The labor market is under high tension: there is a real 'war for talent going on. Talent is scarce and companies struggle to find skilled employees. According to Statistics Netherlands, there were 106 vacancies for every 100 unemployed in the second quarter of 2021. This is a first, as it has never happened before that the number of vacancies has exceeded the number of unemployed. According to Intelligence Group, only 11.1% of the Dutch working population is currently actively looking for other work. The unemployment rate is approaching its lowest point. In addition, the number of vacancies is expected to increase even further in 2022.
"It has never happened before that the number of vacancies exceeded the number of unemployed, since Statistics Netherlands started measuring these tensions"
The labor market is expected to become even tighter. One of the reasons for this is that the workforce is rapidly aging. According to the Netherlands Interdisciplinary Demographic Institute (NIDI), the share of retirees in the population will increase from the current 18% to 21% in 2050. At the same time, the birth rates are declining. According to the NIDI, the share of the potential labor force in the total population will decrease from 60% to 58% in 2050. So while more employees are retiring, there are fewer (young) employees to fill these positions.
Increasing demand for Recruiters
The tight labor market increases pressure on Recruitment. The vacancies for Recruiters are on the rise. An example to illustrate: there are currently more vacancies for Recruiters worldwide on LinkedIn than for Software Engineers! In June 2021, almost 7 times as many vacancies were posted for Recruiters than in June 2020. In conclusion, it can be said that the pressure to find talent is high. But organizations struggle with recruiting and selecting talent because there is insufficient Recruitment capacity available to deal with this Recruitment pressure.
Managing Recruitment Capacity
Properly managing Recruitment capacity is essential for an organization to ultimately meet internal customer demand, namely: quickly delivering a high-quality candidate at the right cost. With too little Recruitment capacity, the results drop dramatically fast. On the other hand, with too much Recruitment capacity you are at risk that your cost price per hired candidate will increase rapidly.
“Good management of Recruitment capacity is essential to ultimately meet internal customer demand”
Only a few organizations structurally engage in Recruitment capacity management in their HR department. This is also one of the reasons that the profession of “Recruitment” is often added to the HR department. As a result, this yields little or no result in this very tight labor market. It is therefore important at this time to better manage the recruitment capacity in the HR departments. This greatly improves the Recruitment KPI's of an HR department.
Recruitment capacity management has everything to do with the strongly fluctuating customer demand that Recruitment always has to deal with. How can we align the capacity of Recruitment with the volume of vacancies that arise? We think that HR departments should do a lot more with demand forecasting. By properly assessing customer demand in advance, Recruitment capacity can also be proactively managed. Moreover, Recruitment capacity can be organized flexibly through an Interim Recruitment solution.
Interim Recruitment solution
With an Interim Recruitment solution, your organization is taken care of by an interim Recruiter who knows your organization and the candidate market well. By temporarily introducing specialist knowledge into your organization, you have the space to focus on your core business and the pressure on your HR department is reduced. An Interim Recruiter will proactively coordinate the entire recruitment and selection process. Organizations can already be assisted by Interim Recruiters for as little as 4 hours a week.
Would you like more information about Recruitment capacity management and Recruitment forecasting? We are happy to think along with you about your current Recruitment issues!
Bronnen:
https://www.cbs.nl/nl-nl/visualisaties/dashboard-arbeidsmarkt/spanning-op-de-arbeidsmarkt
https://intelligence-group.nl/nl/nieuws/arbeidsmarkt-in-cijfers
https://nidi.nl/demos/demografische-toekomsten-van-nederland/
