Upcoming challenges for HR industry

Recruitment segment has been under pressing conditions for the past two to three years. With the increase in demand for various skill set, there has been a rising concern towards availability of skilled professionals across various segments. So while the situation grows more intense, below are the rising challenges of the recruitment industry in present and coming years.

• There is a significant lack of technical professionals across various industries worldwide. This factor has specially impacted the IT recruitment segment to a great extent. The need for project specialists and developers has seen a steady rise in the past couple of years and there is a significant deficit towards qualified professional count. The situation becomes all the more difficult as there are many technical segments which are now included across multiple business segments. So there is a rising demand for technical professionals across various industries now, beyond just IT.
• If finding the right skill is difficult matching to the client requirements is even more challenging. Around 76% of the recruiters expressed their concern regarding this matter in 2015. There has been already a declining trend towards certain skill sets. This coupled with skill mismatch is a rising concern for recruiters and this is definitely not going to be favorable for the industry in coming years.
• The contractual labour hiring rates have gone up steadily. More companies are now inclined towards hiring temporary, part time or contractual labours who can work on project basis. This has helped in bringing down the operational cost of hiring and maintaining permanent employees. But this has also propelled the rates for contractual labour costing.  Matching the demand of the clients within budget along with the demand of such professionals is becoming a tedious task for the recruiters.
• There are new reforms coming up in terms of recruitment and employment legislation across different countries in the global prospect. With the changing structure of the corporate environment, the regulations have been influenced to a great extent so as to accommodate the employee requirements. Finding talent and matching up to the legislation criteria is becoming difficult.
• Coming to the candidate side, it might be true that the unemployment rates have been on the rise as numerous professionals are graduating each year and there are many looking out for job change. But there is another side to the coin as well. The density of top notch professionals has decreased. The candidates who belong to the elite class in terms of knowledge and skill set are now very selective towards employment terms. Just a fat pay check and a higher designation is no more substantial to attract the talent pool. Other employment benefits, work culture, provisions and such like are influencing the employment considerations.

No matter how much effort goes in to finding a talent, a considerable amount of it is lost when a candidate drops out of the recruitment process because of slow hiring. Many recruiters have expressed that at least one in ten drops off the selection process due to the unnecessary delay.

Staff Augmentation And Its Benefits

Staff Augmentation refers to the outsourcing strategy related to project staffing that meets the business objectives. The approach that is usually taken up by companies in case of staff augmentation is analyzing and evaluating the existing employee base and then pointing out the additional skill set required for a particular project. While some businesses may not agree to staff augmentation approach but there are many striking benefits of this service. Many times it happens that a crucial project arrives suddenly which requires immediate involvement and the company does not have the right amount of skill set among its existing employees. It is under such situations that this service comes to the rescue. There are major benefits of this service.

• Enhancing the professional skill set with recruitment of trained professionals on a per project basis builds up the confidence of accuracy in work and deliverable. Since they are experienced, they would not require training or assistance like interns or temps. The company needs to assign the project work to a staff augmentation service provider and the professionals from the sourcing will deliver the work with perfection and quality.
• Permanent hiring is always a cost sensitive decision. In case of a project that is due to be completed within a few weeks or month, hiring a permanent employee would result in loses in the longer run. Also a company needs to provide additional benefits to a permanent employee along with monthly compensation. In case of augmented staff, one does not need to worry about such additional costs. The company pays the service provider according to the agreement and the professional is paid by the service provider itself and not the company.
• This service aids in the selection of specific skill set professionals. One does not needs to worry about a professional who has general knowledge across various technologies. The company can benefit from the experts provided by the third party who will be a specialist in a particular segment. This aids in better workflow and productivity which results in better performance.
• Bringing in a fresh professional in to the team adds a fresh perspective to the project at hand. Many times working along the similar lines, the team loses touch of creativity. With a new professional who is experienced and updated with recent trends, he or she can contribute ideas that boost up the performance and project workflow in a positive manner.
• Staff augmentation service promotes flexibility that is cost and time effective at the same instance. In case of full time employees one cannot expect that he or she will work extensive hours within a week and complete the project. This is possible with this approach. When a company goes for the service, it clearly defines the terms which needs to be followed. Hence it ensures timely delivery with quality.

Staff augmentation service is currently one of primary services provides by many recruitment consultancies. It is one of the effective measures towards implementing project wise professional help that is budget friendly in nature.