Covid-19's impact on recruitment agencies and their future

By Millie Spooner, Saturday 19th March 2022 14:06 pm.

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The past two years have forced the recruitment industry to significantly change its ways, with Covid-19 introducing lockdowns and limiting all human interaction.

During the pandemic, the recruitment and hiring industry needed to adapt and create new strategies to keep up with government guidelines. This started with virtual recruitment, which included video interviews and virtual onboarding.

The creation of a digital hiring process worked incredibly well, saving recruiters and employees both their time and money. Statistics from Capterra show that 94% of HR professionals agreed that the virtual shift 'positively impacted their hiring process'.

The second biggest change for recruiters was a higher demand and shorter supply of candidates, with responses to job applications dwindling after the pandemic. Niki Turner-Harding, the senior vice president for Adecco UK & Ireland, told the NYTimes "...we've got more vacancies than we have candidates".

One potential reason for the recent candidate shortage could be remote working. As restrictions were eased, many workers found they preferred working from home rather than in an office.

So what can we expect from the recruitment industry after the global pandemic?

1) A focus on social media

Social media currently plays a large role in the hiring process, with 79% of job seekers using social media platforms to find vacancies. Currently, LinkedIn is the top social media job search platform, standing at 90%. Whereas, Twitter follows second at 57%.

2) Inclusivity

Just like many other workplaces, recruitment companies are pushing for more diversity in their workplace. This means giving opportunities to those who are often under-represented, based on factors such as gender, race, disabilities, and sexual orientation.

3) Hybrid work

As the world returns back to normal, companies are offering their employees the option to work from home more. There are many benefits to hybrid working for companies, such as higher levels of employee job satisfaction and savings on office space.

However, just as recruiters adjust to life and hire post-pandemic, 2022 has other plans.

With the current inflation crisis in the UK, it holds the threat to majorly affect recruiters and their business. As the cost of living is steadily growing, many workers are beginning to feel cautious about their income. This has the potential to prevent employees from switching jobs and applying to new vacancies.

As well as this, recruiters could have the added stress of financial struggles. For instance, staff costs increase to match the rising inflation. The Bank of England predicts inflation to rise to 8%, with the possibility of it continuing to rise.

Figure of UK's rising inflation [Figure from TradingEconomics.com]