New survey reveals restructuring and budget constraints still set
to top employment issues in 2010
30 November 2009 –
Research released today by Alexander Mann Solutions (AMS), the
global recruitment process outsourcing provider, reveals that
budget limitations and ongoing restructuring programmes are set to
be HR’s biggest challenges in 2010, although the industry does
appear to be stabilising after the economic crisis with 66% of
budgets remaining unchanged.
The study, entitled The Recruitment Barometer,
suggests that, although the worst of the recession may be over, HR
and recruitment departments will still have to manage with limited
resources to achieve business objectives. A lack of budget was
identified by 36% of respondents as the biggest challenge to HR in
2010, with ongoing restructuring programmes still having an impact,
as the second most concerning issue (32%). There are more positive
signs for the New Year however, with nearly one fifth of HR
managers expecting their budgets to increase in 2010.
The research, which surveyed the opinions of
HR managers at the recent Chartered Institute of Personnel &
Development (CIPD) exhibition in Manchester, also asked respondents
to identify their top investment priority for the coming
year. The top four investment areas for 2010 were, in order:
1) ‘Employee retention and engagement programmes’; 2) ‘Training and
coaching’; 3) ‘Candidate attraction programmes and recruitment’;
and 4) ‘Technology investment in HR’.
The findings suggest HR departments are
anticipating job movements amongst employees as the economic
climate improves, and are seeking to counteract this by boosting
their retention and development strategies. However, the emphasis
on technology and candidate attraction suggests that, with
recruitment budgets expected to remain the same, businesses are
looking to maximise their expenditure by investing in the tools and
expertise that will help get them value for money.
Tom Marsden, Director of Professional Services
at Alexander Mann Solutions commented, “HR departments more than
ever need to add real business value to their organisations. The
results of The Recruitment Barometer suggest that, although the
restrictions of the recession aren’t over yet, companies are
recognising that in 2010, they will need to take steps to retain
their workforce. This could be through an increased emphasis on
training and engagement programmes or by investing in areas that
will optimise expenditure, such as integrated technology systems or
improved candidate attraction schemes. The signs are that HR
departments are preparing to maximise their resources and staff as
organisations look to grow.”
One way businesses can look to optimise their
recruitment spend at a time when budgets are limited is by
streamlining their approach to external suppliers. The Recruitment
Barometer found that, while the majority of businesses are using
services from external recruitment suppliers, more than two thirds
(67%) of HR departments are using multiple suppliers, with as many
as 22% using more than 10.
“The fact that just 20% of HR departments are
working with a single recruitment supplier does indicate that there
is significant room for greater efficiencies in this area,” said
Marsden. “Using numerous suppliers, on an ad hoc basis, makes each
hire a significant budget drain as these agencies can be paid as
much as 35% of the hire’s salary. Managing all your recruitment
agencies through a single strategic outsourcing partner provides
much better value for money, greater control and efficiencies, and
helps organisations get the most out of their time and budgets. By
going further and looking at the resourcing picture holistically,
integrating a broader range of requirements under that arrangement
can see additional economies of scale achieved.”