- 01 Apr
Temporary Staff Hire Replacing Permanent Recruitment?
Often our prospects will remain connected with us for a long period of time, before they go ahead and take out a facility. We take the opportunity to regularly "touch base" with a wide range of businesses, in order to help where we can, and to stay abreast of market developments.
Each month we deliver our FundingVoice magazine to all of our subscribers, which includes a lot of prospective customers that we have spoken to in the past.
That ongoing connection yielded an interesting conversation with one of these prospects recently.
Temporary Staff Labour Hire Versus Permanent Recruitment
They are in the recruitment sector and we'd spoken to them previously about providing funding against permanent recruitment.
Not all invoice finance companies will deal with permanent recruitment businesses, but there are some that will. However, at the time the customer was being paid fairly promptly by his debtors, so he didn't really need the funding.
Perms Versus NHS Temps
More recently, the company in question have been looking at an opportunity for the provision of temporary labour hire to the NHS, prior to the recent outbreak. They wanted funding against these invoices for temps, but following the recent coronavirus outbreak, this work has become even more important to them.
They have lost a volume of turnover relating to their permanent recruitment work, as a result of the virus, and they are concerned about where the future of that market will lie - certainly in the short term. Therefore, they are re-focusing their business on the provision of temporary labour staff hire to the NHS.
Refocusing UK Recruiters
It raises the question as to the extent to which we are going to see a similar shift, generally, across the UK affecting recruiters.
Many people have of course been laid off due to the virus outbreak, and the following period of lockdown. The degree to which this uncertainty impacts future decision-making regarding recruitment, remains to be seen. However, it would be reasonable to assume that some business leaders will be thinking about utilising temporary labour, rather than taking people on permanently.
This is just one example of the type of refocusing of activity that UK businesses will need to undergo in order to survive this crisis. If you are considering similar action, we would be keen to hear from you, and to assist you in any way we can.