The most important factors that directly affect the recruitment industry here in Prague (and certainly in other parts of the world) include technological and economic factors. These two factors are crucial in the industry as a whole, and they can have a severe and direct impact on it as well.
Technology plays a huge role in the recruitment industry. In today’s day and age, technology means everything, and businesses can either keep up with the times or get lost behind in the “paper” age. When it comes to recruitment, technology has many parts. Online databases, such as GBase which is Grafton Recruitment’s database, stores information about candidates, clients, and job positions. With the click of the mouse, recruitment consultants can open and view information on these components with ease. Additionally, in recent years the recruitment industry has turned to the online world to expand its business. Mobile recruiting apps and websites, as well as social media sites such as LinkedIn, are growing in popularity and many job-seekers look for jobs online. Being a recruitment agency and not having an established online presence can be detrimental for its business. Also, recruitment agencies, like Grafton Recruitment, use online sites to source for good job candidates.
Another factor that plays a large role in the recruitment industry is the economy. The economic conditions of an area directly affects the labor market, which in turn directly affects the recruitment industry. When there is a large unemployment rate, there is more human capital for recruitment industries to source from. When the unemployment rate is low, such as in the Czech Republic, outsourcing must occur. This is not the only economic effect that can occur and impact recruitment agencies. In fact, the hiring process by companies becomes slower when the economy hits a recession because their business has been affected. When this occurs, recruitment agencies face a harder time to place candidates quickly when their clients’ business are taking an economic hit.
Both the economy and technology are factors that are ever-changing. It is important for recruiters to stay up-to-date with the times and be best prepared for the future factors. Each year, many recruitment firms must be quick to adapt and take on innovative approaches to stay competitive.
One of the innovative approaches that is hitting the recruitment industry for 2017 is the introduction/use of Artificial Intelligence (AI) in recruitment. AI is now being used to screen and select candidates based on matching their CV and skills to the job position that is required. Additionally, AI is starting to be used in the assessment processes for candidates.