2015 will be the year of the Recruiter. There are several factors that are working together to cause this perfect storm for next year and I believe that the Recruitment Industry, both on the Contract-to-Hire/Temporary labor side as well as the Direct Hire/Permanent placement side will see great growth next year.
Our firm, which specializes in both Direct Placements and Contract-to-Hire requisitions has already started to see an uptick in 4th quarter – 2014 job orders, and only see it continuing into the new year. Usually, at this time of the year, most firms are winding down and planning for next year – budgeting/forecasting for new prospects and clients. We however are still going strong, and I have to say that it is quite impressive to see that things are starting to pick up at this time of the year. There are other things that are moving into position that cause me to say that 2015 is the year of the Recruiter as well, not just my firm doing well.
First off, the economy is running back on all 8 cylinders again. The unemployment rate is steadily ticking downward and growth is back. The economy itself is still not 100% what it used to be, but we are definitely back on track. Companies are making money, interests rates are low, and QE has ended and we are off the happy pills, without missing a step. These are all good signs. The Investment community is off the sidelines and is starting to lend much more freely these days as well. All signs point to hiring!
Secondly, the ACA – aka ObamaCare is also in full swing coming 2015, this factor helps the Staffing Industry to a good extent. We are already noticing many companies under 100 employees inquiring about staffing services and how to mitigate ACA fines. This piece of the equation will have a couple of different effects within the Staffing sector. I believe as Staffing firms gain more traction and clientele, they will also become more selective in who they do business with. Before, when almost any employer could be a possible client, it will become a sense of “No Thanks”. This is due for a few different reasons. 1st – Smaller firms also do not want to break the Magic number of “50 Employees” or they themselves will come under the ACA fines. Second, due to the increase in potential business, I believe we will start seeing rates rise within the industry, supply-demand will take effect; especially with the larger firms that already have over 100 Contractors working for them at all times. I believe the days that employers can get rates in the 30’s will soon be numbered. Rates will start at 40% and work their way up from there. Permanent Hourly associates will start to be labeled Indefinite Temporary Associates as the ACA proceeds to become fully executed.
Lastly, the Recruitment Industry has been drawing a good share of attention in the last 2 years, especially in the Staffing sector. I myself have received several inquiries about acquisitions or to be acquired in the last 2 years. The Investment Community knows what is taking place and they are very interested in being a part of it. I believe as this market grows, which it is currently doing, many VCs/PEs will starting jumping in with large investments, changing the way we conduct business. Marketing and Advertising on TV, Radio, and several other faucets will begin to take hold.
To conclude, I see a rather great incentive to be in this industry today. 2015 looks to be a Boom Year for Recruiters, both Agency and Corporate. A positive outlook for business equals growth for us, and it also doesn’t hurt when you have policies that drive traffic to your service sector. Cheers Recruiters, 2015 is our year.