10 insights from John Nurthen (SIA) on the staffing industry of tomorrow

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For years, Staffing Industry Analysts has provided anyone working within the world of recruitment with valuable insights. For more than 30 years, they’ve been the primary source for the latest trends and developments on a global basis. SIA, therefore, is about as well-equipped as any organisation out there to look forward and predict where things may be headed. During an invite-only event in the Netherlands, Staffing Industry Analysts’ John Nurthen presented 10 insights on the staffing industry of tomorrow. Nurthen himself has 25 years of experience within the staffing industry, having previously worked in senior managerial roles for three of the world’s largest staffing companies: Select Appointments, Vedior and Randstad. He played an active role in major equity offerings and mergers.

10 insights on the staffing industry of tomorrow

Let’s delve into Nurthen’s 10 insights for the staffing industry.

#1. China is growing fastest but Europe is still dominant

As is often the case, the greatest growth can be found in China. Between 2013 and 2022, the Chinese market increased by more than 300%. But other notable risers were European: Ireland’s staffing industry surpassed 250%, while Poland surpassed 200%. Italy, Spain, Finland and Sweden also all rank within the staffing market revenue growth top 10. That’s pretty surprising, says Nurthen.

“When we talk to investors who want to go to the European mainland, you often hear that they want to go to the Netherlands and Germany. But if you look at this data, you might want to look at other countries first. For example, I rarely hear from investors that they want to go to Belgium, while they always mention the Netherlands. While Belgium is doing slightly better than the Netherlands. ‘

Source: John Nurthen (SIA)

#2. Randstad withstood the pandemic just fine

The staffing industry obviously took a fall throughout the COVID-19 pandemic, but when we look at the big three, Randstad seems to come out on top during the recovery period compared to Adecco and ManpowerGroup, based on staffing revenue. Recruit, the Japanese parent brand of Indeed (among others), seems to be the surprising champion of the industry. In terms of market capitalisation, Recruit singlehandedly exceeds the valuation of the top 13 listed staffing firms operating in Europe. “They seem to have managed to convince investors that they’re a tech company”, said Nurthen. “When, in fact, much of their revenue comes from straightforward staffing.”

Source: John Nurthen (SIA)

#3. The tightness is everywhere

It’s nothing new, but SIA and Nurthen’s statistics clearly showed that the shortage is by no means an exclusively a European phenomenon. In eight countries studied (Japan, Germany, the Netherlands, US, Australia, UK, Australia, and Belgium), unemployment was at its lowest level since 2000. Only Italy did not see a record low in unemployment in the second quarter of 2022.

Source: John Nurthen (SIA)

“Finding people has never been so difficult. That also offers good opportunities for employment agencies.”

The same sentiment is also reflected in the number of vacancies, which continues to rise. Across Europe, there are now even more than 17.5 million open vacancies, Nurthen said, citing Textkernel figures for the UK, the Netherlands, Germany, France, Spain, Italy and Belgium. Spain has seen the greatest growth. Nurthen called the data “extreme”. “Finding people has never been so difficult. That also offers good opportunities for employment agencies. Because remember: your customers don’t want to use you. They prefer to do it themselves. But they just can’t do that.”

#4. Potential market disruptions

But those good opportunities don’t just come to those who wait, Nurthen said. After all, there are many risks lurking. Societal issues, but also ecological issues. SIA sees loss of social cohesion (27.88%) as the greatest danger, followed by livelihood crises (25.5%) that is under pressure and the lack of action to combat climate change (25.4%). “So: Merry Christmas everyone”, Nurthen added jokingly.

#5. Dutch staffing industry will grow

Despite potential disruptions, Nurthen still sees growth ahead for the Dutch job placement market, which he highlighted as his session took place in the Netherlands. In total, the total market is expected to grow by about 5% this year, and another 3% in 2023. In total, that would mean the Dutch market surpasses 24 billion in turnover for the first time, which subsequently means a growth of 60% in 10 years. That means that the staffing industry would account for approximately 3% of the total Dutch GDP.

#6. ‘Opportunities are there for the taking’

Nurthen sees opportunities in the entire HR chain. Staffing firms and other workforce intermediaries have opportunities beyond just matching candidates and employers? Why not add education to the business model? Or coaching? Or HR consulting?“Opportunities are there for the taking, throughout the entire candidate and client journey”, Nurthen added.

#7. Digital transformation and car washing

Further digitalisation, however, should be a prime source of growth, Nurthen outlined. Not so much in the first steps, in which you replace the Rolodex with a database, so to speak, but in the most far-reaching form: a complete change of your business model and proposition, in which digitisation is the starting point. Instead of just a means to work more efficiently. “We’re in the early days of this right now”, Nurthen said.

However, Nurthen cited a good example about the impact of digitisation and the fear that this often brings about. He suggested that automation isn’t necessarily heading in one clear direction. Take the number of fully automated car washes in the United Kingdom — which has decreased rather than increased since 2003 by about 50%. At the same time, however, the number of car washes where people clean your car has increased by 50%. Here is an example of humans taking the jobs of robots. “Because the labor is so cheap and humans are pretty good at washing cars”, says Nurthen.

The so-called Lava Car Wash: where automatic car washes are enhanced with human interaction for the finer details. “There is a good analogy there.”

At the same time, Nurthen also sees a more ‘hybrid’ form emerging. The so-called Lava Car Wash: where automatic car washes are enhanced with human interaction for the finer details. “We see exactly the same thing happening in the staffing industry”, he said. “The self-service option, and the superior option. So there is a good analogy there. And I think more and more agencies will have to choose which side they want to sit on.”

#8. IT continues to grow

Worldwide expenditure on IT is still growing faster than the GDP. Because of one thing: digitisation. It has been growing, and will continue to do so for the forthcoming months and years, according to SIA calculations. “The main challenge is not to panic because of this”, Nurthen said. “Because technological developments are growing so fast, it’s increasingly hard to keep up.” Today’s challenge is to avoid anxiety attacks, psychotic breakdowns, heart attacks, and strokes as a result of being accelerated to death.

A large – and growing – global skills gap is therefore a real risk, Nurthen said. But according to him, that isn’t all bad news for the intermediaries. “All major temporary employment agencies are now investing heavily in reskilling and upskilling, and are buying companies that specialise in this. Under the mantra of: grow the talent yourself.”

#9. Aya Healthcare, the ‘Uber of staffing’?

The entire intermediary market may well become ‘the new fintech’. Or, putting it more clearly: the market where exciting things happen. The investment of $250 million in Spanish staffing platform Jobandtalent this year is an example of this, according to him, given they plan to invest the money in developing more flexible payments for temp workers. New investments in blockchain to store candidate data is another example of innovation that has the potential to offer efficiencies for jobseekers, intermediaries and employers.

Aya Healthcare is now America’s largest healthcare staffing agency and is expected to achieve over $11 billion in sales this year following growth of more than 300% in 2021.

The development of more automated platform-type services is set to transform a number of staffing sectors. One staffing firm is achieving Uber-like growth numbers supported by a platform delivery model, Nurthen said. Aya Healthcare is now America’s largest healthcare staffing agency and is expected to achieve over $11 billion in sales this year following growth of more than 300% in 2021. Comparing those growth statistics with that of Uber in the 2014-2018 time period, the resemblance is striking…

#10. Omnichannel is everything

We have entered the era of extreme recruiting, Nurthen concludes. In which pay rates can escalate and a true arms race for technology is taking place. The boundaries of the profession will therefore likely be stretched. It is, therefore, important for those within the staffing industry to stretch and aim to be omnichannel enabling clients and candidates to interact with you according to their preference. “So it’s time to think carefully about your own place in that landscape.”

“The future is bright”, Nurthen concludes. “Bring your sunglasses.”

But nevertheless, Nurthen wants to end on an optimistic note. There are so many opportunities, he says, and so many interesting developments coming up. From biotech to combating climate change. From discovering space to continuous technological innovation. “The future is bright”, Nurthen concludes. “Bring your sunglasses.”

The 10 most important labour market and recruitment trends for 2023 (part 3/3)

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Do you want to be able to recruit successfully in 2023? Then it’s not just down to having the right set of in-house recruiters, but also how you organize the process. In the current labour market, it appears as if crisis and panic are the constant variables. But if nothing is certain anymore, let recruitment be the oasis of peace, since it is the best-equipped field that knows how to deal with constant uncertainty. My ten predictions for 2023 are just about that. It’s about whether you need to set up a professional recruitment apparatus, whether you’ve got an agency or corporate background. 

Read the first trends article here,
and the second trends article here.

#7. SWAT teams and black hole recruitment

Even with such a scarce supply of candidates, employers and agencies still lose many quality candidates in the process. From silver medalists to people who are still waiting for a job interview or rejection they should have received weeks ago. I dare to say that today more candidates still disappear into the vast array of darkness that are (internal) procedures than those that are actually hired or offered a job. Welcome to the era of black hole recruitment, for which I have a couple of suggestions.

I dare to say that today more candidates still disappear into the vast array of darkness that are (internal) procedures than those that are actually hired or offered a job.

If you value your applicants, every applicant and candidate should have a dedicated recruiter assigned to them within 24 hours. If that doesn’t happen, the candidate goes to the recruitment SWAT team, a group that immediately takes over if and when the recruiter responsible for that candidate doesn’t do anything within the first full day. That team can offer non-placed or rejected candidates an alternative within the same organisation, or at other companies — agencies, for example.

In the Netherlands, Alliander has a special RTR-team for recruitment, training and retention. Broadly speaking, these teams look at different ways to attract, retrain and retain talented people for the organisation. Because if someone no longer fits on one side of the organisation, that doesn’t say anything about a potential fit on the other side. In other words: it would be a huge shame if they were lost. I think it’s brilliant.

#8. Lead the way in decency

In the coming years, the pressure on recruitment practices to be decent will increase. From 2025, temporary employment agencies must be certified in Europe. The EU is also preparing for much more transparency, fairness and equal pay. The city of New York and some states in America already demand that a salary range be mentioned in vacancies, Google for Jobs also ‘forces’ the market in that direction, SmartRecruiters has been advocating for more equality in the process for years and Adzuna recently started a worldwide petition for salary transparency.

While we can’t yet speak of any enforcement or regulation — the only right thing to do is to take flight and lead the way in decency.

It’s clearly trending in the right direction, but with the vast majority of the market (MSPs, RPOs, headhunters, payrollers and corporates) still seemingly getting off the hook. While we can’t yet speak of any enforcement or regulation — the only right thing to do is to take flight and lead the way in decency. Being transparent about salary, embracing something like the Recruiter Code (or your local version) and charging decent rates when mediating freelancers and temporary workers. A mutual anti-recruitment clause is also crucial in this regard. This could mean that agencies, at companies for which they mediate, may not mediate employees within a period of 2 to 3 years, in order to prevent ‘hollowing out’ of organisations.

#9. Make recruitment fun

Just as a broken clock tells the correct time twice a day, successful recruiting has little to do with chance or luck. Successful recruitment is the result of a good data-driven process and excellent employer- and leadership. To align recruitment with success, you must also make recruitment fun. It is therefore essential that the workload is manageable. As a guideline, a workload of 10 to 12 active vacancies per recruiter seems fair, just so that recruiters can actually focus on the tasks at hand.

No new tools or systems, but a manageable workload is a first step towards happiness at work and building recruitment success.

That number may not seem like much, but at the end of the year you’ve got an opportunity to make more than 60% more hires, because the turnaround time and percentage of filled vacancies are much higher. And the chance that you have failed as a recruiter is much smaller. No new tools or systems, but a manageable workload is a first step towards happiness at work and building recruitment success. In addition, I think that every recruiter should — in any case — have had extensive internal or external training in the field of recruitment, labour market communication and/or sourcing. And at least have a basic understanding of Excel.

#10. Be the designated person for the unpredictable

About 5 years ago, recruiters barely used WhatsApp, while this was app used most by candidates. After after all, we treated it as the private domain of candidates, or that was the reasoning behind it for many people. That has now changed considerably. And the candidates seem to appreciate it. If recruiting through old-fashioned and traditional procedures, guidelines, rituals, customs and protocols is not always easy, we should not be surprised. I’m not saying you should throw your organisation’s values overboard (never do that!), but keeping up with the times is essential.

Having someone in place who can thrive on the unpredictable and is able to inspire those around them gives you the best chance of realising any type of employer impact.

Recruiters who often complain about hiring managers and internal procedures have also become part of ‘the system’. That’s why it’s important to have someone on the team who is the designated out-of-the-box-thinker. Someone who thinks and acts differently. Someone who constantly looks for innovation in processes and challenges authority. Having someone in place who can thrive on the unpredictable and is able to inspire those around them gives you the best chance of realising any type of employer impact. I would happily apply for such a position, although I think I will stay with Intelligence Group for a while. Good luck in 2023!

Want to read all the trends?

This article is part of a three-part series written by Geert-Jan Waasdorp, the CEO and founder of Intelligence Group, the European market leader in talent intelligence. Part 1 is available here, and part 2 is available here. 

HackerRank, Hellohire, SmartRecruiters and The Martec team up to organise the ‘biggest speed hiring event in history’

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New year, new career. That’s the mantra with which HackerRank, HelloHire, SmartRecruiters and The Martec are aiming to help both companies and candidates start the year on a bright note. The event, set to take place from January 16 to 20, will be free for all users through the Hellohire service. Hellohire is a speed interview and virtual hiring event platform that aims to help you meet more candidates and hire faster. They’re offering companies the chance to interview thousands of pre-qualified candidates in 5-minute virtual sessions. 

Hellohire was founded by Ravin Shah in 2020. “Recruiting is ready for change”, Shah wrote upon introducing the new service. “In today’s world, robots are taking over and recruiting technology has made the process faceless for most candidates. Whether it’s automation or AI, increasing efficiency for recruiters has been at the expense of the candidate experience. Candidates are required to jump through hoops before recruiters will even speak to them. We’re on a mission to make recruiting human again.”

Hiring anywhere, anytime

So what was the rationale behind it? “Many of our customers and partners have been affected by the wave of layoffs hitting the tech sector”, says Stanislaw Wasowicz, Director Alliances at SmartRecruiters. “We had to make tough decisions earlier this year as well, so we set out to help the people affected. That quickly expanded to anyone that’s looking for a new career move.”

“We would have to settle for a certain time and timezone, which would exclude a lot of employers and job seekers from being able to participate.

Originally SmartRecruiters wanted to host a virtual careers fair, but that had its limitations, Wasowicz explains. “We would have to settle for a certain time and timezone, which would exclude a lot of employers and job seekers from being able to participate. HelloHire specialises in allowing companies to promote, schedule and conduct speed interviews at scale, anywhere in the world, at times that work for them. They recently launched on the SmartRecruiters marketplace, so we reached out to them and the rest is history.”

Thousands of talented job seekers

Stanislaw Wasowicz

On the candidate side, HackerRank and SmartRecruiters have allowed for their databases to be used for free — as they line up candidates looking for a new career move. “Tech talent affected by layoffs, retails staff looking for a change of scenery, sales professionals feeling like a new challenge, warehouse operators ready to add more hours, anyone your looking for, we’ll try to get them there and inform you in advance”, Wasowicz adds.

“For most of the employers signing up, it will be the first time they try out speed interviewing, so there’s a good amount of buzz and excitement.”

So far, the reactions have been great, according to Wasowicz. And from all over the world, across a variety of sectors. “We’ve seen sign-ups from employers all over the world, submitting jobs ranging from software engineer to caretaker and even a match teacher. The fact that HelloHire has been so kind to offer their state-of-the-art technology free of charge obviously helps. For most of the employers signing up, it will be the first time they try out speed interviewing, so there’s a good amount of buzz and excitement.”

‘Speed interviewing doesn’t equal speed hiring’

Though as recruiting with speed may lead to butts in seats quicker, the concept is still being seen by some critics as a problematic form of recruiting. After all, how do you ensure speedy hires aren’t bad hires? “As with regular interviewing, this is very much up to the employers’ hiring process and skills”, Wasowicz says. “HelloHire’s technology allows for an element of pre-qualification, because employers can add knock-out questions candidates have to answer when signing up to be interviewed.”

“Speed interviewing hasn’t been conducted at this scale yet, so I’m very excited to see what comes out of it and what we’ll all learn from it.”

“Also, speed interviewing doesn’t have to equal speed hiring”, Wasowidz adds. “Some employers might extend offers to candidates on the spot when convinced. Others might use the speed interview session as “top-of-the-funnel” activity to quickly get impressions of candidates that applied for their positions, that go beyond their resumes, but will still move them forward in a traditional, multi-step, hiring journey. I’ll be keeping a close eye on the results myself. Speed interviewing hasn’t been conducted at this scale yet, so I’m very excited to see what comes out of it and what we’ll all learn from it.”

‘Now is the time to sign up’

Could this form of speed hiring become the norm? “Time will tell”, Wasowicz says. “Right now, we’re focusing on making this event a success, measured by the number of people we connect to jobs at scale. We’re having a great time doing it, so who knows. Employers that enjoy this approach and see it contributing to their hiring success can obviously organise as many speed interview sessions as they want using HelloHire’s technology. That will come at a price. If they want to give it a shot for free. Now it is the time to sign up, submit and promote their jobs.”

Read more:

The 10 most important labour market and recruitment trends for 2023 (part 2/3)

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Do you want to be able to recruit successfully in 2023? Then it’s not just down to having the right set of in-house recruiters, but also how you organize the process. In the current labour market, it appears as if crisis and panic are the constant variables. But if nothing is certain anymore, let recruitment be the oasis of peace, since it is the best-equipped field that knows how to deal with constant uncertainty. My ten predictions for 2023 are just about that. It’s about whether you need to set up a professional recruitment apparatus, whether you’ve got an agency or corporate background.

Read the first three trends here

#4: Scale down on your ‘necessary’ channels

A hammer sees every problem as a nail. In recent decades, the recruitment industry has been dominated by LinkedIn, Indeed and employment agencies. Amidst a wall of staff shortages, a scarcity of talent and bad responses to vacancies – we have to resort to other solutions. Are you looking for a shoemaker? Then your best bet may be to spread actual, real-life flyers. Are you looking for technical talent? You could set up a referral program, such as organising a ladies night for their wives. Do you want to find students? Then work with platform technology, ensure you’re visible on campus in study-rooms.

I prefer to focus on referral and out in the field.

More agencies, sourcing, interim recruiters, recruiter seats, higher budgets and more advertising? I hate to break it to you, but it isn’t going to solve your recruiting issues. They’ve become the proverbial hammer that is trying to turn any problem it finds into a nail. For me, I prefer to focus on referral and out in the field. Close your laptop and be where the candidates are. At events, hardware stores, in schoolyards or even in the supermarket. Or… your own workplace.

It’s about active talent management before calling every problem a ‘sourcing problem’.

Internal mobility is the number one sourcing channel in Belgium – and looks set to be the secret weapon for recruitment success. In many countries, including my country The Netherlands, we have a real tendency to look on the outside first for external candidates. But what we’re seeing is that companies and countries in which HR pursues an active strategy for retention and further training of current employees – are generally much less reliant on outside recruitment. It’s about active talent management before calling every problem a ‘sourcing problem’. Internal promotion and career development is one of the strongest weapons for retention and more productivity and effectiveness of the organisation.

#5: Candidate as the centre

We’re all being bombarded with the importance of the employee journey and candidate experience. And I’m not against putting the candidate first, but I prefer to talk about the candidate as the centre. To me, that is a different approach and let me explain why. We are all used to UberEats and Amazon delivering with speed. In many ways, that speed showcases the level of service at which we want to be served. If you’re interested in something, you’re used to it landing on your doorstep a day later… at the very least.Back to recruitment – when a candidate is interested in a job, they want to schedule an interview immediately rather than having to wait until a recruiter’s finally got time.

Help them flip the script: provide questions they can ask the hiring manager.

In addition to that speed, he or she wants to be treated equally in a transparent process and get a real view on the organisation through potential colleagues. These are all very reasonable questions – yet most candidate processes don’t offer a single answer to these questions. Instead, it is still filled with traditional, time-consuming procedures. Try sending an introductory video from a hiring manager or recruiter to the candidate. Send the candidate cheat sheet with questions that he or she will get during the interview. And help them flip the script: provide questions they can ask the hiring manager. Changing your recruitment procedures is only possible if you really view the candidate as the centre.

#6: Employer impact

Source: Tony’s Chocolonely

Out of sight, out of mind. Being an unknown to a candidate handicaps your chances of recruitment them tremendously in a tight labour market. No real time spent on an employer brand? Then you’re going to struggle in this market – because temporary employment agencies jump on any talent that shows any type of willingness to move. After they’ve reeled in their nets, there won’t be much left for the rest of the market. Building an attractive and well-known employer brand takes at least 18 to 24 months. If you are going to invest now, count on spending at least three-monthly salaries per person you want to hire in the next three years. And even then, you will only reap the rewards in about one and a half years… at the earliest. That’s why it’s so crucial you think about an employer impact strategy.

Build a distinctive employer brand and showcase to candidates that you’re exceptionally good at one thing.

Impact is the common denominator here. Build a distinctive employer brand and showcase to candidates that you’re exceptionally good at one thing. Subsequently implementing consistently it in the application process, the website, sponsoring, events, terms of employment or leadership can be enough. For example, try sending the contract before the candidate applies. Or print the contract on a chocolate bar wrapper. Or pay candidates to apply. Sometimes you don’t need a lot of budget… but you do need guts to try something different. Then you create an environment in which your target group can no look beyond you.

Did you miss the first 3 trends for 2023?

This article is part of a three-part series written by Geert-Jan Waasdorp, the CEO and founder of Intelligence Group, the European market leader in talent intelligence. Part 1 is available here, and part 3 will be published in the coming weeks.

The 10 most important labour market and recruitment trends for 2023 (part 1/3)

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Do you want to be able to recruit successfully in 2023? Then it’s not just down to having the right set of in-house recruiters, but also how you organize the process. In the current labour market, it appears as if crisis and panic are the constant variables. But if nothing is certain anymore, let recruitment be the oasis of peace, since it is the best-equipped field that knows how to deal with constant uncertainty. My ten predictions for 2023 are just about that. It’s about whether you need to set up a professional recruitment apparatus, whether you’ve got an agency or corporate background.

#1. Make your problem bigger

Who wants the best solution to short any type of labour market tightness? Then first greatly enhance your recruitment problem. Yes, you heard right. Make it bigger. Don’t think about the next quarter, think about the next three years. Instead of 25 people (small problem, you need to recruit 300 people (great challenge). And if turnover is disappointing or more people are needed, the required amount can increase to 500 people in 3 years. Now those 25 people look like peanuts, don’t they?

Absenteeism has skyrocketed in the Netherlands, according to the Dutch Bureau for Labour Market Statistics (CBS).

That scarcity isn’t going anywhere – partly due to absenteeism doubling over the past 10 years and because people want to work fewer hours.

The next question is: How do you solve that? Your story needs a different tone-of-voice. It needs to be a story wherein a lot of new recruits are needed, which is an extremely difficult challenge resulting in potential jeopardies for your business. That scarcity isn’t going anywhere – partly due to absenteeism doubling over the past 10 years and because people want to work fewer hours. All of it makes the recruitment problem even more challenging.

The framework of European labour markets will not really change in the forthcoming year, 2023. It’s a situation where you can’t rely on governments for stop-gap solutions; change must come from within the market itself. And that marker is currently one wherein the candidate is placed firmly in the driver’s seat. Employers and intermediaries who carefully listen and respond to that sentiment will be winners in 2023.

#2: Think of the Talent Value Chain

While we’ll continue to talk about shortages, there’s certainly no shortage of data in recruitment. With solutions like Eightfold, Gartner, Giant, Horsefly, Jobdigger, KellyOCG, LinkedIn and Randstad around, talent intelligence is a booming industry employing thousands of smart brains around the world. In his book Talent Intelligence: Use Business and People Data to Drive Organizational Performance, author Toby Culshaw defines it as ‘leveraging the power of Talent Intelligence (TI) to make evidence-informed decisions that drive business performance by using data about people, skills, jobs, business functions and geographies.’

By having a grip on external and internal data (or: HR analytics), the talent available on offer is traceable, approachable, accessible, and easy to recruit. By also having insight into internal and external demand (with Foresight, for example), you also get a grip on the predictability of your needs. Being able to translate this information into strategy, together with the right vision, is the foundation for any type of recruitment success.

Why wouldn’t you appoint a Talent Intelligence Expert within your team?

Source: The Future of Talent Institute – Kevin Wheeler

Kevin Wheeler once listed all the information you need to master the Talent Value Chain. Because, as Wheeler succinctly put it: “Whoever dominates or controls the supply chain wins the war for talent”. So, why wouldn’t you appoint a Talent Intelligence Expert within your team? Someone who keeps track of the supply (external), the demand (internal), the competition (the market) and has a grip on fluctuations (internal and external). Someone who keeps an eye on the costs of ‘empty seats’, freelancers and all other trends. This role fuels the entire recruitment process. It’s not something extra to put on a plate of one of your recruiters – even if you have the right dashboard in place. The right data is just the starting point.

#3: Automate and collaborate

Anything you can automate, you should automate. This way you have more time and attention for the most important stakeholders: the candidate, the hiring manager and the board. Under no circumstances can or should you automate the recruiter, as this role has only become more business-critical (and there is also a great shortage of good recruiters). Embracing automation separates the boys from the men, from data-driven vacancy intake to the proper onboarding of new employees. But beware, less is more. It is better to master a few tools very well than many tools not at all or only to a limited extent. Everything revolves around the control of the tooling you have and that is where things often go wrong.

I expect that many traditional competitors within the labour market will work together to recruit talent in the market.

In addition, I expect that many traditional competitors within the labour market will work together to recruit talent in the market. Why shouldn’t a large retail chain start a platform for stock fillers or cashiers together with several supermarket chains, searching for the exact same talent? Taking one agency or one commercial platform as the basis for that could solve many talent issues in those sectors. It’s a situation a candidate would thrive in. I think these are all tentative steps in the right direction.

This article is part of a three-part series written by Geert-Jan Waasdorp, the CEO and founder of Intelligence Group, the European market leader in talent intelligence. Stay tuned for parts 2 and 3 which will be published in the coming weeks.

The state of salary transparency in Europe: will 2023 finally be the year?

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Those pursuing salary transparency run the risk of sounding like a broken record. Research conducted by UK-based Reed illustrates that companies that incorporate salary details, generally generate more 27% more applications on average. Moreover, those applications were more relevant (38%) according to hiring managers, and ended up saving time throughout the recruitment process (35%).

“You wouldn’t shop in a supermarket that doesn’t list its prices, so why should we expect people to sift through job ads that don’t advertise salary?”, Simon Wingate, managing director of Reed commented. “From our research, it’s clear that jobseekers want to apply for roles at businesses that are open about what they pay. You’ll also be able to attract from a wider talent pool and avoid any negative impact to your employer brand. Businesses need to be more open to salary transparency or risk losing out on the best candidates.”

Europe falls short in salary transparency

But it’s not just about the risk of losing out to candidates — it’s about fairness, plain and simple. In a new petition, job search engine Adzuna calls upon US president Joe Biden to make it a law for salary to be included in all job postings. New York City passed a law earlier in 2022, with which employers must have to include ‘the minimum and maximum salary for any advertised job, promotion, or transfer opportunity’. Employers will also have to include the salary range in all announcements or postings.

Despite local traction, Adzuna argues it isn’t nearly enough. In its recent research, the company found that the United States ranks as one of the worst in the world for salary transparency. Out of the 19 surveyed countries, it trails only India for last place. The United Kingdom’s job market is at the other end of the spectrum, with 58.5% reportedly listing the salary alongside a vacancy. Europe generally doesn’t fare too well, however.

“Within the European Union, less than 2 of every 10 vacancy texts would list the salary.”

Not a single country within the European Union scores above 20%, meaning that less than 2 of every 10 vacancy texts would list the salary for that position. Germany (4.2%) trails the continent, while Belgium (4.5%), Poland (6.5%), Spain (7.1%), Italy (11.1%), the Netherlands (13.7%), Austria (14.4%) and France (16.7%) are all some ways short on pay transparency.

Source: Adzuna

‘For equal pay, you need transparency’

CC-BY-4.0: © European Union 2019 – Source: EP

With seemingly so much work to be done in Europe, should the European Union move in similar directions as some states in the US? In March 2021, Ursula von der Leyen, the President of the European Commission, presented a proposal that aims to ensure both women and men in the EU get equal pay for equal work. “For equal pay, you need transparency”, Von der Leyen said in a statement.

“Women must know whether their employers treat them fairly”, Von der Leyen continued. “And when this is not the case, they must have the power to fight back and get what they deserve.” Part of proposal is the notion that employers will have to provide information about the initial pay level or its range in the job vacancy notice or before the job interview. Once adopted, European Member States will have two years to transpose the directive into national law. But it should be noted that since 2021, no progress has been made.

‘Finding a new job is more stressful than getting a root canal’

Doug Monro, Co-Founder and CEO of Adzuna, paints a picture of job seekers who are fed up with the lack of transparency. “Not only is it a major waste of time, with over 50% of Americans have declined job offers after finding out the salary, wasting an average of 7 hours per inappropriate position, it causes a lot of stress”, he says. “In fact, research has found that finding a new job is considered more stressful than moving, planning a wedding, public speaking, doing taxes – and even getting a root canal.”

“We want to combat the existing gender pay gap and see salary transparency as the start of this important journey.”

“We’re campaigning to make salary transparency a federal law in the U.S. and calling on all companies to join our mission”, Monro told Newsweek. We want employees to know their worth and waste less time on applications, but we also want to bring value to employers who will be able to attract the right candidates for their open roles. Most importantly, we want to combat the existing gender pay gap and see salary transparency as the start of this important journey.”

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Why the European job board market is on the verge of a major transition

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In September and October of 2022, the most important global job board conferences took place in Amsterdam (RecBuzz) and London (Job Boards Connect). During the two events, global marketplaces that trade millions of clicks and hundreds of thousands of applications per day come together. It is a true mecca for staffing agencies which, weirdly enough aren’t the one attending.

Despite money being earned en masse due to the shortages within the labour market and the general dominance of this search and orientation channel, the European market is on the verge of a major transition.

The European and global job board market has entered its heyday. Despite money being earned en masse due to the shortages within the labour market and the general dominance of this search and orientation channel, the European market is on the verge of a major transition. The battle with Indeed in particular, and to a lesser extent with LinkedIn and Google, has been settled and more ground is being lost. Whereas Indeed was the market leader in only one European country three years ago, it is now the market leader in 6. That includes Germany, England and France. And their dominant position isn’t going to change anytime soon.

Market share/dominance by the market leader. Source: Intelligence Group

Uniform blockchain-supported CV’s

The market share of the current, traditional and profitable job board market is under pressure in many areas. The development of programmatic, cost-per-click and cost-per-applicant – see Indeed’s new strategic choice – seems to slowly become the norm. At the same time, a new phenomenon is making itself heard: ‘fake applicants and fake clicks’. Troll armies click and apply to earn extra money from the programmatic model.

Uniform blockchain-supported CV’s would be a transferable phenomenon, which can be used to apply for a job and/or enter into a contract.

A development that will eventually lead to a uniform blockchain-supported CV, which will likely be owned by the candidate/employee. And, at least as interesting, it would be a transferable phenomenon, which can be used to apply for a job and/or enter into a contract. A kind of employability passport, of which SkillsCV is a frontrunner in the Netherlands.

A new generation of ‘job boards’

And that shouldn’t or won’t be all. We’re slowly seeing an emergence of platform technology as a replacement for the existing job board technology. This technology is faster, smarter and matches better. This type of tech focuses on the wishes of the candidate, such as time, payment, duration of the assignment, and flexibility. Europe has its fair share of these types of platforms, most notably YoungOnes, jobandtalent.com and Nowjobs are marking a new generation of ‘job boards’.

YoungOnes, jobandtalent.com and Nowjobs are marking a new generation of ‘job boards’.

Related to the growth that these types of platforms are seeing, there are more companies rapidly gaining ground within the sector. There’s staffing agencies such as Randstad and Adecco, but also several specialised, data-driven and automated agencies. Then there’s educational institutions, that, based on the increasing shortage of skills, skills gaps and the gap between education and the labour market, will take control with an aim of closing the gap.

Gig workers, digital nomads and freelancers will become more important part of any labour market.

As a result, you’re going to see business models for (commercial) educators, in which candidates can grow within compounds of a company – and are taught for specific positions to create a better, more sustainable connection between education as a whole and the job as a direct result. Finally, gig workers, digital nomads and freelancers will become more important part of any labour market. Platforms that can attract these types of workers will likely leave more traditional parties scrambling to find motivated potential employees.

Who’s able to understand the candidate?

When analysing the current European job board market, not much has changed in the past 20 years. The primary focus is still on employers that sell their jobs with traditionally bad vacancy texts, incomplete information (a lack of salary and employment transparency) and an often discriminatory and non-transparent process.

Earn Hire: earn while you apply

Rather than assuming the value of a match to the tune of thousands of euro’s for intermediaries and employers – Earn Hire chooses to pay the owners of a resume when their resume is viewed.

While the labour market is scarce, the job board industry still doesn’t quite take the candidate seriously. Paradoxically, some platforms do. Take a company such as Earn Hire, which could be viewed as the onlyfans of job applicants – which may very well lead the new generation of understanding candidates. Rather than assuming the value of a match to the tune of thousands of euro’s for intermediaries and employers – Earn Hire chooses to pay the owners of a resume when their resume is viewed.

If you can add more value for the candidate, through vacancies, skills, training advice, real advisors, insurance, payment conditions, and so forth – you have entered the new generation of job boards.

That doesn’t only bring the ownership to where it belongs, firmly with candidates, but also serves as the driver behind creating value for them. And so, the candidate is taken seriously, with actual value being put on CVs. If you can then add more value for the candidate, through vacancies, skills, training advice, real advisors, insurance, payment conditions, and so forth – you have entered the new generation of job boards. A Netherlands-based start-up such as verloning.nl, which operates for gig workers, is another fantastic pioneer. Their business is built on a hassle-free experience: no administration or VAT number is required for gig workers, while taxes, benefits and income is all taken care of.

Who’ll be the new winner?

Taking everything into account, it’s very strange that a multi-billion-euro industry in Europe treats candidates so traditionally and conventionally, while candidates are the scarce commodity. Job boards are just one example of this. The real problem lies with employers, clients and agencies. It appears inevitable that a ‘gamechanger ‘ will reset that market in the coming years. The data is there, the money is there – and candidates are dying for it. Who will be the new winner?

Want to know more?

The author of this piece is Geert-Jan Waasdorp, the CEO and founder of talent intelligence data pioneers Intelligence Group. During Job Boards Connect, he presented Status and trends in the European Jobboard market: Who’s in the heart of the candidate? That presentation is downloadable here. 

 

Going, going, gone: 41% of UK workforce plans to move jobs amid economic uncertainty

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Whether we delve into American or British statistics — the outcome is largely the same. Employees everywhere have an intention to quit their job and move onto another one. Be it through COVID-19, the cost-of-living crisis or a general sentiment of the grass that’s greener — people throughout the world have a new-found intention to switch jobs. And that comes during a time wherein 51% of hiring managers reported an increase in staff quitting over the past year.

Salaries, hiring trends or skills requirements — Robert Half’s 2023 Salary Guide reports on several strategic labour market trends. The report found that 41% of the UK’s workforce plan to move jobs, while the US’ survey is showing similar results. Per Robert Half, 55% of employees said they felt underpaid despite overall salary growth in the U.S., while 48% said they would ask for a pay raise if they did not receive one by the end of 2022. Voluntary quits statistics are concerning in the US as well – with 41% of workers saying they would consider changing employers to chase a 10% pay increase.

Financial incentives are needed 

Matt Weston. Source: Robert Half

Matt Weston, Robert Half’s Senior Managing Director UK & Ireland, foresees the Great Resignation or Great Reshuffle trend continuing in 2023. “What we have seen from our 2023 Salary Guide is an increased reliance on financial incentives to attract and retain talent as the cost-of-living crisis continues to be a concern for everyone. However, throwing money at any problem is never a long-term solution, particularly as costs continue to grow for employers themselves.”

Focus on retention

Business leaders in the UK are concerned about the impact on retention, with 78% agreeing that the rising cost of living will push employees to seek higher salaries. “What is required to solve the UK’s recruitment issues in 2023 is more training and better retention of existing staff”, Weston said. “In the short term, the most effective way of bridging the skills gap is for employers to offer reskilling and upskilling programmes. In addition, the UK needs a sustainable talent pipeline driven by collaboration between industry and education, one that is highly skilled, flexible and trainable. For that, we need long-term thinking, not short-term fire-fighting ploys.”

Skills shortage will persist

As companies pivot, and more of an emphasis lies with re- and upskilling as well as retention — it comes at a time wherein a whopping 89% of business are experiencing a skills shortage. 33% of businesses are aiming to add new full-time roles in 2023, while only 2% will eliminate positions. Meanwhile, more than half (54%) of businesses say it will be harder to find the right talent over the next 12 months than it has been in the past year. “Skills shortages are causing product quality and customer service to suffer, and projects or deadlines to be pushed back”, the Robert Half UK report states.

“Businesses need to pull out all the stops or the talent shortage will impact their growth potential.”

“Most business leaders are feeling positive about the next year”, Weston said. “But high inflation is putting companies under pressure to increase compensation packages for both current and prospective employees to aid with the cost of living, as well as to retain and attract the best talent. Supply of willing workers still is not meeting demand, so businesses need to pull out all the stops or the talent shortage will impact their growth potential.”

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Indeed will trade ‘pay-per-click’ for ‘pay-per-applicant’ model in 2023

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Where there once was a time where clicks sufficed — companies with outstanding vacancies would take one or two conversions over thousands of clicks any day of the week. And in an ideal world, you’d also not prefer to pay for every placement. What you want are applicants. So why not just pay per applicant? More and more job boards are therefore switching to a so-called pay-per-applicant model. And from 2023, the biggest of them all, Indeed, will follow suit, as the company announced at the Indeed FutureWorks 2022 event.

The rollout is expected to be fully completed sometime next year.

It is widely seen as a new step beyond the traditional duration model. Employers who use Indeed will no longer pay-per-click next year, but only as soon as a candidate starts an application, or when he or she submits it. The migration has already started with smaller employers. The rollout is expected to be fully completed sometime next year.

‘A big change’

Maggie Hulce

“It’s a big change”, said Maggie Hulce, Indeed’s vice president, at the company’s conference in New York. “Indeed’s mission is to help people get jobs, and one of our values in support of our mission is pay for performance. As part of this, we are transitioning from a model of pay-per-click to pay-per-started-application and pay-per-application, both steps getting employers closer to the hire.”

Pay-per-click will be completely eliminated once the transition is complete.

According to Hulce, the new model will ultimately help employers. After all, companies no longer have to deal with unqualified, uninterested and sometimes even fraudulent clicks. And only pay for what they truly want: qualified candidates. The price will be determined by the labour market conditions for a particular position, including the location of the vacancy, the job title and the number of job seekers present in the market. If the market for that particular vacancy is less competitive at that moment in time, the cost-per-application will go down. But in scarce markets, of course, the opposite is true.

No charges when requirements aren’t met

During the event Hulce emphasised the notion that everything will be done upfront. Employers will know what applications will cost and can either choose to receive applications up to a set limit or can pause or close a job when goals are met. “As part of the experience, employers will be encouraged to set dealbreaker questions or must-have requirements”, Dulce added. “Indeed will not charge if they are not met. We are also testing the option to allow employers to reject an unqualified applicant who may have made it through the process and request a replacement. The reasons given for why the candidate was not qualified will fuel the next set of candidates to consider.”

From jobs site to hiring platform

Beyond the pricing change, Indeed is gradually becoming a hiring platform — rather than the jobs site it has always been. In other words: new features. Indeed has recently launched a slew of automation tools that allow employers to source, screen and interview candidates directly through the platform, eliminating manual administrative tasks like scanning resumes and scheduling interviews.

The Indeed FutureWorks event. Source: Indeed

“For employers, speed to connect can make all the difference when competing for talent.”

Then there’s the quick-apply button located on a job listing, which in turn has been integrated with over 300 applicant tracking systems (ATS). Job seekers can apply to jobs, take assessments, respond to outreach and even interview directly with employers. “Job-seeker feedback on our direct interview experience is consistently positive. And for employers, speed to connect can make all the difference when competing for talent”, Hulce concluded. 

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How the energy crisis is impacting Europe’s labour market: ‘It is making the market even more difficult’

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In some countries, you won’t dare to touch a radiator. The cost of living crisis has lead to approximately 8 million people in the UK who can’t pay their bills, while other countries are facing a similar fate. The energy prices have skyrocketed, in large part due to the Ukraine war, and Russia’s subsequent suspension of natural gas supplies, which covers approximately 40% of Europe’s gas consumption.

It has lead to the IMF lowering its 2023 forecast for global growth in its latest World Economic Outlook (WEO). For the eurozone, it revised its forecast for 2022 on the back of stronger-than-expected Q2 growth in southern economies, spurred by tourism as pandemic-related restrictions eased. “Winter 2022 will be challenging for Europe, but winter 2023 will likely be worse,” said the IMF. “The energy crisis, especially in Europe, is not a transitory shock. The geopolitical re-alignment of energy supplies in the wake of Russia’s war against Ukraine is broad and permanent.”

More than 10,000 temporary unemployed

With energy bills rising to unaffordable levels, the first two hundred Belgian companies have already registered for an temporary unemployment system, according to De Standaard. And more could soon follow. The Belgian scheme would allow for companies to rubber stamp that energy costs allow for more than 3 percent of the production cost of the process. Statistics from Belgian’s national employment office (NVA) show that the companies combine for temporary employment for a total of 10,684 employees. That’s a rapid rise compared to six days earlier, when the total number was only 1,175 employees spread across 44 companies. 

Statistics from Belgian’s national employment office (NVA) show that the companies combine for temporary employment for a total of 10,684 employees.

In recent weeks, several large industrial companies in Belgium have made it clear that they will either reduce or even shut down their production due to the high energy prices. These included a factory of the Norwegian chemical group Yara, of ammonia production in Antwerp and the a branch of Aperam, a producer of stainless steel. The long-erm impact on employment remained unclear, however. Only Aperam indicated that it wants to completely close its factory during the autumn holidays. This means that the nearly 1,200 employees (workers and employees) will fall back on unemployment benefits for a week.

Unemployment numbers still decreasing

Meanwhile, Eurostat estimates that 12.921 million men and women in the EU (of whom 10.966 million in the euro area) were unemployed in August 2022. Compared with July 2022, the total number of unemployed decreased by approximately 52,000 in the EU and by 30,000 in the euro area. Compared with August 2021, unemployment decreased by 1.682 million in the EU and by 1.358 million in the euro area.

Source: Eurostat

‘Impossible to find a balance’

Geert-Jan Waasdorp, labour market expert and CEO of Netherlands-based talent intelligence supplier Intelligence Group foresees labour markets not functioning properly as a long-term effect. “The market is already tight and it is impossible to find a new balance”, he says. “There is a question of moral hazard among companies and employees. It takes away entrepreneurship. Encourages abuse and prevents innovation. Saving these jobs in a labour market that’s already too tight makes the market even more difficult. And in the long run, it could see people, becoming mentally and economically, become less stable.”

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US companies dominate Europe’s most preferred employers; Amazon, Google and Microsoft lead the way

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The results come from Intelligence Group’s European labour market survey 2022. For the report, data is collected annually from different target groups within the labour market. More than 100,000 respondents from 27 European countries took part in this survey. Based on this, the report with the most preferred employers was compiled, while the report also sheds light on each country’s preferred employer.

Europe’s top 10 most preferred employers

Beyond being dominated by American companies, the European top 10 also includes German (BMW, Lidl), Swedish (IKEA) and British (NHS) employers. Interestingly, IT and Technicians are more likely to be interested in the automotive sector, partly motivated by the masculinity of the target group. In contrast, the female target group is interested in companies in retail and social organisations. This includes European supermarket chains, fashion giants and drugstores. These do tend to be of European origin. It is also notable that among theoretically educated students, there is more than average interest in large consultancy companies. The top 10 most preferred employers by theoretically educated students:

  1. Amazon
  2. Google
  3. Microsoft
  4. Apple
  5. NHS
  6. IKEA
  7. Coca Cola
  8. Lidl
  9. IBM
  10. BMW

Hardly any truly European employers

Companies such as IKEA, BMW and Lidl transcend their national popularity even though it is perfectly clear from which countries these employers originate. Consequently, there are hardly any truly European employers in Europe. A playing field that US employers are gratefully exploiting in the ‘war for talent’. “The global tightness in labour markets and especially in Europe and America makes the importance of a strong employer brand obvious. American companies have a strong advantage in the global war for talent due to their strong preference among talent. European employers need to think and act bigger to make a fist in the European and global labour market,” said Geert-Jan Waasdorp, CEO Intelligence Group.

There are hardly any truly European employers in Europe. A playing field that US employers are gratefully exploiting in the ‘war for talent’.

In today’s tight labour market, it is a mission for companies to attract and retain talent. This year, employer branding is seen even more by organizations as a top priority to simplify the search for talent. This is because good employer branding helps attract, hire and retain talent. The first steps towards making the list of preferred employers is by offering good and fair terms of employment, taking good care of their own staff, offering future prospects, development and increasing public awareness of them.

Most popular employer by country: 

Through the research, Intelligence Group is also able to pin-point which company leads the way in any given European country. Within the list, it becomes abundantly clear just why many European countries trend towards local champions – but also highlights the American dominance. Just think of Microsoft leading the way in Austria, or Google leading the way in Greece.

  • Austria: Microsoft 
  • Belgium: Google 
  • Bulgaria: Lidl
  • Croatia: DM
  • Czech Republic: Cez Group
  • Denmark: Novo Nordisk
  • Estonia: Telia
  • Finland: Nokia
  • France: EDF
  • Germany: Siemens
  • Greece: Google
  • Hungary: Mol Hungary
  • Ireland: Google
  • Italy: Amazon
  • Latvia: Latvenergo
  • Lithuania: Telia
  • Netherlands: Rijksoverheid
  • Norway: Equinor
  • Poland: Orlen
  • Portugal: Google
  • Romania: Coca Cola
  • Slovakia: Kaufland
  • Slovenia: KRKA
  • Spain: Amazon
  • Sweden: Ikea
  • Switzerland: Google
  • United Kingdom: NHS

Want to read the full report?

Would you like to receive the full report? Then download it here. Would you like more information? Contact Geert-Jan Waasdorp, CEO of talent intelligence specialists Intelligence Group via geert-jan@intelligence-group.nl.

Recruitment Leaders Network: ‘Whoever dominates the supply chain, wins the war for talent’

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‘How to think like a supply chain manager’

Wheeler’s session was interactive and included some group assignments. During his presentation, Wheeler explained how the search for talent could be seen as a supply value chain. The Recruitment Leaders also got the chance to discuss their challenges and missing elements in their talent supply chain. The key takeaway from Wheeler’s session was that whoever dominates or controls the supply chain, wins the war for talent.

“Whoever dominates or controls the supply chain, wins the war for talent.”

After Kevin, Andy Curlewis, Managing Director at Cielo presented a business case. Andy spoke about how organisations can build sustainable talent advantages in today’s digital and reputational economy. The combination of Artificial Intelligence and the Metaverse in recruitment processes were also discussed.

Raising the standards of TA

The RLN events aim to provide its members with an environment where they are free to share knowledge and best practices, learn from and inspire each other, interact and raise the standards of talent acquisition and employer branding as a whole. The next Recruitment Leaders Network Event will take place on Wednesday the 16th of November in Hoofddorp. The theme of this event will be Total Talent Acquisition. Interested in joining the Recruitment Leaders Network? Contact Marieke Wehner directly for more information via marieke@werf-en.nl

More about the RLN

The Recruitment Leaders Network (RLN) is an exclusive invite only network consisting of senior leaders active in the area of Talent Acquisition and/or Employer Branding. The RLN is created to bring together successful leaders, (senior) managers and directors who are responsible for the strategy and budget allocation for the company in these areas of expertise. Throughout the year, the RLN organises various closed meetings, each with a different theme. This session was made possible by our partner Compagnon.