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HHMC Recruitment Survey 2022 Spotlights Pitfalls & Potential for Growth

HHMC Recruitment Survey 2022 Highlights Pitfalls & Potential For Growth (1)

The ninth edition of the Business Intentions Survey, commissioned by HHMC Global, reports an overall rosy outlook on the horizon for the ANZ recruitment industry.

Digital investments and transformation remain firmly among the top priorities for this year and closely echo findings from the ‘21 publication which reported “surging tech investments and accelerated digitization” through Covid.

Surprisingly, though rec firms are upping the ante on tech investments, the report highlights how rec firms are not getting to grip on ROI.

If you’re not investing in tech, you’re lagging behind.

72% of staffing firms reported either recently changing their tech, or being in the middle of an upgrade:

  • 29% reported a recent change
  • 29% reported a regular review of productivity tools
  • 14% were in the process of currently changing their core technology

Rec firms are spending big on tech. But ROI is a massive black hole.

Despite all these investments, it’s alarming that relatively few are concerned about maximizing tech ROI and spending. 67% of businesses said they don’t calculate tech ROI at all.

If you’re not measuring ROI, you’re stumbling in the dark. This is the surefire path to the Frankenstack: a non-integrated, expensive mess of tools… nothing more than a ticking time bomb of privacy and compliance.

Another surprising stat from the report: 40% of rec firms reported to have either little or no integration in their tech suite.

Poorly integrated tech not only makes productivity suffer but also creates serious legal and security issues. Common problems are:

  • Lack of data integrity
  • Inability to meet compliance requirements
  • Data security risks

Consider this: back in December, a major Australia-based recruitment firm was hacked for ransom. It was a threat to the massive number of candidates inside their database, as well as a threat to the local government, a client of this firm.

A change in mindset for 2022

Turning this around will require a change in mindset. Rec firms ought to become more strategic about their tech spending and think effectively about their tech strategy.

This will keep you from falling into the trap of typical implementation & IT projects that could last multiple years, cost exorbitant amounts of money, require a massive effort to get recruiters trained up and use new tools — and ultimately, do nothing to help you win. A proper tech strategy will separate the best rec firms from the rest.

Most importantly, if you’re gunning for an exit / selling your rec firm, know this: tech ROI is a critical factor when it comes to assessing the equity and attractiveness of a sale. Just ask Rod Hore and his team of experts at HHMC.

You’ll need evidence of technology management as a corporate capability:

  • Does your rec firm have the capability to manage and implement technology projects within timeframes?
  • Does your rec firm have a robust technology environment including user adoption, proven productivity, and compliance gains?
  • Does your rec firm effectively control technology costs?

It’s not surprising that larger companies, which have more resources to support their needs, are taking the lead with tech. Enterprise firms are on the lookout for new high-tech solutions and know when their ROI justifies making a change.

What all companies can learn from this ironclad tech strategy is the importance of optimization. Every rec firm has to make the decision on how to use limited resources. Measuring ROI, ensuring full integration, and staying on top of the latest technology is what brings small and mid-sized firms to the top.

We expect the rest of 2022 to be a year of growth. With the insights shared by HHMC, all ANZ rec firms can consider how to leverage what they have and improve their tech strategy.

Download a full copy of the survey report here.