By Ben Chernoff, Director at Davis Grant
According to new data from the Recruitment & Employment Confederation (REC), the number of new UK job postings is soaring as the nation begins to leave lockdown.
The latest figures show that during the week of 5-11 April, a further 140,000 new job openings were recorded, taking the total number of active job adverts in the UK to 1.37 million postings.
This surge in advertised job posts is on top of another 181,000 recorded in the previous week – the highest weekly figure since the pandemic began.
In fact, according to the REC the three best weeks for new job postings have all come since 8 March, which it says reflects rising business confidence and a willingness to hire new staff.
This is positive news for the recruitment sector, which has faced numerous challenges as a result of COVID-19.
As agencies begin to increase their workload and take on more contracts there are certain things that they must consider. To highlight these issues, we have produced a list of top tips below:
- Cash flow – With many agencies facing reduced demand in the last 12 months, cash flow continues to be a challenge. Recruiters must continue to carefully monitor and forecast projected cash flow so that they have the capital to meet their commitments. A cash flow crisis is one of the most common reasons for company failure.
- Credit control – Although agencies may be engaging with more businesses and employers in the months ahead, they should be aware that many sectors still face cash flow issues. With money being tight in many industries, recruiters should tighten up their processes on late payments and credit control to ensure they get paid on time. Increasingly technology, in the form of credit control software, can help businesses to reduce late payment issues.
- Finance – As businesses recover, they may need finance to grow or cover a lack of working capital. There are various methods of financing a business, including invoice and debtor finance that can assist with this. However, agencies should be aware that many of the Government-backed COVID loan schemes are now closed and the one remaining Recovery Loan Scheme, includes a much tougher application and credit check process.
Although the future is certainly looking much brighter for the recruitment sector, it is by no means ‘out of the woods’.
Ahead lies a challenging recovery, which is why many recruiters could benefit from the advice of experts that understand their industry.
At Davis Grant, we have spent years working with and supporting recruitment agencies, helping some of the UK’s largest and most successful companies flourish and grow. To find out how we can assist you, please contact us.