The latest Report by Staffing Industry Analysts (SIA) shows Indian 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 Permanent recruitment market consists of largely lateral hires, the double digit growth is inevitable given the demand for professional and niche talent.
The $USD 400 billion recruitment industry worldwide is moving in two spheres, first in the solutions space where organizations are outsourcing their global multi-billion dollar spend on talent; many large staffing companies have occupied this space and this is growing as a concept known as Talent Supply Chain Management (TSCM). The second area of growing interest in the talent market is for Professionals or Specialist Recruitment Industry as some would like to call it.
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 aging, spent and attention to healthcare is increasing with more and more nurses, diagnostic professionals and doctors being in demand. The world continues to consume fossil based oil. The need for engineers to tap into this or alternative resources is driving the need for engineering professionals. Adding to this, the decline in STEM graduates (Science, Technology, Engineering, and Mathematics) in developed economies and the migration of Professional & Technical Talent to cross borders adds 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 spent have very thought-out recruitment strategies. These days we see recruitment companies competing with external job portals, newspaper advertisements, in-house talent acquisition teams, LinkedIn, and other social media. Corporates today have more choice inclusive of the use of boutique recruitment agencies. Every major city has an average of about 5000 recruitment companies with each displaying 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 the niche roles is given to be filled by recruitment companies, it’s likely that the corporates would have already scanned the market for some time.
Corporates today hire recruitment agencies for their unique expertise/talent. The strengths they look for 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, the brand does not guarantee returns. In the war for talent, talent always wins and needless to say, we will need sharper skills and the know-how to attract the best candidates for our clients. Our depth of experience in recruiting combined with our knowledge of the client industry will inevitably get us lucrative and repeat contracts 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 displaying our understanding of what the customer wants. 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?
Rather than skate on thin ice, equip yourself with relevant specialization!