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Economic Downturn Leads To Job Insecurity


Chelsea Michaels

It looks as if theories made towards the end of 2007 have been correct, the existing state of the British economy has many members of the public feeling the financial worry. ‘The consequences of not managing your money properly can be devastating’ according to a member of the UK governing Financial Services Authority although this is evident for most of us, what has changed is the lenient nature of the credit companies and banks who would always give assistance to those in this demanding position of being behind with the bills.

The combination of increased utility bills, food and fuel payments have left the common employee less disposable wage than this time last year despite any increases in pay rates, so what should happen next? The expectation of alternative and potentially higher paid employment can be critical to the average employee, although the job market itself is also on the decline. The Chartered Institute of Personnel and Development had approximated the figure of people to lose their jobs as 150,000. John Philpott, the chief economist, stated that 08' would be ‘easily the worst since Labour came to power in the late 90's’.

This depression in employment combining with the increased need for improved wages will be impacting significantly on the recruitment market and people will need to have a modern approach to finding their ideal job or candidate. The way the general public search for their employees and employers has changed considerably over the last 15 years. More internet capable employers are used to using recruitment agencies and job seekers are using websites that are actually advertising jobs. Employees don't have the free time to fill in lots of forms and so post their Curriculum Vitae online in the hope that an employer or recruitment consultant can locate the job for them.

The usage of an agency can be quite pricey one, with a high number of recruitment agencies charging up to 10% of the applicants annual wages upon accepted placing of a applicant. If the position is is not perminant, they would be expecting notably more, it could be as much as double the wage. The employee receives only half of what the employment agency does. There are positive benefits to using a recruitment agency though, the period with the empty position is shorter which gives a smoother transition between new and old employee and lower chance of customer finding alternatives.

Due to increased inflation, businesses will feel the mounting pressure, leaving them under the increasing pressure of of escalationg utility bills. The loss of employees can cause unrest amoungst employees and this leaves companies with the sometimes long winded process of interviews and applications, but without the fiancial resources to advertise positions or pay agent fees forms, the company can suffer.

A proposal is to look thoroughly for a recruitment agency that might have expertise within your businesses area of competition. Make sure you know the fees they would be charging for a successful positioning of a candidate. Ensure your fee is not expected if the candidate should change their mind, after all they might get a better offer! The company looking for employees has the advantage of a large recruitment market though, with numerous recruitment agencies searching for you, finding one that expects less payment (percentage of salary or even a fixed price) for finding your ideal candidate would be wise.


Source: Articles Universe: http://articlesuniverse.com


Chelsea Butterworth is a freelance scribe, writing occasional pieces on fixed fee recruitment on behalf of Recruitment Revolution.

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