Search our Article Directory:

Home | Business | Small Business


Economic Downturn Leads To Job Insecurity

By: Chelsea Michaels

It seems as if forecasts made towards the end of 2007 have been correct, the recent state of the British economy has many citizens feeling the financial strain. ‘The consequences of not handling your money properly can be devastating’ according to Chris Pond of the Financial Services Authority although this is not news for most of us, what has changed is the pardoning nature of the finance companies and banks who would always lend a hand to those in this relentless position of being behind with the bills.

The amalgamation of increased utility bills, food and fuel payments have left the common employee less disposable wage than this time last year despite any increases in income, so what can people do? The prospect of different higher paid employment becomes vital to the average employee, although the recruitment market itself is also becoming more concentrated. The Chartered Institute of Personnel and Development had estimated the total number of people to lose their jobs as 150,000. John Philpott, the chief economist, stated that this year would be ‘easily the worst since the Labour Government came to power in 1997’.

This decline in employment together with the increased need for improved wages will be enhancing pressure on the recruitment market and people will need to have a modern attitude to finding their ideal job or candidate. The way people seek out their employees and employers has changed significantly over the last decade. More internet savvy employers are accustomed to using recruitment agencies and potential employees are using websites that are advertising jobs. Employees don’t have the time to fill in many forms and so submit their CV on the internet in the hope that a prospective employer or agent can find the job for them, and quickly.

The utilization of an agency could be quite a costly one, with most recruitment agencies expecting up to 20% of the applicants annual salary upon successful placing of a applicant. If the position is is temporary, they would be expecting considerably more, it might even double the wage. The temp picks up only half of what the recruitment agency does. There are definite advantages to using a recruitment agency though, the time to fill the vacant position is less which gives a smoother transition between new and old employee and lower chance of customer dissatisfaction.

Due to mounting inflation, the smaller businesses will feel the pressure, leaving them under the increasing pressure of of mounting utility bills. The loss of acceptable working conditions can cause bad feelings amoungst employees and this leaves supervisors with the time consuming process of interviews and applications, but without the fiancial resources to advertise positions or pay agent fees forms, the business can suffer.

A recommendation is to search carefully for a recruitment agency that might be specifically within your businesses area of competition. Negotiate the the fees they would be expecting for a successful placement of a candidate. Guarentee your fee is not expected if the candidate should seek other employment, after all they might get a better offer! The same is true for the employer though, with many recruitment agencies out there, finding one that offers the lowest rate (percentage of salary or even a fixed price) for locating your ideal employee would be wise.

Article Source: http://www.articlekingpro.com

Chelsea Butterworth is a part-time columnist, writing intermittent pieces on fixed fee recruitment for Recruitment Revolution.

Please Rate this Article

 

Not yet Rated

Click the XML Icon Above to Receive Small Business Articles Via RSS!
Additional Articles From - Home | Business | Small Business
Sign Up for a free Article King Pro account or learn more.
Submit Articles
Member Login
Top Authors
Most Popular Articles
Submission Guidelines
Ezine Notifications
Article RSS Feeds
About Us
Link to Us
Contact Us
Copyright & DMCA
Privacy Policy
Terms of Service


Most Recent Articles

Powered by Article Dashboard