Half of recruiters (50%) intend to invest significantly in digital skills the next 12 months to bolster their workforce and stem the threat of Artificial Intelligence (AI). This comes as more than two-fifths of recruitment firms (46%) believe AI will replace people and/or reduce headcount – the second highest of any sector.
While there is a clear focus on improving skills, according to a survey as part of Ambition 2025, less emphasis is being placed by recruiters on other people priorities. Surprisingly, only 15% of recruitment leaders see more flexible working options as a priority, compared to 33% overall. Improving pay and reward is also a lower priority than average (19% compared to 29% overall).
The findings are part of a new report commissioned by law firm, Pannone Corporate. Through a combination of research and in-depth interviews, Ambition 2025 aims to understand the key drivers of growth, as well as the motivations, priorities and challenges facing companies, including those in recruitment.
Paul Jonson, senior partner at Pannone Corporate, commented: “People are central to recruitment in every respect. As such, it comes as little surprise that investing in developing key skills ranks so highly when it comes to driving growth ambitions. With Artificial Intelligence (AI) becoming ever-present, the need to adapt and strengthen you’re the role of your people has never been more important – a fact not lost on a significant number of recruiters who recognise the risks and rewards AI brings.”
He added: “Our aim with Ambition 2025 is to listen to the voices of the people behind those companies, and understand what their growth ambitions are for the next 12 months. It’s given us an interesting insight into their growth journeys to date and what the entrepreneurial landscape will look like in 2025 across the recruitment piste.”
A survey of 200 businesses with a turnover of between £20 million and £300 million – carried out in conjunction with the report alongside of series of interviews about what aspirations businesses have for the future – also found that unlike many other sectors, recruitment firms are more likely to turn to traditional bank loans to fund growth ambitions. Nearly a third of recruiters (30%) said they’d consider a bank loan as a funding option, compared to 19% overall.
