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Episode 4
379 Plays1 year ago
Episode 4
Covering all the relevant and important news from the Recruitment Industry within Australia.
Question of the Week:Does having a degree increase your likelihood of success as a recruiter?
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Transcript
Origin of Recruitment News Australia
00:00:07
Speaker
Welcome to Recruitment News Australia. Let's tell the people how recruitment news Australia came to be.
00:00:17
Speaker
Well it was an idea Ross that we came together with at the RCSA conference in Hobart last year over a coffee in one of the breakout sessions we came up with the idea of providing a central news source of information for the industry. So what we'll be doing each week is curating sources of different news from across our industry in Australia and overseas and providing all that information in one location for you on this podcast.
00:00:44
Speaker
We'll also be addressing common issues and relevant content to the industry and in our hopes creating a bit of a community and a learning platform for our listeners.
Ross Clennet's Recruitment Journey
00:00:55
Speaker
In case you don't know who we are, firstly, my name is Ross Clennet. I started my recruitment career in 1989 as a permanent accounting recruiter in London. I worked for four different agencies across a 14-year period. I started my training and coaching business in 2004.
00:01:14
Speaker
I've been publishing a weekly newsletter and blog since 2007. I've been working 26 years in the recruitment sector for a range of small private and larger publicly listed recruitment agencies. I've worked as a GM and managed recruitment businesses before starting my own company three years ago involved in creating a pathways program, including training for new recruiters coming into our industry.
Screening Concerns in Defense Recruitment
00:01:46
Speaker
The Australian Defence Force is enlisting young recruits with significant psychological issues leading to catastrophic consequences, including substance abuse and attempted suicide, a retiring veteran psychiatrist has warned. Dr Mary Frost, who is retiring from veteran-related work this year, alleges that defence selection processes do not always adequately screen out individuals with psychological vulnerabilities.
00:02:12
Speaker
According to an overview of stakeholder roundtable discussions held in late 2021 and published by the Royal Commission into Defence and Veteran Suicide, the commissioners heard concerns about screening and the financial incentives driving recruiters. Roundtable participants suggested that those incentives might lead recruiters to miss or overlook vulnerabilities in applicants, including where an applicant might underreport or not disclose past or present mental health conditions, the overview reported.
00:02:43
Speaker
Dr Frost said recruits often came to her after no more than 20 weeks of training, showing obvious signs of a traumatic background, sometimes suicidal and desperately wanting out. These are selection mistakes and these new recruits should never have been allowed in, said Dr Frost.
RCSA's New Initiatives
00:03:00
Speaker
The RCSA has launched a new website, Recruitment Careers, targeting both students, exploring agency recruitment as a post-graduation career option, and experienced workers who are considering a career change. The site's homepage reads, if you have a love of working with people, a can-do attitude and an entrepreneurial spirit, the recruitment staffing industry is looking for you.
00:03:23
Speaker
Each day you work with diverse colleagues, candidates and clients to change lives, grow businesses, shape futures and inspire others to follow their dreams. The site encourages interested visitors to leave their contact details for follow up information, sessions and other resources. The website complements the recent launch of the recruitment and talent acquisition major available for Bachelor of Business undergraduates at Deakin University.
Leadership Changes at Hayes
00:03:51
Speaker
The run of senior global executive departures at Hayes continues with the 2023 June departure of John Faraguna, president of CEO of Hayes America announced two weeks ago. Faraguna will be the fourth senior global leader to leave Hayes since September 2022. Following the departure last year of finance director Paul Venables and regional MD, UK and Ireland and EMEA Nigel Heap,
00:04:20
Speaker
together with the upcoming retirement of CEO, Alistair Cox.
Global Hiring Trends
00:04:24
Speaker
Employers worldwide anticipate a positive hiring outlook in quarter two of 2023, with 22 of the 41 countries reporting higher intentions than last quarter, according to the latest manpower group employment outlook survey of nearly 39,000 employers in 41 countries and territories. Nearly four in five or 77% of employers globally
00:04:47
Speaker
reported difficulty in finding the talent that they need, rising 2% year over year and more than double the difficulty, 38% reported in 2015. Australian employers reported a net employment outlook of 30%, the strongest net employment outlook of all countries in the Asia Pacific region. Australia's IT sector recorded the strongest hiring intention in the world. Global hiring intentions remain unchanged from the last quarter at a positive 23%
00:05:16
Speaker
while employers continue to have difficulty finding people with the right skills.
Financial Success of Recruitment Firms
00:05:20
Speaker
Michael Page's parent company, Page Group, reported global revenue increase by 19.3% in constant currency to reach just under 1.1 billion pounds for the full year ended 31 December 2022. Group gross profit was up 20.2% in constant currency, a record year for the group.
00:05:42
Speaker
Operating profit rose 16.6% to reach 196.1 million pounds and the year end consultant headcount was 9,020, a 14.2% rise over the year. London headquartered Robert Walters PLC reported global revenue of 1.1 billion pounds for the year ended 31 December 2022, an increase of 12% in constant currency when compared to the previous year.
00:06:12
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group gross profit was up 20% in constant currency. Operating profit rose 8% to just over ยฃ58 million. The Asia Pacific's region net fee income increased by 16% with Robert Walters Australia's net fee income up by 9%.
00:06:33
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The company also announced that Robert Walters, founder and chief executive, will retire as CEO after 38 years with effect from the 27th of April, 2023. Toby Falston has been promoted from CEO Robert Walters and Walters People to succeed the founder as the group's chief executive.
00:06:54
Speaker
Global search firm Corn Ferry reported fee revenue rose 4% on a constant currency basis in its fiscal third quarter ended 31 January 2023 to reach 680.8 million US dollars. Fee revenue decreased 9% in executive search and professional search. The Asia Pacific region reported the largest revenue decline dropping 28% to 22.6 million US dollars.
Job Popularity and Decline
00:07:25
Speaker
CCAP released data showing the most popular jobs over the past 25 years. Shop manager was the most popular job of 2001 and it still made it in the top five in the recent study. Some of the other roles that appeared in the list 25 years ago that are still there were nurse, sales assistant and clerk. A role that has all but disappeared is secretary or PA which has declined but also may be renamed in more recent job descriptions.
00:07:54
Speaker
A West Australian mining company is reinventing fly-in, fly-out working by building two new luxury accommodation precincts to attract female workers and prioritise health and wellbeing. Mineral Resources, also known as MINRES, is creating the hotel-style homes in the outback, which it says are triple the size of the room staff usually have. A total of 750 resort-style rooms will be built at its Onslow Iron Project in the Pilbara, with each room spanning 45 square metres.
Qantas' Hiring Plans
00:08:26
Speaker
Qantas has announced it will hire nearly 10,000 people over the next decade in a post-pandemic boom, but the union claims it won't happen unless there is an overhaul of pay and conditions. The airline said it will create 8,500 new high-skill jobs over the next decade, including pilots, engineers, cabin crew and airport staff. The breakdown of that hiring is 4,500 cabin crew, 1,600 pilots, 800 engineers and 1,600 other roles.
Impact of Degrees in Recruitment
00:08:59
Speaker
Onto question of the week this week Ross and it is, does having a degree increase your likelihood of success as a recruiter? What do you think? I think broadly yes Adele. I do think a lot of our industry is focused on white collar recruitment and you're dealing with decision makers who have at least an undergraduate degree, often postgraduate degree as well.
00:09:28
Speaker
So it's just a very helpful start that you've got that degree. It also gives you, depending if you're, for example, someone who's completed a business degree and you're recruiting in that space, it just gives you a head start in understanding the sector and knowing the jargon.
00:09:44
Speaker
Secondly, it's the associated skills that you gain from completing a degree. You learn how to research, you learn how to write, you learn how to edit, you learn how to build an argument to win a case or put forward a compelling proposition. And finally, it's the discipline through three or four or five years of study.
00:10:08
Speaker
having to stick with something demonstrates resilience and as we know in recruitment resilience is a very important competency. I'm going to disagree with you on this one Ross because there's lots of examples of successful recruiters and particularly agency owners who don't have a degree at all and they've created, run and successfully even sold their recruitment business. So a person that comes to mind is Andrew Banks
00:10:37
Speaker
And he very openly in his book and in his presentations talks about the fact that he had started a degree in the UK, left it, came out to Australia and didn't complete it and started the very successful Morgan and Banks recruitment agency. And for those of you that are too young to remember Morgan and Banks, I encourage you to look that up.
00:10:57
Speaker
But yeah, he's just one example and there are many others in the industry, a very successful recruitment agency owners who don't have a qualification. So I think that sort of statistics speaks for itself. I think the other thing is you're likely to have greater people skills or develop those people soft skills.
00:11:18
Speaker
if you've been in the workplace for longer. It's the interaction with people which helps us develop those skills and so if you've left high school and you've gone into a full-time job working 38 hours a week you're likely to have developed much stronger people skills, soft skills like negotiation and influencing skills in the workplace than somebody who's spent time in university and hasn't worked at all or has only worked part-time whilst at university. So
00:11:46
Speaker
person who has been in the workplace straight out of school and hasn't spent time at uni for the last three or four years is likely to have more of those very critical people and soft skills as I mentioned. And then the final thing I would say is to mention my own program. I would be remiss in not mentioning Korea Lassoo's recruitment program where I take people who have not worked in recruitment and I train them as recruiters and place them into our industry and
00:12:12
Speaker
there are a large portion of people I'm working with who don't have a degree and they are very successfully training as a recruiter and getting placed in jobs and starting a very successful career in the industry. So I think there's definite evidence there to show that it isn't a critical factor certainly in your success as a recruiter.
Podcast Conclusion
00:12:33
Speaker
Well let's conclude by stating the obvious Adele.
00:12:37
Speaker
that a degree or not having a degree doesn't guarantee any level of success or even guarantee the person won't be successful.
00:12:47
Speaker
What makes the difference is their competencies. Do they have the level of achievement drive or competitiveness? Do they have the required level of influencing and negotiating? They're the critical competencies that anyone is looking to hire someone should be interested in because they're the things that will create the foundation for long term success in agency recruitment. Absolutely agree. That's a wrap.
00:13:15
Speaker
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