Recruitment freeze starts to bite
Posted on : 01-09-2008 | By : Gareth | In : Recruiting News
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The economic downturn has now started to hit the recruitment markets says law firm Peninsula.
The law firm has just completed research looking at 1400 employers in the UK. The results show that three out of every four employers are freezing their internal recruitment in response to the credit crunch. Employers simply don’t know what shape they will need to be to survive beyond the present situation, so anything other essential recruitment may simply be a wasted effort.
The trends will now surely hit recruitment agencies everywhere, who to date, appear not to have suffered the current climate in the same way as many other industries. If these figures are consistent it will leave recruitment agencies fighting over a much smaller pool of vacancies, ultimately it will leave agencies also having to look at their own structure and consider redundancies.
The headache is multiplied for employers and recruitment agencies by the fact that employment law in respect of redundancies is more complex than ever. Mistakes in redundancy process can prove very costly at times when additional costs will not help any recovery.
