Unpacking the REC Recruitment and Recovery Report
We all love positive news stories.
The latest report from the REC makes really positive reading. Here at TEAM HQ it has given us a sense of pride in the industry we serve and has reinforced to us just how important you guys are.
It is the independent recruiters who make up the vast majority of the recruitment sector. That’s you. That’s us as a network.
The report from the REC is full of reasons to be proud, to be positive and to know that you are important, valuable and an incredibly impactful service based industry.
We know (as you do) that the life blood of the sector is the independent, owner managed recruitment business. The big players, the corporates are the minority of the revenues. When we read the REC report we think of the hardworking, committed business owners who have a team of five. The solo recruiter who is working through the weekend to deliver a shortlist to the client that they commit to serve. We think of you.
Here are five findings from the REC report that we wanted to highlight and thank you – our Members for your contribution to making this true:
The recruitment industry supports £86 billion in gross value added across the economy.
That is the equivalent of 4.3% of GDP, around the same size as management consulting and larger than either the Accounting or Legal industries.
Just so everyone caught that – Recruitment adds more financial value to the economy than either the Accounting or Legal profession. Take a seat at the professional services table independent recruiters – you’ve earnt it.
The jobs matched by the recruitment industry support £29 billion in annual tax revenues.
That’s around the same amount the UK spends on incapacity and disability benefits, or more than twice as much as the Government’s R&D budget. £29bn in tax receipts to help the UK recover from the borrowing throughout the pandemic. Your contribution to the central purse makes you a voice to be listened to at Westminster.
Your service offering impacts on the second most important driver for success in UK business – the quality of staff.
According to businesses, the quality of their staff and recruitment is the second most important driver of their success, behind only the quality of their end product – and more important than management expertise, proprietary research or physical investment.
For individuals, there is a strong correlation between finding a good job match, job satisfaction and overall life satisfaction.
There will always be voices that complain about any (and every) product or service. Be proud of what you do. Remember this the next time you are talking to a new client about your service and associated pricing. Second most important driver to success. You are the difference who makes that happen.
19% of companies using temporary workers estimated that they would not be able to operate at all without the use of temporary workers.
That suggests that temporary recruitment agencies are directly enabling 3% of the economy, or £61 billion in GDP. Those who say things like “It’s just a temp job” miss the point entirely. Good temps drive the economy. Good temps are likely to be the driver for the 19%. Make sure your clients know that the sum of all of the good temps in the UK is creating £61bn in output.
Every year, over 300,000 people use the recruitment industry to leave unemployment for a permanent role.
That is equivalent to saving the Exchequer over £3 billion a year from reduced benefits and higher tax payments, and over twice as many as those who find a job through the Job Centre. Recruitment is a warm, empathetic life changing industry.
These are five findings of the REC. Print them. Stick them on your wall. Present them to your team and give them the reasons to be proud. Take the message to your clients, candidates and prospects. Rekindle (as if it was ever in question) your pride in our sector and say well done to yourself and your team. Without you, this would not be possible.
Put the kettle on and download the full report. It will make you smile. Share it with your customers and, no doubt, they will tell you that it is true. Their experience of working with you proves it.
TEAM is a network of contributors to the economy and the welfare of the nation. TEAM Xchange, our networking events and the access you have to an unrivalled selection of Service Providers helps you keep it that way.
From all of us at TEAM HQ – Thank you. You’re doing a great job.
