There is no doubt that there have been massive changes in the industry over the last 20 years. Technology has been the driving source of much of the advances, making it much quicker to find talent and to get CVs in front of a potential employer. A shift from, card index systems to sophisticated recruitment CRMs, from fax machines to email, from printed media advertising to digital etc. etc. All of these have improved certain elements of the service and arguably deteriorated other parts of the service. There is no doubt that an over-reliance on technology, coupled with a massive increase in competition, has eroded the personal element of the service which has undoubtedly impacted quality.
The Contingency Staffing Recruitment Model
However, as much as the recruitment industry has evolved in Ireland the one thing that has remained constant is the contingency recruitment model. Basically, for the vast majority of recruitment assignments, the prospect of a recruitment agency earning a fee is contingent on the agency introducing a suitable candidate to the employer and on that candidate subsequently commencing employment. This has been casually referred to over the years as a “no foal no fee” service. While this model made sense in the early days of the recruitment industry, one would have to question how that sort of recruitment service is relevant today.
Originally there was Little Competition for Recruitment Agencies
Forty years ago there were just a handful of recruitment agencies in Ireland, and even by the early 1990’s, the number of relevant agencies was small. Speak to anyone who started their career back then, and they will tell you stories of how vacancies would constantly roll in by fax with many recruitment agencies having what they called a “vacancy controller” employed specifically to manage the inflow of job requirements from clients. Put simply; there was little or no competition.
The Current State of the Irish Recruitment Market
Today, the landscape is completely different. There are now over 600 recruitment agencies licensed by the Department of Jobs, Enterprise, and Innovation. Also, there are dozens who are operating with no license at all. Many employers feel that they will get the best results if they give their assignment to multiple agencies, all competing against each other on a contingency basis.
Here are some thoughts to ponder.
● Statistically, a recruiter working on a contingency basis has to work 5 or 6 assignments to be guaranteed one fee. Therefore 80% of their efforts do not result in a fee, and only 20% of their focus is on the job that they will ultimately get paid for. This means quality has to be compromised. Often good candidates are overlooked, and poor candidates are included just to make up numbers.
● If 80% of contingency assignments result in no fee that means that the remaining 20% are subsidising the costs involved in providing a service to the other 80%.
● Is it really in the best interests of an employer to have multiple agencies competing to fill an assignment on a contingency basis whereby there are inevitably more losers than winners? Employers frequently complain about the “scatter gun” approach adopted by many agencies, yet it is this open competition that forces recruitment agencies to sacrifice quality for quantity.
● To mitigate the perceived risks of dealing with multiple recruitment agencies some employers implement PSLs and SLAs. These add another layer of administration for the client and more overhead on the recruitment agencies to work harder and quicker to provide CVs.
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FAQs
The market size of the Employment Placement Agencies industry in Ireland is measured at €4.1bn in 2023.
Is the recruiting industry growing? ›
Staffing and Recruitment Market is growing at a CAGR of 12.7% from 2022 to 2030.
How was recruitment done in the past? ›
In ancient civilizations like Sumer, slavery served as the crudest form of recruitment, where individuals were treated as property. However, as societies developed and specialized labor became essential, recruitment shifted towards selecting individuals with specific skills and qualifications.
How recruiting is changing? ›
A new recruiting playbook
Talent acquisition (TA) will be at the forefront of helping employers navigate these and other challenges, but the talent playbooks of the past will no longer apply. As employer priorities shift, TA will need new skills, new tools, and agility to attract, hire, and retain the best talent.
Which industry is booming in Ireland? ›
Ireland is a leading hub for software engineering, with the industry employing over 105,000 people and generating over €12 billion in exports annually. The demand for software engineers in Ireland continues to outstrip supply, with the industry projected to grow at a CAGR of 8.5% between 2021 and 2026.
What is Ireland's number one industry? ›
The main service industries are pharmaceuticals, chemicals, computer hardware and software, food products, beverages and brewing and medical devices computers and contribute to 29% of GDP.
What is the hardest industry to recruit for? ›
Most Challenging Industries for Recruiting
- Information Technology. The rapidly evolving field of information technology (IT) is one of the most challenging industries for recruiters. ...
- Healthcare. ...
- Engineering. ...
- Hospitality. ...
- Construction. ...
- Financial Services. ...
- Retail. ...
- Creative Industries.
Our place in the world
It is the third largest market by agency work revenues, behind the USA (1) and Japan (2). These three markets make up the majority of revenues (54%) at the global level. It is the fourth largest market in permanent recruitment globally, behind the USA, Australia, and China.
What is the number 1 recruitment source? ›
1. Job Boards and Online Hiring Platforms. Dedicated job listing websites are a convenient choice for external hiring. Many professionals and job seekers join these platforms to stay updated on job vacancies that match their skills and interests.
How has recruitment changed in recent years? ›
The biggest change is the availability of Recruiting Management Systems, which are intended to make the whole process easier. However, the human factor is still involved in the final decision, which means that recruiters still have massive responsibility in recruiting processes.
A recruitment basically consists of three distinct phases. The work before posting an ad for the vacant position, the selection process and finally choosing the right candidate.
How has LinkedIn changed recruiting? ›
In the current digital age, LinkedIn has risen as a highly impactful platform that drastically affects the recruitment and staffing sector. Exhibiting a vast spectrum of professionals from diverse fields, LinkedIn has revolutionised the technique through which organizations allure, assess, and bring in talent.
Why are recruiters more stressed nowadays? ›
Lack of Resources
Most of the time, recruiters are overwhelmed with applicants and referrals. They don't have adequate resources to respond to each one of them. Having minimal resources to do the job widens the gap between what one wants to do and what one can do when it comes to a Human Resources job.
Is recruiting slowing down? ›
Hiring in corporate America is slowing down and economists don't agree on what it means for 2024. Hiring in corporate America has cooled. On an individual level that might sound like cause for alarm, but it's also in line with the Federal Reserve's battle against inflation.
What is the most common recruiting mistake made by recruiters? ›
Here's our list of 10 common recruitment mistakes.
- Not creating an accurate job description.
- Failing to consider recruiting from within.
- Relying too much on the interview.
- Using unconscious bias.
- Hiring people less qualified than you.
- Rejecting an overqualified candidate.
- Waiting for the perfect candidate.
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| Sector | No. of employees |
|---|
| Retail, wholesale | 372,600 |
| Health, social work | 273,500 |
| Industry | 259,100 |
| Tourism industry | 206,100 |
6 more rowsMay 21, 2023
In 2022, agriculture contributed around 1.08 percent to the GDP of Ireland, 41.05 percent came from the industry and 52.3 percent from the service sector.
What is the biggest field in Ireland? ›
From its centre, the land stretches as far as the eye can see. This is Ireland's biggest field. Extending to 334ac in total, the field at Hilltown, Bellewstown, Co Meath, has no divisions and can be worked as a single unit by owners Michael and Marie McGuinness. The field has a fascinating history.
How big is the recruiting industry? ›
This was worth nearly 220 billion U.S. dollars. The staffing and recruiting industry includes companies which help other organizations find staff.
