how many kids they have but understand their business in its totality. You might like to start by finding out:

 

  • Who are the other recruiters and stakeholders in the business?
  • How do they inter-relate?
  • What are their business objectives corporately and as individual functions and departments?
  • Can you obtain an organisation chart?
  • How do they normally recruit staff?
  • Which managers recruit and what sort of staff?
  • What projects are starting, running and ending?
  • Are there any resource deficiencies?
  • What are their business/organisations challenges?
  • Where are their sites located?
  • How does their business work?

These are just some of the questions I would typically look to ask. The list is quite extensive and often one answer leads to a myriad of follow up questions.

Having established a sound understanding of your customer the next step you need to take is:

Know their Business Challenges

15845975_sTo achieve this you have to have truly understood your client in step one as well as grasped their business drivers and their current situation. Typically their challenges will be focused on:

 

  • Legislation or Compliance issues
  • Technology changes
  • New Markets penetration challenges
  • New Products launches
  • Risk of Failure – Business or Personal
  • Project slippages
  • Averting a crisis

In recruitment terms their key challenge will normally be a resource pinch point that results from a skill availability issue. This can be temporary or long term and is sometimes linked to business growth or restructuring challenges.

Once you have fully understood their challenges as well as the interaction between their business dynamics you are then ready to move to step three, which is:

Appreciate the Consequences of failure or success

 

10856674_sTo understand their consequences may need some lateral thought. They generally require you to project yourself into your client’s shoes to fully appreciate their predicament. In large complex organisations this is hard, as you will have multi-stakeholders with different agendas and different views on the same situation.

In addition they will all have different personalities and ways of looking at the same problem. A Financial Controller is likely to view a failing project different to their HR Partner and both may see it totally different from the Head of Compliance or a Marketing/ IT/ Engineering Director. Gaining and understanding these multiple perspectives is an essential step in this process.

For a lot of consultants this requires a huge shift within themselves. Having the ability to project yourself into someone else’s situation is a massive life skill which sadly some people never learn.

Typically the consequences of failure or success for your client may have different impacts for different stakeholders. As you explore these with your contacts during meetings and phone calls you will gain a collective sense of how important the delivery of their outcome is to the organisation overall. Crucially how much value they place upon any solution.

You may also sense that in some cases they have not fully comprehended the full impact or consequences of failure or success. This is not unusual as it is through sharing their problem with a resource expert like yourself that the true picture actually starts to emerge.

If you discover this to be the case you need to show understanding and be respectful of the journey your customer is also on. Allow them space and time to comprehend their situation. Don’t immediately seek to close them. Inappropriate pressure at this point will cause you to break rapport and lose your clients trust. Learning to read clients body language can be quite useful at this point.

To assist you in identifying issues here are a few typical consequence which you might identify:

  • Business failure or success
  • Project failure or success
  • Loss of credibility with customers
  • Loss or increase in market share
  • Financial penalties
  • Loss or increase in profitability
  • Loss or increase in prestige
  • Loss or increase in reputation

In addition the executive sponsor or project lead may have a personal loss or gain too. This too may affect the dynamics of the sale.

By now you will in your own mind probably have started to gain a sense of the optimum solution that works for your client. The final step in this process is to:

Be Creative with your Solution

 

12353883_sNow that you fully understand your client’s challenges and their consequences of failure/success that you will have a sense of the value you client places on finding a solution.

 

To find the optimum solution for your customer you need to be creative and imaginative in identifying the one that delivers the greatest value. The specific solution will depend on such a wide array of factors that its impossible for me to be specific. If you would like to contact me I’d be delighted to discuss any specific situations that you are wrestling with and offer specific advice.

Your clients however will ultimately pay more the greater the value your solution offers them. I have many times secured deals with clients, which cost the client thousands of pounds more than my competitors solution because my solution delivered the greatest value.

Remember the price a client is willing to pay is about value, which is not always intrinsic to your product or service but your clients need or business circumstances.

To discover more about our bespoke four day training programmes where we train and coach your sales teams through this for real call Ian on 07552 555858 or email us on [email protected]