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.