Recruitment is the top problem for more than half of all UK companies ahead of business strategy or management, according to a new study by KPMG and the Recruitment and Employment Confederation (REC).

Rav Bains, principal at KPMG sourcing advisory services, says: “Most employers realise that modern recruitment is going beyond the remit of a traditional HR function. What we are seeing is that many HR departments now view their role separated into two functions - one revolves around typical HR issues such as managing staff and staff relations, and the other one recruitment, finding the right people in the first place. This is driving a marked change in the HR services market.”

The research found that 80% of those surveyed use a combination of in-house recruitment and agencies to find staff.

The survey predicts that over the next one to two years, most employers will have a career section on their corporate site and make some efforts to move recruitment communications online, assisted by agencies offering support and services.

KPMG foresees greater consolidation in the market, however, there will be a role for both bigger and smaller players. Ultimately, the winners will be those who change their business models fast enough and deliver what the market wants.”