The latest Report by Staffing Industry Analysts (SIA) shows Indian Direct Hire (permanent recruitment) market in the region of 3600 Crores. It’s a market which has been growing in double digits except for couple of years during recession. As on rolls (Direct Hire) market consists of largely lateral hires, the double digit growth is inevitable given the demand for specialist and niche talent.
The $USD 400 billion recruitment industry worldwide is moving in two spheres. First in the solutions space where organisations are outsourcing their global multi-billion dollar spend on talent. Leading staffing companies have occupied this space. One of the companies describe it as Talent Supply Chain Management (TSCM). The second area of growing interest is for Professionals or Specialist Recruitment Industry.
The Specialist Recruitment Industry is growing fast due to multiple reasons. The world is innovating so technology has invaded every aspect of life hence the demand for IT talent continues to rise. The world is ageing, spend and attention to healthcare is increasing. Demand for nurses, diagnostic professionals have increased exponentially. The world continues to consume fossil based oil. Furthermore green energy is an increased demand from regulators. The need for engineers to tap conventional or alternative resources is driving the need for engineering professionals. In addition to this there is a decline in STEM graduates (Science, Technology, Engineering, and Mathematics) in developed economies. The migration of Professional & Technical Talent to cross borders is adding fuel to the growing demand.
The Indian recruitment market with a known history of about 4 decades now faces new challenges of creating an identity. Corporates in India who have large budgets have very thought-out recruitment strategies. Today recruitment companies compete with external job portals, newspaper advertisements, in-house talent acquisition teams, LinkedIn, Facebook and other social media. Every major city has an average of about 5000 recruitment companies with very little differentiation from one another. Corporates have been challenged since the last recession on recruitment spends. They outsource recruitment only for niche skills or volume spikes. By the time niche roles reach recruitment companies, it’s likely that the corporates would have already scanned the market.
Corporates today hire recruitment agencies for their unique expertise/talent. The strengths they seek are past track record backed up by consultants who have tenure and industry knowledge. While the brand of the recruitment agency does give an entry to customers, it does not guarantee returns. In the war for talent, we will need sharper skills and the know-how to attract the best candidates for our clients. Our depth in recruiting plus knowledge of the client industry will inevitably get us repeat business with our clients.
The long term sustainability for margins and profits are determined by our customers. The wants of our clients are crystal clear: quantity, quality, speed, and the right price. I’m sure the customer would give his/her best business to recruiters whom he/she trusts and respects. The starting point of our business is when a customer gets impressed with our knowledge and expertise. The only way we can showcase these is by responding to the customer needs in time. For that, we need to go beyond last minute browsing of the customer’s website and our case studies. Can we stand up for something which we can call our domain, our specialty?