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One of the major industries which move in tandem with the global economic condition is recruitment industry, also known as staffing industry. Recruitment is the process of attracting, screening,......
One of the major industries which move in tandem with the global economic condition is recruitment industry, also known as staffing industry. Recruitment is the process of attracting, screening, and selecting a qualified person (from within or outside of an organization) for a job opening. The types and sources of recruitment are of 2 types viz. Internal and External recruitment.
Considering the structure of the global recruitment industry, the overall staffing market can be bifurcated in two major segments: General staffing and Professional staffing. Furthermore, the sub segments of general and professional staffing include Temporary staffing, Permanent staffing and Outsourcing. As of now, the general staffing segment which takes into account the staffing of the semi-skilled and lower wage blue collar workers overshadowed the professional staffing segment in terms of market share, which is constituted by the high skilled and higher wage professionals staffing.
At present, on account of the ameliorating economic condition all across the globe, the recruitment industry is also growing at a swift pace. In addition, a substantial share of production activities is inclining towards the developing nations/emerging countries, because of the cost benefits, the recruitment market is poised to gain momentum from the same in the near future.
Some of the major trends and developments studied include the deployment of supplier management strategies like VMS, MSP, RPO, HRO, industry consolidation through mergers and acquisitions, and the quick penetration of online recruitment sources especially in the US. Moreover, there are certain underlying growth drivers such as the improving global economic scenario and increasing employment. Since employment is closely correlated to the world GDP, augmentation in the GDP in the years to come will expedite the growth of recruitment market. But in line with these growth drivers, there also exist some challenges and issues which potentially hinder the growth of recruitment industry on regional basis. A couple of these challenges include lack of skilled workers and stringent regulatory obligations by which the staffing agencies are bound to abide.