After a recruitment boom at the beginning of this year, UK recruitment agents and companies have successfully placed a significant number of people into jobs. It would be easy to assume that recruiters are in for a long and easy ride, but is it time to consider the consequence of their success?

The success

Last year’s ‘Golden Age’ of recruitment saw an increase in staff turnover of some 9.7%. That translated into a £31.5 billion recruitment industry with over 600,000 permanent placements. As a consequence, the recruitment industry received some well-deserved praise and recognition for its efforts.

The BBC reported that the UK unemployment rate has fallen to an incredible seven-year low of 5.4%, the lowest figure since 2008. The number of people in work has risen to 140,000, with over 73% of the population now in employment. This is the highest rate of employment since 1971.

The consequences of success

However, with a reduced number of 1.77 million people without work, the pool of candidates has fallen. With a more stable employment market, recruiters may have to focus more on the millennials, those born between 1980 and 2000, to plug this gap.

Job-hopping has been a hot topic over the last year and experts agree that millennials are the most active in moving swiftly from one opportunity to the next. With this generation remaining more easily tempted by shiny new job offers, surely recruiters have little to worry about?

Staying put

They do. Recent studies have shown that even the job-hopping millennials are staying put. The Washington Post recently reported that the millennials are staying in their posts the longest since 1983, resulting in a lack of movement and churn in the market:

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So why are people staying in a post for longer?

Cluttered CV

It is argued that having too many positions on your CV is detrimental when looking for a new job. Potential employers may interpret this as a sign of unreliability and being non-committal with your career. Broadly speaking, most organisations want people to stay for a good term of service so that their investment in the individual can be rewarded with greater productivity over time.

Reap the benefits of long service

Gone are the days of a golden watch after 30 years of service, but longevity does bring its benefits. Staying with a company for a long term of service is less likely to be perceived as a dangerous decision these days. We live in an interconnected, communication-rich world. Technology constantly changes the way we do business and companies actively on-board new solutions so employees often develop new skills within their existing roles.

It’s not all just for the love though; many companies still offer extra perks for long service such as additional holiday entitlement or increased pension contributions. So, if you like your company and its culture and there are added perks along the way, why would you leave?

Lack of opportunity

For those looking to change, it’s unfortunate that some markets show signs of weaker job production. Depending upon skills and experience, this can lead to more people of equal capability competing for the same vacancy and this can encourage downward pressure on wages because employers face less competition to secure new employees. Without the promise of a bigger salary, more people could choose to stay where they are.

Tougher times ahead

So how will recruiters shore up the gaps? They have successfully contributed to an employment boom, but they may have to work that little bit harder in future. Whilst they are waiting for traditional job-hoppers to begin hopping again, tapping into a more passive workforce may be fundamental to maintaining a bright recruitment future.