Inflation is already a headline story across the globe. The official inflation rates worldwide have been rising consistently over the last two months, causing huge concerns amongst the business community. Australia reported an official inflation rate of 5.1% for the March 2022 quarter. Similarly, inflation in Europe hit a record high at 8.1% in May 2022 and inflation in the US in April 2022 rose 8.3% from a year before. The alarming situation has led most businesses to rethink their strategy and find ways to combat the effects of inflation.
The volatile labor market, mass resignations, rampant talent shortage, and the turbulent economic environment have further worsened the situation for the recruitment industry. It is important for recruitment agencies and staffing firms to take adequate measures to protect their business in times of inflation. Here are three strategies to help your recruitment agency prepare against uncertainty, inflation, and recession.
Knowledge and planning are crucial to withstand the impact of inflation. Despite their best efforts, recruitment and staffing companies find it more challenging to stay competitive, given the increasing costs and supply-side labor shortages. Outsourcing and automation will play a key role in protecting your recruitment agency’s business through this period of inflation and recession. Combat inflation in the following three ways and prepare your business against difficult times.
Outsourcing is one of the most effective ways to mitigate the adverse effects of inflation on your business. Outsourcing helps to save costs by reducing the need to hire additional staff and is the easiest way to automate the manual process to improve efficiency. RPO service providers offer a flat rate for their recruitment outsourcing services allowing staffing agencies to manage their overhead costs. It also helps your team to save time and focus on their core business initiative and strategies.
Quality recruitment outsourcing providers can implement strategies to increase the operational efficiencies of your staffing agencies and deliver scalable workforce solutions. Smarter resourcing strategies result in cost savings and mitigate the negative impact of inflation. The key roles recruitment and staffing agencies can outsource:
Learn More: Back Office Recruitment Outsourcing
Learn More: Payroll Management Outsourcing Services
Learn more: Front-Office Recruitment Outsourcing
Businesses need to leverage technology to cut costs during the inflation period. Many recruitment agencies cannot automate their manual processes due to a lack of knowledge and expertise in recruiting technology. An outsourcing partner can help your business adopt full tech solutions to carry out business processes faster and more easily. Simple digital solutions can protect your business from inflation by reducing maintenance costs and improving employee productivity.
Robotic process automation (RPA), intelligent document processing, chatbots and other AI-based technological support drive higher productivity. Innovative business solutions in an inflation-hit market can help your company meet the challenges head-on and continue to deliver quality services in the long run.
Flexibility is the key to protecting your business during inflation. The business strategy needs to be shifted in times of inflation as the cost of doing business rises. Personnel services become more costly, overhead business costs rise, and demand fluctuates. A company that is flexible enough to adapt its business strategy to these changes and find feasible solutions can survive the difficult times. Businesses must be flexible and agile, staying open to new ways of doing things.
QX Global Group is an offshore recruitment service provider to the biggest recruitment agencies in the US and the UK. QX Global Group’s Recruitment Division offers outsourced recruiting services to agencies, transforming their process through automation and helping them build scalable solutions. A dedicated team of talent acquisition experts at QX will be at your disposal to carry out your agency’s front-office, mid-office and back-office functions, bringing in increased process efficiency and profitability.
If you want to prepare your recruitment agency against inflation and sustain your staffing business during recession, get QX Global Group’s recruitment outsourcing services and automation assistance.
We hope you enjoyed reading this blog. If you want our team to help you resolve talent gaps, reduce costs and transform your business operations, just book a call.
Originally published Sep 12, 2022 10:09:28, updated Sep 12 2022