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Vital role for technology

COMPANIES involved in the recruitment service industry are restructuring their operations to stay ahead of the opposition in a highly competitive market, according to TMP Worldwide practice manager Scott Stacey.

Mr Stacey believes businesses involved in the recruitment industry have to re-engineer the way they do business in order to decrease the pressure on margins created by low demand in certain areas of business.

“I think that, traditionally, the recruitment industry has operated under the same business model for the past 20 years, and to remain viable in an open and competitive market, companies need to address their overall infrastructure,” he said.

“As a general industry we have to look at how we are structured, how we pay our people, top to bottom, and how effective these processes are.

“It is re-engineering what we do as an industry. Generally the industry will become more sophisticated.”

Technology has become an increasingly significant feature of the recruitment service industry’s business model. The use of the Internet enables job hunters to log on to a recruitment company’s website and register their details as well as actually applying for employment opportunities listed on the site. And the use of databases for storage of industry and job-specific employee information makes matching the right person for the right job more efficient and cost effective for the recruitment company.

Choiceone general manager Scott Van Heurck said the easy-to-use technology-based registration procedures for job seekers and recruitment companies was one of the main reasons that Internet and email registrations had increased.

“We see about 75 per cent of resumes on email now and this is increasing all the time,” he said. “And it increases the ease of putting it (job seeker information) into your database, and being able to run far better searches for skills, and matching them to job requirements.”

Mr Van Heurck said the competitive nature of the industry, and the need for prompt expedition of matters when businesses were looking for employees, had contributed to the technology-based business model becoming commonplace within the industry.

“You still have to be very quick in this industry and to get someone interviewed and a resume on a client’s desk as quickly as possible to get that placement done,” he said.

“Emails have just been fantastic.”

The use of Internet and email registration technology enables WA based recruitment companies to expand their services into the global employment market.

Mr Stacey told Business News of a recent experience where he was required to fill a position in West Africa. He was able to conduct his business using the Internet, and was able to fill the position with a candidate from South Africa. The whole procedure was concluded offshore and this, he believes, highlights some of the benefits that the increasing use of technology can bring to the industry.

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