Fall in agency use is no need for panic, says CIPD
31 August 2012
UK businesses' use of recruitment agencies fell again last year, with expense cited as the main turn-off for companies, according to the Chartered Institute of Personnel and Development's latest study
UK businesses' use of recruitment agencies fell again last year, with expense cited as the main turn-off for companies, according to the Chartered Institute of Personnel and Development's latest study on recruitment, retention and turnover.
The survey of 905 employers found that 73% of businesses still used recruitment agencies in 2006, which is down from 76% in 2005.
The report's author Nicola Monson told Recruiter: "There is no need for recruiters to panic because there is still a high usage of recruitment agencies and more than 20% of companies reported an increase use in agencies."
The report found the key driver for organisations' move away from using agencies is to cut down on recruitment costs (72%). Adopting a direct-hire strategy is also identified as another motive for not using or reducing the use of agency services (53%). It found that 81% of employers using agencies do so for hiring temporary workers and 78% for seeking permanent staff.
The report found that 59% of companies fail to evaluate agencies' performance and a third do not have preferred supplier lists.
The report also revealed that 80% of businesses struggled to retain their staff last year, compared with 70% in 2005. The research also shows that recruiting from overseas, targeting migrant workers, training existing staff (89%) and better use of employer brand will help UK employers tackle these problems.
It found that the key reasons for recruitment difficulties are lack of necessary specialist skills (65%), followed by higher pay expectations (46%) and insufficient experience (37%).
The survey of 905 employers found that 73% of businesses still used recruitment agencies in 2006, which is down from 76% in 2005.
The report's author Nicola Monson told Recruiter: "There is no need for recruiters to panic because there is still a high usage of recruitment agencies and more than 20% of companies reported an increase use in agencies."
The report found the key driver for organisations' move away from using agencies is to cut down on recruitment costs (72%). Adopting a direct-hire strategy is also identified as another motive for not using or reducing the use of agency services (53%). It found that 81% of employers using agencies do so for hiring temporary workers and 78% for seeking permanent staff.
The report found that 59% of companies fail to evaluate agencies' performance and a third do not have preferred supplier lists.
The report also revealed that 80% of businesses struggled to retain their staff last year, compared with 70% in 2005. The research also shows that recruiting from overseas, targeting migrant workers, training existing staff (89%) and better use of employer brand will help UK employers tackle these problems.
It found that the key reasons for recruitment difficulties are lack of necessary specialist skills (65%), followed by higher pay expectations (46%) and insufficient experience (37%).
