Currently it’s a really buoyant market, and the business is going well.
Across the board recruitment companies are growing their numbers.
If you look on LinkedIn everyone is appointing people. Firms are posting about their three latest hires.
We know that at some point there will be a switch in that market and the market will change.
So, we are thinking, ‘Do we have the right balance of clients, so if one of those stops hiring, we’re covered?’
We like to operate as a fairly stretched workforce, so everyone is busy.
But what happens when the work goes off the cliff and all these recruitment companies with huge numbers of staff when all of a sudden they aren’t churning out as much revenue as they were previously.
At the moment the demand for candidates is much greater than the supply. That’s all it is.
When you’re in a marketplace and your end client can put up an advert themselves and generate however many applicants, and if some of those are good, the demand for recruiters drops.
At the moment good recruiters are worth their weight in gold because if you get a good relationship with a client, they’re giving you the good candidates.
In the technical world If someone is recruiting for a good dev ops engineer right now, they could place them at one of ten of their clients.
So, you want as an end client the recruiter who is giving you the cream of the crop, so you’re getting them first.
It is literally down to that battle of getting the best people. That’s why they pay the fees of that recruiter to get that special treatment and that service.
Whereas before when the market was different, it was almost like a battle to the bottom, where recruiters are just dropping their fees so they can get on the list of suppliers to get the ability to work with someone.
Then they are effectively saying ‘I’ve got this great candidate; do you want to work with me?”
The shift will come, and it will be down to two things, a massive shift caused by an increase in the number of candidates, which I can’t see happening with the Brexit visa situation coupled with the war in Europe.
Or it will be with a recession coming in, and the client themselves stop looking and thinking they have got enough people for the moment and so stop looking to take on more.
That could happen - and with the increase in cost of living at the moment, that could all have a net impact on spends, which then has a knock-on effect to the cost of things people are buying.
In the end companies will think, ’Right, we’re not going to hire any more people now because the demand has gone’.