Wednesday, 13 June 2007

It's Official, Technology 'Wont' Replace Recruiters!!!

I read, with surprise, in Recruiter Magazine today that a report called 'Debunking the Myths' has been produced by Cordoba Consulting for REC and KPMG to tackle questions on managed services and technology within the UK recruiter and employer marketplaces.

I was surprised because I find it difficult for a report to be so definitive in its conclusion that technology 'won't' replace recruiters because "too few employers have a sufficiently well-defined brand or web presence to attract as many candidates as they need".

I wonder if Cordoba included a review of the job board and search marketing industry's when conducting their research because, forgive me if I'm wrong, the low cost level playing field access to job boards, CV databases and pay per click sponsored links in the UK has given even the smallest employers equal opportunity to promote themselves and their vacancies on-line, which for some time has been the most proven method of finding a new opportunity for UK job seekers.

The report is also released at the same time as the CIPD's 'Recruitment, Retention and Turnover Study' which highlights that 73% of businesses surveyed used agencies in 2006, which is down from 76% in 2005. 3% doesn't sound much but a 3% reduction in UK recruitment industry turnover equates to £750 million pounds, which incidentally is more than the turnover of the fourth largest recruitment company operating in the UK by £250 million based on 2005/2006 figures, so not an insignificant sum!

In addition, we continuously read about the record profits and sales figures of technology vendors, including Stepstone Solutions and Jobpartners, who provide recruitment solutions to corporate employers to power their self-hire strategies.

I'm not saying that technology will replace recruiters but there is compelling and documented evidence that it is and will continue to erode corporate employers dependence on agencies, so a report claiming that technology won't have an effect sounds more like it is based on opinion rather than fact.

1 comment:

Anonymous said...

Technology, job boards and search marketing will assist in the erosion of employer dependency on agencies but, of course, will never replace it.

If recruiters focus on filling jobs with candidates who are hard to find they will always be in business and always be successful.

It is those agencies who persist in working vacancies that can be filled easily elsewhere (especially) online who will suffer.

In business we must never forget that providing value for money is key to success.

If the fee you charge for the role you fill is not good value for money (or at worst, perceived to be good value for money) then surely the end is nigh!