At the end of each year, we conduct a survey to collate the thoughts and views of recruitment agency owners across the UK and Ireland, establishing their plans and forecasts for what's to come in the year ahead. From this data, we're able to paint a picture of what the future of the recruitment industry will look like.
It’s no secret that the last 24 months have been full of hurdles for recruitment agency owners around the world. As agencies continue to navigate an ever-changing landscape, business owners have had to be flexible and adopt new ways of working. When we released our last survey report in 2021, the challenges throughout the route to recovery were evident however we are delighted to say that the outlook for 2022 is much brighter, with more than 85% of agency owners adopting a positive outlook for the year ahead.
Some highlights from the survey:
- Over 85% of recruitment agency leaders are either optimistic or very optimistic about the year ahead.
- Nearly 70% of agencies have seen revenue return to pre-COVID levels.
- Recruitment agencies across all regions of the UK are expecting growth throughout 2022 with only 4% of agencies expecting sales to decrease this year.
- More than 50% of agencies will focus on nurturing passive candidates and re-engaging their existing database as candidate attraction methods throughout 2022.
It’s amazing to see confidence returning across the industry as recruitment agencies re-position and prepare for growth.
Recruitment agencies forecast strong growth in 2022
Our annual recruitment report, ‘The Future of the Recruitment Industry 2022’ shows the positive outlook for sales performance across all regions.
Last year’s data suggested that more than 50% of agencies expected their sales to decrease throughout the year as a result of a challenging landscape. Based on this year’s data, we have seen a swing of more than 90% with only 4% of recruitment agencies expecting sales to decrease in 2022.
Overall, 44% of agency owners forecast sales growth between 1–25% this year. This is a clear indication of the resilience of the industry and steadier waters ahead for recruitment agencies around the world.
Challenges recruitment agencies expect to face
As in any given year, there will be obstacles to growth. From our report, 88% of leaders have reported a shortage of candidates as being their main obstacle.
In last year’s report, we seen the market transition from candidate-short to job-short almost overnight as a result of COVID-19. We are now seeing the reverse as businesses settle into the new normal and good candidates become harder to source.
Whilst the industry has entered calmer waters and the outlook is positive, an element of uncertainty still remains around certain aspects of recruitment, as confirmed by 49% of recruitment agency owners.
To take an in-depth look at the report and ensure your recruitment agency is best positioned for growth in 2022, download your PDF copy of the recruitment report below.
As Head of Marketing, Campbell oversees all the content and online marketing here at Firefish.