Over the last few years the recruitment sector has seen significant changes, and now many agencies are suffering due to a number of different factors.
Unpredictability has always been a problem for recruitment companies. Now the uncertainty of Brexit, followed by multiple business closures in the retail and restaurant sectors is causing many recruitment companies to develop cash flow problems.
Other factors that are affecting the recruitment sector include:
Some clients are using deliberate slow payment tactics and, as a result, many recruitment companies invoices are going unpaid. A lot of agencies simply don’t have the internal resources to properly chase late payments.
Online recruitment providers are on the rise and they often have much lower costs in terms of staffing and buildings expenses. As a result, traditional recruitment agencies simply cannot compete with the tough competition, leading to cash flow problems when they try.