Recruitment strategies are pivotal for companies looking to stay competitive. Here’s a distilled perspective on when to consider external recruitment solutions, including recruitment agencies, in-house recruiting, and freelance recruiters.

Key Reasons to Engage External Recruiters

• Efficiency and Cost-Effectiveness: Engaging third-party recruiters is worthwhile if it saves time or money, particularly when it allows your team to focus on other core functions.
• Expertise in High-Demand or Narrow-Niche Areas: If your sector faces stiff competition, bolstering your team with professionals through specialised recruiters can give you an edge. Recruiters often have the niche expertise required to find candidates for complex technical roles or specialised industries, such as cybersecurity or artificial intelligence.
• Local Market Penetration: Local recruiters excel in navigating the nuances of their labour markets, providing an invaluable resource for geographical expansion. For example, to enter the UK market, you will most likely reach out to recruitment companies in London.
• Risk Mitigation: Choosing the right recruitment partner helps avoid costly hiring mistakes that can impact finances and reputation.
• Recruitment Strategy Development: External recruiters can help in strategizing hiring, optimizing recruitment processes, enhancing employer branding, and improving candidate experience.
  The best recruiting companies don’t merely collect data for their immediate needs; they also provide their clients with essential information, such as HR consulting or conducting comprehensive salary surveys for those seeking deeper insights into the talent market.
• Training Internal Teams: External experts can be instrumental in upskilling your recruitment team, introducing them to advanced selection techniques and best practices.

Here’s a concise comparison between internal and external recruitment:

Maximising Efficiency with In-House Recruitment Approaches

In-house recruitment teams offer an in-depth knowledge of the company’s culture and specific hiring needs, ensuring candidates align with organisational values. They oversee the entire recruitment journey, from crafting the job description to making the final hiring decision, fostering long-term relationships with candidates and reinforcing the employer brand.

However, they may face limitations in reach, especially for niche roles, and struggle with workload fluctuations, potentially leading to bias and a lack of industry best practices.

Advantages of In-House Recruitment:

• Greater immediate management of the recruitment process and oversight of the candidate experience
• Deep alignment with company culture and values
• Cost-effectiveness under high-load monthly hiring scenarios and in long-term talent management

Challenges:

• Limited access to a broader talent pool
• Labor-intensive processes and the risk of internal bias
• Skillset limitations for narrow-niche or ‘hard-to-fill’ roles
• Fluctuating workloads may require additional staffing or outsourcing

Tip for Enhancing Your In-House Recruitment Team’s Efficiency

To harness the full potential of in-house teams, invest in continuous training and development to keep pace with industry trends. Leverage internal referral programs and advanced recruitment technologies to enhance efficiency.

Optimising Talent Acquisition Through Recruitment Agency Partnerships

Advantages of Recruitment Agencies:

• Agencies bring broad industry knowledge and networks, niche agencies excel in their speciality areas (e.g., IT recruitment agency, sales staffing agency, marketing staffing agency, HR recruitment agencies, etc.).
• Agencies expedite the recruitment process, with some reportedly filling positions 2-3 times faster than freelancers or in-house efforts.
• Ideal for assembling entire teams or handling diverse role requirements.
• Access to extensive candidate pools, advanced screening processes, premium sourcing tools, and continuous staff training often leads to placements of superior quality.
• They offer scalability and have the infrastructure for large-scale recruitment drives.
• Best hiring agencies and IT Recruitment Entrepreneurs ensure continuity; the process doesn’t halt due to individual availability.
• Formalized reporting and contractual relationships provide a professional framework.
• Offering guarantees reduces hiring risks.

Challenges with Agencies:

• Potential dilution of employer brand control.
• Risk of insufficient alignment with company culture and values.
• Selection risks without first-hand industry reputation or reviews.
• In some instances, service costs may be higher compared to other methods. However, from a broader perspective, it remains cost-effective (refer to the calculations section below).

📝 It is worth noting that most concerns regarding recruitment agencies carry traces of stereotypes, and potential challenges can be addressed with a short single call, during which the vacancy and its key questions are thoroughly discussed.

Recruitment Agency Compensation Models:

• Recruitment agencies generally offer 3 primary fee structures: flat fees for specific services, retainers for ongoing recruitment support, and contingency fees based on successful placements. The latter, a pay-for-results model, is the most popular and excellent for clients’ risk management, as it helps to mitigate uncertainty regarding candidate quality.
• The percentage charged by agencies for the pay-for-results model typically falls within the range of 15% to 25% of the hired candidate’s annual salary, escalating to as much as 30-50% for difficult-to-fill roles, such as executive searches and C-level positions.
• While costs may seem to be higher, the efficiency and expertise they bring, especially for high-level placements, can justify the expense.

Busting the Myth: When In-House Recruiting May Not Save Costs

Regular hiring may favour in-house teams, yet irregular hiring demands a closer look at costs. Consider the average 2024 recruiter salaries in the US ranging from $3,900 to $4,900 monthly, and in the UK from $2,400 to $3,900, excluding bonuses.

Imagine four in-house recruiters spend three months failing to fill a C-Level role, incurring $28,800 to $58,800 in salaries alone, plus bonuses and tool costs, e.g., LinkedIn licences up to $10,000.

• Minimum: 4 * $2,400 * 3 = $28,800
• Maximum: 4 * $4,900 * 3 = $58,800

Now, considering the average salary for a Senior Executive (C-Suite, VP, etc.) from the StackOverflow report is $10,400 per month / $124,700 per year, an agency’s commission of, let’s say, 18% amounts to $22,400, not accounting for the economic impact of having the role filled sooner.

For less senior roles, like a Rust professional at $7,250 monthly / $87,000 per year, staffing agency fees amounts to $15,660—still less than just the salary costs of an in-house team.

This suggests for non-regular, specialized hiring, agencies might offer a more cost-effective solution than a full-time in-house recruitment team.

Considering this, it’s important to note that the economic impact of having a role filled more quickly by an agency is a crucial factor.

Strategic and Tactical Engagement with Freelance Recruitment Specialists

Freelance recruiters, a significant category within the recruitment industry, operate independently and stand apart from recruitment agencies. This is particularly evident in the U.S., where around 35% of professionals, or 57 million individuals, work as freelancers, showcasing the scale of freelance activity.

Advantages of Freelance Recruiters

• Expertise and Flexibility: The ideal freelancer combines deep immersion in a company’s culture and processes with the agility and specialised knowledge of agencies. While such exceptional freelancers are rare, their value cannot be overstated.
• Cost-Effectiveness: Freelancers often offer more competitive pricing and flexibility than agencies, though top freelancers may command similar fees.
• Adaptable Engagement: Companies can work with freelancers on a full-time, part-time, or project basis, tailoring the engagement to specific needs.
• Outcome-Oriented: Freelancers typically earn based on successful placements or project completion.
• Experience: Unlike new hires, seasoned freelance recruiters bring valuable insights and practices to a company.

Challenges with Freelance Recruiters

• Knowledge and background issues: Questions about education quality and professionalism in recruitment often arise due to the lack of a universal certification system worldwide. Many freelancers gain skills through self-education, which may not always be comprehensive, potentially leaving gaps. In contrast, companies, agencies and IT Recruitment Entrepreneurs typically conduct professional assessments when hiring.
• Reliability and Human Factor: The risks of unreliable work, missed deadlines, or unavailability highlight the human element’s unpredictability. While freelancers can offer personalised, niche expertise, their individual capacity is naturally limited. The challenge of managing a high volume of candidates for a single vacancy often requires broader team support.
• Process Integrity: Even among skilled freelancers, a cohesive workflow can sometimes be lacking.
• Cultural and Legal Nuances: Freelancers’ varying levels of immersion in the recruitment market and legal requirements can pose challenges, especially in regions without a strong culture of responsible freelance practice.

Observations from Business Practice

Feedback from certain companies expresses concerns about freelancers, including a high rate of rejections, quality of candidate pools, and delayed delivery times.

Tip On Working with Freelance Recruiters: Best Practices

• Vet Carefully: Ensure recruiters have a solid track record and positive references.
• Define Scope and Communication: Establish clear protocols, expectations, and performance indicators.
• Embrace Specialisation: Consider freelancers for specialised or niche roles rather than general recruitment.

All in all, freelance recruiters represent a flexible, cost-effective option for businesses, especially for specialised roles. However, the success of such engagements relies on clear definitions of scope, diligent vetting, and open communication. As the recruitment landscape continues to diversify, understanding the strengths and limitations of freelance recruiters is crucial for companies trying to solve the complexities of modern talent acquisition.

Deciding on the Right Recruitment Approach: Insights and Strategy

Choosing the right recruitment manager—be it external or internal—requires a nuanced knowing your organisation’s needs. Although agency services might appear costlier, engaging with recruitment agencies for targeted, project-based collaborations can prove more efficient and cost-effective than the continuous expenses associated with an in-house recruitment team’s salaries.

In certain scenarios, the assistance of a freelance recruiter might suffice. However, for complex roles, particularly in the tech industry or for Senior/Lead/Architect positions, careful consideration is crucial. The adage “buy cheap, pay twice” rings true here: a poor choice in contractors can result in not just financial loss but also time—a critical setback in today’s fast-paced business environment—potentially damaging your reputation.

Ultimately, the decision to work with an agency or a freelancer should be made on a case-by-case basis, considering:

• Your company’s established processes.
• The niche specificity and complexity of the role to be filled.
• The urgency of the hiring need.
• Potential risks.
• Associated costs.
• Guarantees needed / offered.

A Hybrid Approach to Recruitment

Businesses can benefit from leveraging both external recruitment options in a hybrid model, using it as an A/B test to discern what works best, or incorporating both on a permanent basis. If a company has an internal recruitment department, it too can draw on these external channels as needed.

Conclusion: Making the Informed Choice

Ultimately, choosing the best recruitment method hinges on your specific needs. Good staffing agencies and IT Recruitment Entrepreneurs often provide a cost-effective solution for occasional staffing needs, while an in-house recruiter might be preferable for continuous recruitment demands. The focus—whether on speed or finding long-term fits—can also guide your choice. Understanding these nuances ensures a more effective recruitment process, regardless of the approach chosen.

Regular evaluation and adjustment of your recruitment strategy, based on performance, cost-efficiency, and evolving business needs, are essential. Whether in-house, freelance, or via an agency, the optimal recruitment method is one that aligns with your organisation’s unique demands, resources, and culture, often making a blended approach the most strategic solution.

But ultimately, it’s important to choose a truly professional recruiter. We’ll discuss this in a separate article.

The post Choosing Your Hiring Path: Recruitment Agencies, In-House, or Freelancers appeared first on Recruitment Agencies.

High-Level Overview: General Recruitment and HR Statistics for 2024

• Talent Shortages: Companies and IT Recruitment Entrepreneurs are facing unprecedented hiring challenges, with 75% experiencing difficulties in recruitment, as reported by Talent Board.
• Job Openings: As of early November 2023, the labor market saw 8.7 million job vacancies, indicating a robust talent demand (BLS, 2023).
• Employee Burnout: A concerning 40%+ of employees express experiencing exhaustion from overwork, highlighting a growing issue in workplace wellbeing (CNBC, 2023).
• Workplace Adaptability: A notable 79% of the workforce now ranks the option for flexible working arrangements as a top priority in their job criteria (Forbes, 2023).
• Emphasis on Mental Well-being: A significant 62% of job applicants are giving considerable importance to the availability of mental health support in their potential job roles (Forbes, 2023).
• Hiring Timeframe: Employers, on average, spend approximately 44 days to successfully recruit for a vacant position (SHRM, 2023).
• Demographics of the Labor Force: The median age of employees is currently 42 years, with expectations of an upward trend as more individuals continue their professional endeavors later in life (BoL Statistics).
• Passive versus Proactive Candidates: Around 70% of the global labor market is identified as passive candidates, while the rest, about 30%, are actively seeking new employment opportunities.
• Dominance of Millennials: By the year 2025, it’s anticipated that millennials will represent 75% of the worldwide labor market.

Let’s explore these topics in greater detail. The particular statistics presented here can also be seen in various subsections below, offering a more in-depth data stats and ensuring a more holistic presentation.

Consolidated Recruitment Statistics for 2024

• Recruitment as Marketing: A significant shift in recruitment is underway, with 86% of HR managers viewing it as increasingly akin to marketing. This tendency highlights the necessity for businesses to stand out in order to lure the best professionals. (Source: Glassdoor)
• Work as Purpose: Approximately 70% of the workforce considers their job as a central component of their life’s purpose. This trend underscores the duty of organizational heads to assist staff in discovering and fulfilling their sense of purpose. (Source: McKinsey & Company)
• LinkedIn’s Preeminence: As of 2023, LinkedIn remains the leading network for recruiting for professional positions. (Source: Forbes)
• Evaluations and Assessments of Companies: A significant 86% of potential employees investigate reviews and ratings of firms prior to submitting job applications, underscoring the critical role of a company’s brand reputation. (Source: Glassdoor)
• Investment in Recruitment Tech: An impressive 97% of businesses intend to boost their funding in recruitment tech solutions  in 2023, with 47% focusing on AI. (Source: Zippia). See more details below.
• AI in Recruitment: 67% of HR professionals see AI as beneficial for recruitment, though 35% express concerns about potentially overlooking unique talents. (Source: Tidio). See more details below.
• Generational Values: A significant 67% of Generation Z job seekers give preference to employers whose corporate principles align with their personal beliefs. (Source: CareerPlug)
• Mobile Job Applications: Mobile devices account for over 70% of job application submissions. (Source: CareerPlug)
• Skills-Based Hiring: A notable 76% of businesses focus on skill-based hiring, frequently utilizing software to pinpoint applicants with the required capabilities. (Source: Apollo)
• Online Job Platforms: About 60% of job applications are received via online job portals, with social media platforms contributing 56% and referrals accounting for 50%.
• UK Candidate Choices: In the UK, key considerations for job candidates include salary (74%), the flexibility of hybrid work arrangements (68%), and opportunities for personal growth (66%). (Source: FireFish Software)
• Hiring Timeline: The average duration for hiring processes now stands at 41 days, marking a small rise from past figures. (Source: LinkedIn)

Statistics Focused on Job Seekers

• Engaging Non-Active Candidates: A staggering 92% are open to joining a reputable company, showcasing the impact of a strong company image. (Recruittee)
• Importance of Organizational Culture: A significant 35% will turn down job offers if the organization’s culture clashes with their personal values. (Robert Half International)
• Millennial Workforce Trends: One in four millennials frequently switch jobs.
• Top Factor for Job Attraction in the UK: For 66% of UK professionals, salary and benefits are the key reasons for accepting a job offer. (Workable)

Trends in the Employment Landscape

• A Candidate-Led Job Market: 62% of employees and 86% of employers view today’s job market as candidate-dominated, influenced by the increase in remote working opportunities. (PWC)
• Applying to Jobs Online: Job hunters often apply to various jobs online each day, pointing to the necessity for streamlined recruitment methods. (Finances Online)
• Power of Employee Referrals: Candidates have 18 times higher chances of getting hired through referrals, showing the strength of referral schemes. (CareerPlug)
• Discovering Jobs via Social Media: Almost 40% find job opportunities through social networks, utilizing their extensive network. (Statista)
• Job Searching on Mobile: 89% rely on mobile devices for their job hunt, with nearly half doing so every day. (Statista)
• Mobile Job Applications: Mobile devices account for 16% of job application submissions.
• Time to Replace Employees: On average, it takes 41 days to fill a vacant position, highlighting the critical role of retaining employees. (Recruit CRM)

Tech Recruitment Trends Heading into 2024

• Tech Employment Trends: Despite notable layoffs in the technology industry, the gap between supply and demand for digital skills remains mostly stable. As of March 2023, the unemployment rate in the tech sector stood at a mere 2.2%, well below the national average of 3.5%.
• Growth in Tech Job Openings: A significant uptick in tech vacancies was observed, with around 77,000 new roles emerging month-over-month. This increase signifies the most substantial hiring activity in seven months, with about 316,000 tech positions unfilled in various industries.
• US Software Developer Landscape: The United States is home to nearly 4.5 million software developers. Yet, the low IT talent unemployment rate of 1.4% makes it challenging to fill these positions.
• Varied Demand in Tech Roles: The need for specific tech positions shows considerable variation. For instance, data engineers witnessed a 45% rise in demand, whereas the demand for AR/VR engineers soared by an astonishing 1,400%.
• US Tech Salary Insights: The average annual tech salary in the US is $152k, marking a slight decrease of 1.1% from the previous year. In contrast, remote tech salaries have grown by 4.6%, averaging $143k. On a global scale, tech salaries have seen an average increase of 6.2%, reaching $138k annually.
• US Tech Professionals’ Views on Salary Increases: An overwhelming 74% of tech workers in the US are considering switching jobs if they don’t receive anticipated salary hikes within the next six months.
• UK Tech Industry’s Market Value: Demonstrating resilience, the UK tech sector achieved a market valuation of $1 trillion in 2022. Employing over 3 million individuals, the UK remains a key player in tech innovation and expansion.
• UK Versus European Tech Markets: The market value of the UK tech sector considerably outstrips that of its European counterparts, being more than twice the value of Germany’s and triple that of France’s.

Enhancing Employee Integration with Key Onboarding Insights

Onboarding plays a pivotal role in an employee’s journey, directly influencing their motivation, productivity, and commitment to the organization. Below is a restructured summary of pivotal statistics for refining onboarding approaches:

• Formal Onboarding Initiatives: Adoption of structured onboarding can yield a 50% increase in employee loyalty and a notable 62% rise in work efficiency. (Harvard Business Review)
• Onboarding and Employee Retention: A solid onboarding experience can make 69% of staff members more likely to remain with a company for at least three years. (Clickboarding)
• Welcoming Gifts’ Effect: 91% of staff feel more welcomed when they receive company swag. (InfoQ)
• Buddy Systems’ Influence: Microsoft reports a 23% higher satisfaction rate in onboarding experiences when new hires are paired with buddies. (Microsoft)
• Onboarding Duration: Generally lasting around three months, some onboarding processes extend up to a year.
• Enhancing Retention: Effective onboarding can increase new hire retention by 82%.
• Introduction to Organizational Culture: Effective cultural integration during onboarding can lead to over 70% productivity increase. (Recruit)
• Costs of Inadequate Onboarding: 88% of companies face higher turnover due to poorly managed onboarding processes. (Thrive My Way)
• Onboarding’s Financial Advantage: Proper onboarding saves an average of $2,629 per employee compared to recruitment costs. (Zety)
• Revenue Growth: 78% of businesses with robust onboarding report an annual revenue boost. (Zippia)
• Consequences of Poor Onboarding: 44% of new hires leave within the first six months due to inadequate onboarding. (Shortlister)
• Paperwork Emphasis: 58% of organizations prioritize paperwork during onboarding. (Statista)
• Communication’s Role: Proper pre-onboarding communication can improve the experience by 83%. (Statista)
• Onboarding Satisfaction: Merely 12% of new recruits are impressed with their employer’s onboarding process. (Shortlister)
• Onboarding Evaluation: 55% of companies don’t assess their onboarding, missing enhancement opportunities. (Zippia)
• Onboarding’s Decision Influence: 93% of employers believe onboarding aids new hires in job commitment decisions. (Zety)
• Delay in Responding: 40% of new employees report slow replies to job-related inquiries. (Thrive My Way)
• HR Professionals’ Concerns: A third have doubts about the adequacy of their onboarding practices. (LinkedIn)
• Impact on Long-Term Tenure: Good onboarding makes employees 58% more likely to stay for over three years. (Apollo)
• Referral Rate by Employees: 20% of new hires recommend their employers to friends and family. (NorthOne)
• Remote Job Acceptance: 77% of workers accept positions without visiting the office.
• Referral-Based Hiring Efficiency: Employee referrals lead to 40% of successful hires, despite being only 7% of applications.
• Paperwork-Centric Onboarding: 58% of companies still primarily focus on paperwork.
• Post-Onboarding Confidence: Less than 30% of new hires feel fully prepared for their roles.
• Job Seekers Silence: About 28% end communication with potential employers or IT Recruitment Entrepreneurs abruptly during hiring.
• Preference for Mentoring: 57% of new employees favour having a buddy or mentor.
• Training-Enhanced Retention: Organizations offering formal onboarding training see 50% better retention rates.
• Automated Onboarding Benefits: Automation in onboarding tasks leads to a 16% increase in new employee retention.
• Job Hunt Post-Recruitment: 74% of new hires search for other jobs within their first six months of employment.

Workforce Engagement and Retention Data

• Employment Longevity Trends: In 2022, there were 46.6 million job resignations in the U.S., a slight decrease from 47 million in the previous year, according to Statista.
• Job Tenure Insights: As reported by the BLS, the average employment duration in 2022 was 4.1 years, with public sector roles seeing the highest stability at 6.8 years.
• Job Search Activity: Gallup reveals that over half (51%) of the current workforce is either actively seeking new positions or keeping an eye out for opportunities.
• Reasons for Job Change: CareerPlug indicates that a primary motivator for employees contemplating a job switch is the absence of career advancement options, closely followed by the pursuit of improved work-life balance.
• Organizational Focus: In 2023, 20% of companies have identified staff retention as their foremost objective, outpacing both recruitment (14%) and cultivating company culture (12%), as per HRReporter.
• Burnout and Retention: 95% of HR managers identify burnout as a critical factor affecting employee retention. (Forbes)
• Flexibility Preferences: 46% of Baby Boomers value flexible work hours for витривалий commitment, compared to lower percentages in Generation X people, Millennials, and Generation Z. (Paychex)
• “Recognition and Career Departures: A significant 58% of workers cited a lack of recognition as their reason for leaving their positions. (People Managing People)
• Organizational Culture and Job Transition: One-fourth of the workforce in the U.S. has moved to different jobs due to subpar organizational culture, with over 65% open to job change if the workplace environment deteriorates.
• Productivity Linked to Workplace Atmosphere: Employee contentment with organizational culture boosts productivity by nearly 12%.
• Transparency and Confidence Deficit: The absence of these factors raises the probability of employees quitting by 26%.
• Workplace Inflexibility and Employee Stress: A staggering 86% of workers globally recognize that inflexible work environments contribute significantly to stress.
• Employee Engagement versus Pay: Committed employees would need a 31% salary hike to entertain the idea of switching jobs, in contrast to the 22% expected by less engaged staff. (Gallup)
• Earning Enhancement Plans: A remarkable 73% of employees are contemplating extra work to augment their earnings. (Monster)
• Choosing Jobs for Benefits: An overwhelming 69% of workers lean towards positions offering superior benefits. (Aqord Wellness)
• Prioritizing Job Satisfaction over Pay Rises: More than half (51%) rank job satisfaction higher than a pay raise. (Monster)
• Flexibility in Work as a Key to Keeping Top Employees: For 53% of managers, offering flexible working arrangements is essential for retaining high-caliber employees. (Monster)
• Shift to Freelancing: A projected 73% of the workforce is expected to shift towards freelancing in 2023. (Fiverr)

Workforce Engagement Overview

• Economic Impact Worldwide: The global economy suffers a loss of $8.8 trillion each year due to diminished employee engagement, representing 9% of the worldwide GDP. (Gallup)
• Key HR Focus: Organizational restructuring and managing change are the primary objectives for 53% of HR executives in 2024. (Gartner HR)
• Leadership Influence: A significant 70% of workers feel that their team leader’s effectiveness enhances work engagement. (Gallup)
• Engagement Rates: Among all employees, both full and part-time, only 32% are actively engaged in their roles, while 17% show signs of disengagement. (Gallup)
• Work-Related Stress: Nearly half (45%) of the workforce experiences emotional exhaustion from their jobs. (SHRM)
• Purpose Achievement: Compared to other staff members, executives are eightfold more likely to achieve a sense of purpose in their professional roles. (McKinsey & Company)
• The Trend of Quiet Quitting: The phenomenon of ‘quiet quitting’, which is closely linked to disengagement, predominantly impacts workers born post-1989. (CareerPlug)
• Hiring Tactics: 74% of HR departments in various companies implement a structured interview approach.

Recognition at Work: In America, one out of every three professionals receives recognition for their contributions. (TeamStage)

Workplace Fulfillment Insights

• Job Engagement and Culture: A significant 74% of employees in the U.S. regard workplace culture as the key driver of job fulfillment. (ApolloTechnical)
• Passion at Work: A mere 20% of the workforce genuinely harbors enthusiasm for their roles. (Zappia)
• Milestone Recognition: A notable 64% of staff members feel recognizing significant life events and achievements boosts job contentment. (Globoforce)
• Critical Job Satisfaction Elements: The primary contributors to job satisfaction are meaningful work and substantial earnings. (Zappia)

Professional Growth and Development Trends

• Peer Coaching Impact: Engaging in colleague mentorship results in a 65% increase in job satisfaction and a 67% greater chance of becoming a high performer. (Glassdoor)
• Training, Belonging, and Retention: Employees are 73% more likely to experience a sense of belonging with integrated training and coaching, and 50% more inclined to remain in their position for over five years when learning and development are emphasized.
• Millennials’ Focus on Career Advancement: A staggering 87% of millennials emphasize the importance of opportunities for professional growth in their employment choices. (Glassdoor)
• Assessing L&D Efficacy: Around 44% of workers use qualitative feedback methods to evaluate their organization’s learning and development effectiveness. (Glassdoor)

Statistics on Employee Performance Management

• A survey of senior HR executives reveals that 75% believe future high-performing work environments will be characterized by enhanced collaboration, ongoing dialogue, and a culture of mentorship. (Cision, 2020)
• Shift in Performance Evaluation: There’s a notable shift in 22% of companies, prioritizing employee behaviour over results in performance evaluations. (HRD)
• Immediate Feedback vs. Traditional Reviews: A significant 80% of workers show a preference for instant feedback, moving away from conventional performance evaluations. (EmploySure)
• Prioritizing Productivity: In 2022, nearly half (48%) of organizations emphasized productivity and engagement, surpassing the focus on employee development (31%). (ClearReview)
• Growing Skills Gap in IT: According to 34% of IT Recruitment Entrepreneurs, the gap in worker skills is widening. (Monster)

Statistics on Employee Acknowledgment

• Preferred Forms of Acknowledgment: The most impactful forms of employee recognition are public accolades and opportunities for promotions or additional responsibilities.
• Home-based Work and Recognition: While working remotely, 64% of employees feel that acknowledgment is more crucial. (Human Resource Executive)
• Recognition’s Impact on Performance: About 37% of workers indicate that personal acknowledgment would inspire them to perform better. (Fortune)
• Boosting Engagement: Acknowledging minor accomplishments in the workplace can lead to an 83% surge in employee engagement. (OCTanner)
• Attracting Talent with Career Development: Career advancement opportunities are a key factor for 37% of employees when considering a new job. (Workable)

Workplace Diversity and Inclusion: Essential Insights

• By 2044, it’s anticipated that minority groups will form the majority population in the U.S., according to the U.S. Census Bureau.
• Generation Z, with 48% coming from diverse ethnic backgrounds, mostly identify as non-white minorities, as reported by Forbes in 2022.
• Reports from Gallup in 2021 highlight that one out of four Black, Hispanic, or Latinx professionals face discrimination at work.
• Implementing blind application processes can boost the hiring rates of women from 25% to 46%, research from Harvard University shows.
• A staggering 90% of top Fortune 500 firms are utilizing employee resource groups to enhance their DEI (Diversity, Equity, and Inclusion) efforts (Forbes, 2023).
• Talent.com (2022) reveals that 58% of those who have encountered salary discrimination are women.
• Due to perceived gender bias, women are often hesitant to negotiate salaries, fearing negative labels such as greediness or lack of team spirit.
• A significant 57% of American professionals advocate for active company engagement in diversity and inclusion.
• Companies embracing diversity are 33% more likely to see higher profitability compared to their less diverse counterparts.
• The gender pay disparity in the U.S. hovers around 17%.
• Racial diversity within companies can lead to a performance edge of up to 35% over less diverse organizations.
• Brands that demonstrate greater diversity are 70% more likely to enter new markets successfully.
• More than half (57%) of employees believe their companies should invest more in diversifying their workforce.
• For 2023, 35% of HR managers are making diversity and inclusion a top priority in their recruitment objectives.
• Blind recruitment strategies have been proven to increase the hiring rate for women by 46%.
• Discussions around diversity on platforms like LinkedIn boost women’s application rates by 26%.

Employee Mental Health: Critical Statistics for 2024

• A global survey by Gallup indicates that 44% of workers experienced high stress.
• Gartner’s research shows 45% of employees are weary of continuous organizational changes, with only 38% adapting their work behaviors, a significant drop from 74% in 2016.
• The rise in employee burnout is attributed to high stress, extended working hours, and limited time off, adversely impacting companies and their staff.
• The American Psychological Association states that 59% of employees suffer from work-related stress, leading to diminished interest, reduced work effort, cognitive weariness, emotional exhaustion, and physical fatigue, which has seen a 38% rise since 2019.
• Forbes reports that middle managers experience the highest burnout rate at 43%.
• CNBC highlights that 75% of managers believe more employer guidance could aid in stress management and work prioritization.
• Forbes also notes a 32% higher burnout rate among female workers compared to males.
• Mental health and well-being are a top priority for 68% of leaders in 2023, as per Forbes.
• Headspace, a meditation app, witnessed a surge of over 500% in corporate interest, reports MITSloan.
• MITSloan’s study reveals that companies implementing five wellness initiatives observed a 79% boost in employee loyalty.
• BenefitsCanada points out that 33% of workers regard workplace flexibility as the most vital employer support for mental health.

Hybrid and Remote Work Dynamics

• Enhancing Work Efficiency: A significant 75% of managers find remote work boosts productivity, and over half (62.5%) agree it increases employee motivation.
• Balancing Office and Remote Work: A fifth of workers prefer a mix of remote and office work, favoring 2-3 days at the office each week.
• Challenges in Remote Participation: Nearly half (43%) of remote workers find it challenging to feel included in virtual meetings.
• Impact on Organizational Culture: Flexibility in scheduling positively influences productivity, team bonding, and the overall workplace culture.
• Shrinking Physical Workspaces: Almost half (46%) of employers report a reduction in office space, with 59% considering a further cut by half.
• Strong Preference for Remote Options: An overwhelming 86% of professionals prefer remote work to some extent.
• Virtual Interviews Becoming Normative: About 61% of IT Recruitment Entrepreneurs foresee virtual interviews as a standard practice.
• Positive Experiences with Remote Work: A high majority (83%) of businesses report favorable outcomes with remote work arrangements.
• Remote Work Productivity: More than 95% of professionals maintain or improve productivity in remote settings, with 51% reporting a boost in output.
• Hybrid Work Model On the Rise: Approximately 70% of companies are gearing up to adopt a hybrid work model, redesigning workspaces for this purpose.

HR Technology Insights

• Productivity Boost via Recruitment Software: 70% of business leaders recognize recruitment software as a productivity enhancer, saving time and costs while efficiently sourcing talent.
• HR Tech Budgets Steady in 2024: Despite economic uncertainties, 89% of HR leaders plan to maintain or increase their HR tech budgets in 2024.
• Emergence of AI in HR: A notable uptick in AI usage within HR tech is anticipated, rising from 17% to about 30%.
• AI-Driven Cost Efficiency in Hiring: Implementing AI in hiring processes leads to a 20% cost reduction.

5 Important Points on Plans and Forecasts for 2024

• Skills Transformation on the Horizon: 44% of worker skills are projected to evolve in the next half-decade.
• Frontier Technology Driving Change: Over 85% of organizations cite frontier technology adoption as a key change driver.
• Maintaining Remote Work Flexibility: 80% of Fortune 500 CHROs plan to preserve remote work flexibility.
• Trend Towards Diverse Career Paths: 56% of job seekers are venturing into roles outside their expertise areas.
• Strong DEI Commitment in Organizations: A vast majority (93%) of companies have leadership support for DEI initiatives.

Conclusion

As we consolidate the insights from recent HR statistics, it’s evident that the future of HR is pivoting towards embracing technological advancements and nurturing a diverse and inclusive workplace culture. The shift towards remote work flexibility and the exploration of non-linear career paths by employees are shaping a new paradigm in workforce management.

Looking ahead, HR professionals should gear up to navigate these evolving trends. Our upcoming publications, along with insights from our partners, will delve deeper into these changes, offering strategic guidance for 2024. Stay tuned to equip yourself with the knowledge and tools necessary to prioritize effectively and lead your organization through the dynamic landscape of HR.

The post 2024 HR and Recruitment Data Insights: Statistics Driving Future Success appeared first on Recruitment Agencies.

Confronting Present-Day Recruitment Challenges (2023-2025)

In the fluctuating markets of 2022-2023, companies face unprecedented challenges influenced by unpredictable ‘black swan’ events and market cycle phases. Our conversations with partner agencies indicate a global shift towards a state of ‘permacrisis’ — a constant crisis mode characterized by frequent ups and downs. This demands heightened adaptability in both personal and business realms, a view echoed by IT Recruitment Entrepreneurs.

Adapting to Remote Work and Global Talent Pool Engagement

Initially a response to COVID-19 in 2020, the increasing popularity of remote work has transformed recruitment dynamics, enabling companies to hire globally. This shift requires adaptable recruitment strategies, as a significant majority (98%) of workers now prefer at least partial remote work. The emerging interest in a four-day work week further underscores this trend. However, many companies find their workflows unprepared for these evolving demands, such as freelance or part-time arrangements.

Economic and Geopolitical Uncertainties: Hiring Freeze and Budget Cuts

The ongoing war and looming economic recessions, especially the anticipated crisis in America likened to the Great Depression of the 1930s, have created uncertainties impacting hiring budgets. Alcor notes that while an actual recession in America hasn’t started, the market reacts preemptively with budget freezes and cautious hiring, a trend observed globally. Europe, influenced by layoffs in American companies, has also seen a slowdown in hiring.

The Impact of Mass Layoffs and Investment Crisis

Mass layoffs have spared no category, affecting even top-tier AI engineers. This wave, coupled with a funding crisis, hinders startups from securing necessary financing. The resulting lower valuations and reduced funding directly impact companies’ ability to invest in their teams and product development.

Navigating Mobility in an Unpredictable Job Market

Providing career mobility in this uncertain job market is a key challenge for HR professionals. With employees increasingly exploring internal mobility or gig work, developing innovative career progression strategies is vital for attracting and retaining top talent.

LinkedIn’s Global Talent Trends report underscores this, highlighting that two-fifths of UK employers struggle with hard-to-fill vacancies as of August 2023, according to the CIPD Labour Market Outlook.

Fundamental Persistent Recruitment Challenges

Challenge: Strategic Vision and Inefficiency in Recruitment

Many recruiters face the challenge of developing a strategic vision for their recruitment process. This issue is compounded by the low barrier to entry in the profession, where even university students can fill positions through networking more effectively than seasoned recruiters in certain industries.

Solution:

• Implement a quality control system for the skills and experience of your recruiters
• Adopt the SMART Framework: Set specific, measurable, achievable, relevant, and time-bound goals to guide your recruitment strategy.
• Centralize HR Documents: Use a document management system for improved organization and accessibility of candidate records and communication.
• Invest in an Applicant Tracking System (ATS): This tool helps coordinate recruitment activities and enables data-driven decision-making.

Challenge: Collaboration and Communication in Recruitment

Recruiters often struggle to involve hiring managers effectively. Gallup’s survey revealed 51% of hiring managers are disengaged, and 14% actively disengaged. Also, administrative tasks like scheduling interviews can detract from more strategic recruitment activities.

Solution:

• Enhance Collaboration: Ensure every team member is involved in the hiring process. Utilize ATS for sharing evaluations and comments.
• Continuous Monitoring: Regularly evaluate recruitment strategies and adjust based on performance metrics and feedback.
• Diversify Recruitment Services: Explore different avenues like employee leasing or recruitment process outsourcing (RPO).

Challenge: Attracting the Right Candidates (The Perfect Match) and Engaging Qualified Candidates

The competitive market, especially for candidates with specific technical skills, increases the difficulty of attracting the right talent. CIPD Labour Market Outlook August 2023 found that 40% of UK employers made counteroffers in the past 12 months.

Besides, recruiters often face the challenge of not only finding but also engaging the right talent in a market where candidates have multiple options.

Solution:

• Focused Talent Pooling: Concentrate on a smaller, more qualified group of candidates.
• Clear Job Descriptions: Avoid jargon and gender bias. Use application forms with ‘knock-out’ questions to screen candidates effectively.
• Leverage Social Media: Engage with your community and use direct messaging to reach out to potential candidates. Keep messages personalized and concise. Engage with both active and passive candidates, using platforms like LinkedIn to reach a broader audience.
• Personalized Communication: Use direct messaging and innovative communication like short videos.
• Innovative Candidate Engagement: Use short videos to enhance candidate engagement during the hiring process.

Challenge: Building Long-Term Relationships with Your Top Candidates

Building meaningful relationships with candidates, especially those who are passive, is a critical challenge. LinkedIn reports that 49% of passive talent are open to hearing about new opportunities. However, good candidates often receive numerous recruitment messages, making it difficult for your outreach to stand out. The competition is even fiercer for executive and senior-level roles, where candidates aren’t actively job searching.

Solution:

• Balancing efficiency with personalization in recruitment is crucial. Quality over quantity in candidate selection and transparent communication can significantly improve recruitment outcomes. By adopting these solutions, IT Recruitment Entrepreneurs can effectively navigate the challenges of a competitive job market, securing the right talent for their organizations.
• Foster Trust: Engage in meaningful conversations that go beyond job specifications.
• Provide Transparency: Clearly communicate company culture, expectations, and growth opportunities.
• Maintain Consistent Communication: Regularly check in with candidates, even when there are no immediate openings.
• Leverage Technology: Use tools like CRM systems to track interactions and preferences.
• Offer Value: Share industry insights and professional development opportunities.
• Seek Feedback: Regularly ask for and act on feedback to improve the candidate experience.
• Recognize Milestones: Acknowledge significant events in candidates’ professional lives.
• Create a Candidate Community: Invite top candidates to exclusive events or online forums.
• Show Appreciation: Express gratitude for their interest and time, regardless of the hiring outcome.

Challenge: Tech Skills Gap and Changing Requirements

The rapid evolution of technology results in constantly changing skill requirements, making recruitment challenging. The National Federation of Independent Business reported that 87% of HR professionals face a lack of talent in the market.

A 2022 study by ECI Partners revealed that the primary hurdle in hiring was the scarcity of technical skills and knowledge.

Solution:

• Build a Talent Pool Management Frameworks: Create pipelines of pre-screened candidates for future positions. Engage past and passive candidates, ensuring compliance with data protection laws like GDPR.
• Train Hiring Teams: Focus on online education and retraining to adapt to market changes and enhance hiring skills.

Challenge: Candidate Assessments and Skills Mismatch

Assessing candidates’ skills and dealing with a skills gap are significant challenges. A 2022 study by ECI Partners highlighted the lack of technical skills as a major hiring obstacle.

Solution:

• Take-Home Assignments: Respect candidates’ time and ensure relevance to the job. Provide clear instructions and post-assignment feedback.
• Skill Development Opportunities: Offer training programs, like coding boot camps, to bridge the skills gap.
• Focus on Upskilling: Encourage candidates to acquire new skills, enhancing flexibility and inclusivity in your hiring process.

Challenge: Talent Shortage

In the competitive landscape of IT recruitment, companies often struggle with a talent shortage, especially in roles requiring specific technical or software skills. The CIPD Labour Market Outlook (August 2023) shows that 40% of UK employers made counteroffers in the past year to retain talent.

Solution:

• Refine Job Ads: Create clear, engaging, and bias-free job descriptions.
• Streamline Application Process: Include specific ‘knock-out’ questions to quickly identify the most suitable candidates.
• Make your processes efficient so that you can combat counteroffers quickly and confidently.

Challenge: Assessing Candidate Fit and Efficient Candidate Screening

Assessing a candidate’s suitability for a role is crucial, but can be time-consuming and challenging.

Solution:

• Relevant Practical Assignments: Use job-relevant, time-efficient take-home tasks to gauge skills.
• Structured Testing: Provide clear instructions and expectations for any assessments.
•  Implement skill-specific screening to advance only the most suitable candidates.

Challenge: Meeting Compensation Expectations

Candidates often have high expectations regarding compensation, making negotiations complex.

Solution:

• Transparent Salary Ranges: Be clear about compensation limits.
• Emphasize Non-Monetary Benefits: Highlight flexible work arrangements, professional development opportunities, etc.

Challenge: Hiring Fast, Reducing Time-to-Hire

The hiring process often stretches out, frustrating both applicants and IT Recruitment Entrepreneurs. The TotalJobs Hiring Trends Index Q2 2023 indicates an average hiring duration of nearly six weeks. This delay can be costly and inefficient. A study by Robert Half shows that 57% of applicants lose interest if the process is protracted. On top of this, nearly half of businesses don’t respond to candidates within four weeks of receiving applications.

Solution:

• Streamline Hiring Stages: Reassess your recruitment process. Eliminate unnecessary stages and ensure all steps are essential and efficient.
• Improve Communication: Keep candidates informed and engaged. Aim to respond promptly, ideally within a week of receiving their application.
• Optimize Reference Checks: Use tools like Crosschq to expedite reference checking. This saves time without compromising the quality of your vetting process.
• Implement Service Level Agreements (SLAs): Establish and adhere to SLAs for timely feedback, such as within 24 hours of an interview.
• Utilize ATS Metrics: Analyze recruitment metrics from your Applicant Tracking System to identify bottlenecks and areas for improvement.
• Set Realistic Expectations: For complex roles, communicate the expected timeline upfront with hiring teams, emphasizing the need for thoroughness.

Challenge: Difficulty in Collecting and Processing Accurate Data

Solution:

• Utilize systems like an ATS, Google Analytics, or recruitment marketing software for data storage and report generation.
• Select key recruiting metrics in consultation with senior management.
• Regularly validate and cleanse data to ensure AI-driven decisions are fair and effective.

Challenge: Integrating Technology in Recruitment

Solution:

• Assess current infrastructure for compatibility with new AI solutions.
• Foster collaboration between IT and HR departments for smooth integration.
• Address team resistance by emphasizing the importance of new solutions.
• Invest in an ATS to centralize candidate data and facilitate team collaboration.
• Automate routine tasks, but maintain oversight to prevent machine errors and loss of top candidates.
• Maintain Human Touch in a Technology-Driven Recruitment Process:
  • Regularly review and control recruitment processes to prevent reliance solely on automated tools, avoiding the loss of excellent candidates due to machine errors or misconfigurations.
  • Incorporate human elements throughout the recruitment journey to ensure candidates feel personally engaged and valued.
  • Use video assessments to add a personal touch, especially in remote recruitment scenarios, to foster a more humanized experience for candidates.

Challenge: Lack of Value Proposition and Building a Strong Employer Brand and Reputation

A Corporate Responsibility Magazine survey highlights a stark reality: 75% of people would refuse a job from a company with a bad reputation, even if unemployed. A robust employer brand isn’t just a nice-to-have; it’s essential in attracting quality hires. It’s a multifaceted process involving positive candidate experiences and promoting your culture, often requiring a collective effort beyond typical duties. The Unstop Campus Employer Branding Report 2023 underscores this, showing a majority of students in various fields prefer minimal interactions with a company before deciding on their future employer.

Solution:

• Align your recruitment marketing with your employer brand. Showcase what makes your company exceptional – culture, work environment, balance, values, and career opportunities.
• Utilize various platforms, from job listings to social media, to communicate your brand.
• Encourage and share employee testimonials.
• Actively respond to online reviews and empower employees to share their stories.
• Be a genuinely good employer; authenticity shines through.
• Align candidates’ career aspirations with long-term opportunities in your company.
• Offer clear career progression paths and invest in employee development programs.
• Implement referral programs, which have been shown to increase employee tenure and profits.
• Offer a mix of incentives, from financial bonuses to non-monetary rewards like extra time off or company swag.

Ensuring a Good Candidate Experience and Improving the Application Process

A candidate’s experience during recruitment is vital not only for employer branding but also influences their decision to accept job offers from IT Recruitment Entrepreneurs’s side. Poor experiences can deter candidates, while positive ones can boost your employer brand and acceptance rates.

Complicated or lengthy application processes can create negative first impressions, leading to lower application completion rates.

Solution:

• Communicate clearly and set expectations about response times.
• Use an Applicant Tracking System (ATS) for timely follow-ups.
• Provide comprehensive information for interviews, including contacts and necessary documents.
• Streamline the application process with a user-friendly ATS, enabling LinkedIn applications, and avoiding redundant information requests.
• Offer candidates options for interview formats (in-person, Zoom, phone, or pre-recorded).
• Request feedback post-application.
• Regularly compare the visit-to-application ratio to gauge process effectiveness. The average rate across industries is around 3%.
• Optimize the application process to be engaging and straightforward.
• Train staff regularly for interviewing roles, including mandatory interview training.
• Equip interviewers with detailed information about roles and candidates.
• Implement a robust employee onboarding process for better long-term retention.

Challenge: Candidate Ghosting and Uncertain Behavior

Recent studies, including Gartner’s global Voice of the Candidate Survey from May 2023, reveal alarming trends in candidate behavior. Almost half of those accepting job offers remain open to other opportunities, and a significant number back out even after accepting an offer. Furthermore, Zippia’s study shows that 60% of candidates abandon job applications midway. This trend, where candidates suddenly become unresponsive, poses a significant challenge for recruiters, akin to being left in limbo during a conversation.

Solution:

• IT Recruitment Entrepreneurs should focus on creating a robust follow-up strategy to keep candidates engaged throughout the hiring process.
• Enhance candidate engagement: Foster a more interactive and engaging recruitment process.
• Address mismatches: Ensure alignment between the candidate’s expectations and the company’s culture, values, and niche.
• Improve candidate experience: Streamline the application process and maintain clear, consistent communication.

Challenge: Avoiding Bias and Discrimination

Unconscious biases in recruitment can lead to missed opportunities with potential candidates. Biases, often subtle and unintentional, can creep into decisions, fostering stereotypes and hindering diversity. For instance, recruiters might make assumptions based on a candidate’s gender or educational background, which are irrelevant to their job performance.

Solution:

• Conduct unconscious bias training for all hiring personnel.
• Utilize interview panels to balance perspectives.
• Implement a standard set of job-focused interview questions.
• Incorporate skill tests in the application process.
• Use structured interviews and ‘blind’ hiring software to maintain objectivity.
• AI in recruitment, while beneficial, can inherit biases from its training data, leading to unintentional discrimination. Regularly auditing AI algorithms, diversifying training data, and involving a diverse group in AI system design are crucial steps to ensure fair and unbiased AI-driven recruitment processes.

Challenge: International Expansion may look tricky

Expanding internationally brings unique challenges, like grasping local culture and specifics.

Solution:

• Stay aware of your actions and goals.
• Thoroughly research local markets.
• Hire professional local representatives for invaluable insights.

Challenge: Meeting Compliance and Regulation Norms

Navigating varying labor laws and data protection rules is complex for global organizations.

Solution:

• Form a compliance team or seek legal expertise.
• Regularly update your privacy policies to align with regulations like GDPR.

Challenge: Expensive Recruitment vs. Low Budgets

In a looming recession, recruiters often face tight budgets, making it tough to attract top talent.

Solution:

• Emphasize non-monetary benefits to candidates, such as growth opportunities and a dynamic work environment.
• Use pre-employment screening software to streamline hiring and reduce costs.
• Opt for cost-effective online tests and one-way video interviews.
• Choose platforms like TestGorilla, offering plans for all business sizes, including free options.

Challenge: Working with a Multigenerational Workforce

Navigating a workforce that spans generations, from Gen Z to baby boomers, presents unique challenges. Recruiters must balance differing values, preferences, and expectations, while still focusing on technical skills.

Solution:

• Prioritize understanding individual motivations and align them with the company’s culture and the specific role.
• Implement personalized communication strategies.
• Offer tailored benefits packages and professional development opportunities for each generation.
• Embrace an inclusive approach that acknowledges and respects the perspectives of each age group.

Conclusion

While the recruitment landscape continually evolves, certain fundamental challenges persist. Addressing these effectively requires a combination of insight, adaptability, and innovative strategies.

Incorporating these (and many others) solutions can effectively address recruitment challenges, leading to a more efficient and successful hiring process. Remember, recruitment is an evolving field – staying adaptable and informed is key. For more insights, join the IT Recruitment Entrepreneurs and take part in pioneering these approaches.

The post Recruitment in 2024-2025: Addressing Today’s Challenges with a Mix of Innovative and Proven Strategies appeared first on Recruitment Agencies.

Table of contents

• Intro
• 4Team
• A-HR
• Alcor
• Capital Recruiters
• Data Science UA
• Don’t Panic Recruitment
• Hirey Design Recruiters
• Indigo Tech Recruiters
• intropia
• ITExpert
• MoreThan
• OnHires
• Reteam and BazaIT
• ReTech
• Skillers
• Talando
• TalentIn
• Values Value and InGame Job
• VeryBusy Recruiting
• VP Team
• Conclusion

Intro

The war has not only altered the lives of every Ukrainian but also threatened the existence of many businesses, particularly within the recruiting sector. Gone are the heady days of 2021 when candidates and contracts flowed like a golden river for many recruiting firms; today, we face a reality where only the strongest and most prepared survive.

To gauge the state of the market and its key players, the Talando team conducted in-depth interviews with 19 of the most renowned recruiting companies—those that have been in the market for over three years and whose owners we know personally. These are companies founded by Ukrainians and employing Ukrainians. The consolidation of their experience, strategies, and tactics for survival and growth forms the foundation of this report.

Some actively advance in their domains, while others expand their markets and geographic reach. Certain companies are restructuring their teams to ensure no one is left jobless, searching for various options to keep the company afloat. Unfortunately, some have had to close their doors.

This material will pull back the curtain on the partner search process, often conducted without fanfare or additional attention, yet vital in shaping the backbone of Ukraine’s IT companies and beyond.

Ultimately, this research and article aim to acquaint candidates and clients with the recruiting business’s inner workings and connect agency teams to develop a robust hiring ecosystem.

Each company’s story is a tapestry of personal fates, sad tales, and motivational stories about team struggle and achievement. One could craft an individual article from these discussions with the listed companies. However, within the confines of this overview, we’ll limit ourselves to select facts, quotes, and ideas that have helped—and we believe will continue to help—in the development of Ukrainian recruiting and the industries it serves by finding the best specialists.

Now, we give the floor to companies themselves and their representatives.

4Team

Zhanna Kapitsa, Founder & CEO of 4TEAM recruiting agency, Co-founder and former CEO of the Transcarpathian IT Cluster, Director of the ITCT Foundation charity

At 4TEAM, we boast a formidable team with over 15 years of experience. We are adept at securing C-level, top, middle, and niche specialists in IT, fintech, defense-tech, military-tech, digital, crypto, and tech companies. Finding talent for IT firms outside the military-tech and defense-tech sectors has always been a relative breeze for us. However, since the onset of the full-scale war, we’ve faced new challenges, industries, and niches. Initially, there were difficulties, but the evolving market and its challenges demand quick adaptation. In time, we’ve succeeded in understanding where to find the necessary experts and swiftly assist our clients with their requests. There’s also been an uptick in demand for top talent in the agricultural and manufacturing sectors.

I believe in the limitless potential of individuals, especially when they’re in their element, pursuing what drives them. This belief is the cornerstone of 4TEAM’s philosophy.

On February 24th, amid the horror, I felt a distinct professional pain—years spent battling to keep talents in Ukraine, working and living well, only to see them forced to leave their ravaged homes and country by the thousands. This situation spurred an even greater fury, transforming into an intensified determination to work harder.

Like everyone in “our bubble,” we extensively volunteer and support people and projects that bring us closer to our Victory.

We now plan to expand our team to achieve more and excel further.

How we’ve survived, what we did, and what we do now

Overall, the Ukrainian job market stalled in spring 2022, but at 4TEAM, we continued to receive steady requests, possibly because our clientele is split between Ukrainian and Western companies. Fortunately, our team was already accustomed to remote work due to COVID-19, enabling us to adapt relatively quickly to the new realities. We constantly communicated with our international clients about the possibility of continuing work and delivering expected results. There were days when our recruiters conducted interviews from bomb shelters—each job opportunity offered to a Ukrainian was a motivation and gave us strength. We made our first job offer a week after the full-scale invasion began.

Now is the time to unite and collaborate—with colleagues, competitors, and authorities—to endure and enhance resilience, bringing Victory closer. The skill to swiftly assemble professional teams proved invaluable, especially during the crisis at the start of the war when we found ourselves in Western Ukraine.

In early April 2022, an IT cluster was established under my leadership in Transcarpathia. It united and supported over 100 residents, including large and small business players and individual entrepreneurs. True to the innovative spirit of the IT sector, the cluster spurred growth in other industries. For the cluster residents, this opened opportunities for business development and new projects—by attracting interested partners, investments, and proactive brand promotions. Ultimately, businesses could relocate teams temporarily or permanently to a relatively safe region, continue operations, pay taxes, and support the country’s economy. We also created a charitable fund within the community, systematically aiding the Ukrainian Armed Forces.

I have always strived for 4TEAM to stand out with speed, quality of work, and flexibility towards our clients’ diverse business needs. The latest challenge for me and my team was a request for assistance finding niche experts in the defense-tech domain. We rose to the occasion.

We had worked with international companies before, but our reach expanded significantly this year. We assisted tech companies with headquarters in England, the United States, South Africa, Romania, Croatia, Spain, and Portugal in finding worthy professionals.

We helped IT specialists who had already been mobilized to find jobs in the defense industry that matched their expertise. They could utilize their skills and experience to aid their country in the fight against the aggressors.

Our agency strives to help businesses create and strengthen powerful teams and individuals to find work and contribute to the long-awaited Victory of Ukraine in the war.

Forecasts

I will start by addressing the global trends that inevitably influence Ukrainian ones. Global tech recruiting forecasts:

• The global demand for IT specialists will continue to rise in the coming years, driven by several factors, including the growth of the digital economy, automation, and the need to invest in new technologies.
• Remote work will continue to gain popularity in the IT industry, allowing companies to hire employees worldwide and providing greater flexibility for workers.
• Emerging technologies such as artificial intelligence and machine learning will continue transforming the IT industry. These technologies automate tasks, improve productivity, and create new products and services.
• There will be a surge in startups. Innovation and investment in innovative projects across all domains are expected to increase.

Ukrainian tech recruiting forecasts:

• Despite the war and the pessimistic forecasts of some market players, I am optimistic about the recovery and development of the industry. Ukraine remains a significant market for IT and technology companies worldwide, with an expected continued rise in demand for talented IT professionals.
• The growing demand for IT specialists will lead to increased competition in the labor market. Companies will compete more aggressively for top candidates, necessitating improved recruiting strategies and maintaining market competitiveness.
• The development of new technologies and the startup boom will naturally generate demand for recruitment and team formation.
• The importance of technology is increasing: recruitment companies will continue to utilize technologies such as artificial intelligence, data analytics, and software development to enhance candidate search and selection processes.
• The war has dictated new conditions, leading to many new professions and vacancies. Beyond drone operators, there are rapidly developing niches: developers of maritime and land drones, artificial intelligence specialists, and cybersecurity experts. There’s also high demand in the HealthTech sector for roles like developers of bionic prosthetics and digital therapy, etc. Unfortunately, it’s under these circumstances but Ukraine now has the most significant experience in using and developing military-tech products.
• Everyone involved in the tech industry will be in demand and much needed. Defense-tech startups are being actively created, teams are expanding, and investments in innovation are growing. Among the promising directions where motivated people and investments will be needed are drones, robotic ground platforms, artificial intelligence, electronic warfare, satellite communications, situational awareness systems, air defense, and maritime drones. There’s active collaboration between businesses and the state, with partners engaged in creating conditions for technology development – the Brave1 cluster has been launched to ensure that innovative development ideas are quickly implemented and bring results to the front lines.
• The development of online education and retraining is growing due to rapid changes in the labor market, with candidates increasingly looking for learning and retraining opportunities.
• Assistance for career switchers will become more prevalent, with career counseling for candidates and the widespread application of in-depth psychodiagnostic personality, which helps determine the fields of activity where a person will thrive and achieve results.

Advice on standing firm

To have a business and be an entrepreneur today is about courage, faith, determination, strength, and love for your country and its people. There are many such inspiring examples in Ukraine. So my advice is to stick together and unite. Together, we are strong. This approach brings support, help, new ideas, and the energy to continue working hard and achieving our goals. The world’s attention is on Ukraine, primarily due to the war. Meanwhile, behind this are brave people, ambitious goals, successes in digital transformation, and powerful Ukrainian technologies. The world should know — Ukraine creates quality projects and products that everyone can use – individuals, businesses, and entire countries.
The best day is TODAY. Life is happening with us right now, at this very moment, not tomorrow, not yesterday. One is unknown, and the other has already passed. Thanks to our superheroes in the Armed Forces of Ukraine, we are one day closer to VICTORY today.

A-HR

Anna Vasiukhno, Founder

We concluded 2021 with notable success and entered 2022 filled with optimism. Our financial plans were exceeded by 20%. We secured numerous new contracts and won bids. However, a full-scale invasion followed.

What saved us was our work across diverse vacancies and projects. We have dedicated teams handling everything from mass recruitment to IT and top-level positions. This strategy proved quite successful.

I know not all agencies operate this way. The prevailing wisdom suggests that specializing in a single industry is better: some focus on particular niches, some solely on top positions, and others exclusively on mass recruitment. Our flexibility was our savior when many sectors took a hit, with IT initially standing strong.

We stayed afloat in the war’s first months thanks to this sector. Later, as IT faced challenges, our recruiters were able to pivot and take on new projects in other areas, working as Full-Stack Recruiters.

We didn’t lay off any employees as a cost-cutting measure. Some relocated to the US or the EU, while others faced issues due to the occupation. Naturally, there was some attrition.

We lost nearly half of our revenue. It was tough, but we had reserves. It’s crucial to ensure that a company maintains reserves. These reserves allowed us to endure. Now, we plan to increase our safety net.

For instance, if previously we aimed for reserves sufficient for four months, our goal for this season is to have a six to nine-month cushion.

Client Relationships

Throughout the war, all our clients have maintained communication with us. This aspect underscores the importance of choosing partners. It is indeed in challenging times that genuine relationships with partners reveal themselves. Such support, advice, and exchange of experience have been invaluable to us and them during critical times.

The price we offer is not the primary deciding factor. Our appeal to clients lies in our approach and flexibility. For example, when a client needs to hire a driver, an office manager, or a CTO, we are always ready to assist or recommend recruiters who can do a better job.

We have been in the market for seven years, and some of our clients have worked with us for this entire time. Our contracts renew automatically based on mutual understanding, building long-term relationships, and trust. This match is formed at the stage of getting to know the client, right at the beginning of our relationship. We aim for deep, enduring partnerships with our partners, prioritizing long-term engagement over one-off recruitment.

In this context, a “Western” approach is often discussed. However, I would not want to classify it as “Western” or “non-Western.”

Sometimes, our clients say we are one of the few who do not start a conversation by immediately discussing price. This way of doing things is appreciated – the “Western” approach, where establishing contact and relationships comes first, possibly offering free consultations or advice. For instance, with the onset of the crisis, we see how different entities approach problem-solving, and thus, we eagerly suggest these options to our clients who need help and advice.

In the end, our long-standing partners have greatly supported us. For example, our contact at one company, understanding the situation’s complexity, said: “We will give you vacancies.” This treatment was precious.

Other clients, without vacancies to offer, proposed help finding partners to assist us. One such client negotiated with their London partner and effectively introduced us to a new client.

The Strength of the Team

Our success also lies in our team comprising people of very diverse ages (our whole team spectrum ranges from 19 to 55 years) with different professional backgrounds: systems companies, entrepreneurial experiences, and medium-sized businesses. The team must be diverse, and I see that it genuinely helps. Everyone brings a unique perspective to the team, which is invaluable.

What Helps Our Business

Warm sales have been our focal point in business, thanks to our established client base and word-of-mouth recommendations. This approach diminished the need for cold sales tactics.

Additionally, we’ve welcomed new clients who were previously unfamiliar with navigating the market. Working alongside these newcomers has been invaluable, as it’s allowed us to grow together with them.

Our team places high importance on the social aspect of our work. Seeing the benefits we deliver to society fuels our drive to progress. We have embraced innovation, frequently devising new strategies that yield results.

Thus, I advise other agencies not to fear the unknown, even if they feel inexperienced.

Geography

Even before the conflict, we modestly promoted our agency abroad, attending conferences and engaging with international journalists. As a result, a British ranking platform recognized us as the best IT recruiting agency in Ukraine. I acknowledge that IT recruiting is competitive, and rankings can be subjective. Nevertheless, such recognition increases our confidence as we enter international markets.

Previously, our client distribution was 80% in Ukraine and 20% abroad. As of the third quarter of 2023, the ratio has shifted from 65% to 35%. This change is not just because we’re reaching new markets, but also because our clients are expanding internationally.

Forecasts

In the market, those who have withstood the trials of COVID and then war, who have managed to adapt, remain standing. Ultimately, those who accurately perceive reality and are ready for complex tasks and challenges will persist.

Overcoming the desire for things to be “as they were before” is challenging, but the past will not return.

Thanks to the strong and conscientious players, Ukrainian recruiting will evolve to a higher quality level. Newcomers will enter the scene — and that’s a positive development.

I predict — and certainly hope — that quality services will command higher prices. In conversations, clients often express their willingness to pay for quality. Price will not be the deciding factor, especially in the country’s largest cities. Smaller localities will retain their specific characteristics, but even there, local agencies and freelancers will strive to meet the market’s primary standards.

There are many challenges we need to work on. We are already thinking about how to bring people back to Ukraine. This is not only about Ukrainians. Engaging with candidates from all over the world who could benefit Ukraine is crucial. We are already working in this direction, not waiting for the war to end.

Another critical aspect is collaboration. Even before the war, I communicated with agencies that shared similar business practices and ethos, not viewing them as competitors. There is enough work for everyone, as each entity has uniqueness. We must communicate, share experiences, and create something beautiful together.

Alcor

Dmytro Ovcharenko, CEO

Before the war, we handled about 130–150 vacancies per month. After the war began, the number of vacancies plummeted. Initially, they halved to around 70–80, and then continued to decline. This downturn persisted almost until the fall of 2022, when we hit a low of 15–20 vacancies per month.

We didn’t cut our team, as people are our main asset. We invest tremendous effort in staff recruitment and want to retain our employees regardless of external circumstances. We found ways to save on other resources, such as office space, but not on salaries. Our people have families, they contribute to society, and we must never forget that.

I was in disbelief about the war’s possibility. Even up to the last moment, I thought Putin would heed his advisors and not make such a decision — despite no doubt about his irrationality. The invasion started on a Thursday, and just the previous Monday, I assured everyone at a meeting that it wouldn’t happen. Unfortunately, I was wrong.

Core and Additional Services

Unlike typical recruitment agencies, we focus on comprehensive services for setting up R&D centers outside America. For instance, we started from scratch with BigCommerce and hired 50 people for them within a year.

Geographic Focus

95% of our clients are based in America. I studied there and have long worked there, so naturally, most of our clientele is also from there. However, we do not fill positions in America. For our American clients, we find talent abroad, especially when they are looking to save costs — since American candidates are among the most expensive.

Even before the war, we began collaborating with Poland and Romania. Thanks to these markets, we managed to recover the number of vacancies we handle. Currently, we are still operating at half capacity, but these locations allow us to stay afloat and hope for improvement. We are also present in Mexico and Colombia. While Poland and Romania are established options, we are still experimenting with Latin America and testing hypotheses.

Hiring in Ukraine

Since the war started, we haven’t acquired any new clients. Almost all our current vacancies are from long-standing clients who already have teams in Ukraine. Of the 70-80 vacancies I mentioned, approximately 20 are in Ukraine.

I recently attended a conference discussing collaboration between Ukrainian business, the IT industry, and businesses in the state of Utah, USA. Utah is investing heavily because it wants to be among the top three regions: Silicon Valley (San Francisco), Seattle, and Utah. When it comes to support and donations, everyone is eager to show solidarity. But as soon as the conversation turns to entering Ukraine as a market, people scatter in all directions.

Regrettably, Ukraine rarely appears on the radar of potential clients. They can hire in America or for lower prices in Latin America and Eastern Europe. Therefore, companies are not willing to take risks right now, especially amid a financial crisis and mass layoffs.

Regarding Diversification

We often ponder whether to venture into new directions or alter our work approach. Occasionally, we experiment with ideas like employee leasing or recruitment process outsourcing (RPO). Some recruitment agencies speak highly of such a model. We see it working in Poland, yet it’s less widespread in Ukraine. Success stories are rare, so it’s more of a beautiful theory (Editor’s note: we did find an example of successful RPO implementation—see the section about Very Busy Recruitment).

When you address a Pole in English, the response is minimal. However, when we hired Poles in Poland or Romanians in Romania, and they began communicating in their native tongue, the engagement was significantly better. Plus, there’s an understanding of the local specifics. Thus, the hypothesis that Ukrainians in Poland would be successful recruiters was disproven. Overall, such processes can’t be standardized, and we’re currently looking at what could be a systematic process.

On the Value of People

People are paramount. Today, global society and business react panically to any news of a crisis. It’s often heard, “We’ve cut our staff by 50%,” and it seems almost a point of pride. This resonates with me and is incomprehensible. Why hire only to quickly lay off? It seems as though people are not valued but merely a resource to be juggled depending on market trends (Editor’s note: the commonly accepted abbreviation HR indeed comes from Human Resources, which conceptually implies the use of people as a resource, as grim as that may sound).

In a business like ours, everything should be focused on people. And I, as a leader, am ready to make any decision to avoid layoffs or pay cuts. That’s a last resort. If it comes down to it, it’s better to reduce everyone’s salary by 10-15% than to lay off someone valuable just for reductions. It’s a matter of fairness: you can’t lay off a few to keep the same salary level for the rest.

Clearly, I’m not referring to unproductive employees. Their dismissal is a separate issue. But when it comes to valuable team members, we should act as a united collective.

Forecasts

We have set July 1, 2024, as the deadline for the war’s end. This date is not based on any factual evidence, but it appeals to me. Of course, we would be thrilled if victory came tomorrow, yet we hold this date as a beacon towards which we navigate.

Two key factors currently impact Ukraine: firstly, the war, and secondly, the anticipation of a recession in America, though it is crucial to note that an actual recession has not even started. The market’s cuts and panic moves are more about expectations. We communicate with companies, most of which mention they have a budget freeze on hiring.

This reaction is common, regardless of the countries they operate in.

In August, I expected the fall business season to be more active. The stock markets showed cautious optimism, and we witnessed a slight increase in key indices, despite the war and other tensions. Thus, my expectations for recovery increased to about 60-65%. This sentiment was fueled by more calls from potential partners and rising indices.

However, as often happens, September reshuffled the deck. Indices fell amidst news of a possible government shutdown in the US. Although a temporary solution was reached, this issue might resurface. Some experts now claim that America is on the brink of a crisis akin to the Great Depression of the 1930s. Hence, optimism has somewhat waned, and my forecasts for market trends are at a 50-50 stance.

The balance is fragile:

• On one hand, a breakthrough in artificial intelligence could herald a new industrial revolution, potentially improving the situation.
• On the other hand, any negative news or new conflict could severely worsen market conditions. Looking at the global picture, new conflict hotspots emerge, such as Nagorno-Karabakh, and the Taiwan issue remains highly risky.

Therefore, the situation is unpredictable, and it is hard to foresee what the future holds.

Advice

Consider other locations that could be potentially profitable or better suited for your business.

After a significant drop (from 120 positions to 20, a six-fold decrease!), we have risen again by entering new markets.

It may sound unpatriotic to some, but this is not about patriotism; it’s about being global. Nothing prevents working globally, paying taxes to Ukraine, helping with donations, and retaining your employees.

It’s feasible to regroup and adapt temporarily, but always with the view that when Ukraine’s growth wave starts, the “wave of pent-up demand” (which will come and be substantial!), one should return and bring maximum benefit to the country.

Capital Recruiters

Pavel Rozdobudko, Founder & CEO

In 2021, the demand for candidates in the market was immense. We consistently had over 100 job openings, roughly 5-6 positions per recruiter.

I noticed signs of a downturn in the market towards the end of December 2021 and into January 2022. While there were numerous agreements with clients, some had already started inquiring about the possibility of an invasion. Companies approached opening new projects and offices in Ukraine with caution.

Many companies sought to protect themselves from potential risks by opening offices abroad, especially in Poland, Czech Republic, and Romania, in preparation for a possible war. This shifted the market: the number of new vacancies decreased, and candidates were less responsive due to the unstable situation.

February 24

Following the invasion’s onset, I immediately wrote to my team, emphasizing the need to prioritize personal and family safety. We also provided financial support, paying February salaries in advance, understanding people’s need for support during these challenging times. Overall, our business nearly halted for two weeks as we focused on ensuring safety.

2022-2023: Developments and Actions

I realized clients would be understanding, but they also had expectations. So those who could work and were safe began returning to work and re-engaging with clients two weeks after the full-scale invasion started.

It turned out many clients were ready to continue collaboration, though the number of positions had roughly halved. Most clients expressed reluctance to hire in Ukraine due to current risks and instability. Companies started focusing independently on Ukrainian candidates. So, we helped them find engineers in Europe.

The primary focus was on countries like Poland, Romania, Czech Republic, Croatia, Spain, Portugal, and Bulgaria. Our goal was to find Ukrainians who had already left or were planning to leave, offering them suitable employment. Moreover, many clients were open to remote hiring.

It was a revelation that we could fill many positions with candidates from Caucasian countries, particularly Georgia, Armenia, and Azerbaijan. We thoroughly explored these markets to find interesting candidates.

Before the war, we had over 120 vacancies; by April 2022, it was about 50. The workload per recruiter was 3-4 positions, which was quite reasonable. Despite the decline, 2022 turned out better than I expected.

In 2022, we mostly had long-standing clients, but a few new ones emerged. Companies always approached us for developers in Ukraine for remote positions or those expanding in Ukraine.

We sought clients in countries like Germany, Poland, Romania, the USA, and the UK. However, companies understood that our main expertise was Ukraine. Clearly, if a Polish company wanted to hire Poles, they would turn to a Polish agency, and in Germany, to a German one.

However, a boastful approach, claiming ‘We will now come in and get everything done with local candidates,’ simply doesn’t work. What has proved immensely valuable, though, is the loyalty of our existing clients.

In early 2022, we faced challenges in filling vacancies in Poland with Poles and in Romania with Romanians. Being foreigners to these candidates, we often filled positions with international talent. Over time, however, we adapted and began successfully recruiting locals such as Poles, Croatians, Spaniards, etc. Each country’s market has its nuances, but experience enables a tailored approach.

Later, beyond the Ukrainian war, the global tech crisis compounded the issue. Europe saw numerous layoffs, and local companies slowed hiring. These trends were influenced by layoffs in American companies, creating a ripple effect.

Our peak workload was at the end of 2022, but the first quarter of 2023 brought a significant downturn. Our active positions reduced by two-thirds to about 13-14. Companies further cut recruitment budgets, and many found their candidates readily available in the market following previous layoffs, enabling them to hire independently. The majority of clients did not turn to agencies for recruitment in Ukraine, as companies were focusing on the Ukrainian market themselves. Agencies typically received the most challenging positions, especially in Eastern Europe.

Searching in the Ukrainian market also presented challenges. Many professionals, content with stable jobs, were reluctant to change, making it difficult to find highly qualified engineers.

Consequently, we had to reduce our staff by 25% at the end of March.

Survival Tactics

Our flexibility and engagement across various business sectors proved crucial. Before the invasion, many Ukrainian agencies didn’t work with companies requiring office-based work. We were flexible with our clients and cooperated with them, even under challenging conditions. Additionally, we collaborated with gambling and betting companies, which were relatively stable. However, even these sectors began feeling the crunch in 2023.

With the team’s reduction, our structure simplified. Initially, we had four teams with 3–4 recruiters each. When the team size shrank to fewer than ten, we merged into a single unit. The decrease in vacancies also led our recruiters to work across different technologies.

Ultimately, we didn’t venture into new services but focused on satisfying our clients’ existing needs.

Forecasts

Observing the Polish and German markets, I see a continued trend in hiring reductions. This is echoed by numerous local recruiters who are now closing more positions than before, as candidates increasingly seek them out.

However, for Ukraine, the IT sector’s crisis is compounded by the ongoing war. Many companies are looking to mitigate their risks, mindful of last winter’s bombings of energy infrastructure. While some clients remain optimistic, the overall market is unlikely to recover quickly. In my view, should the war persist into 2024, we can expect further market contraction in Ukraine.

Advice

• Firstly, flexibility is key. It has been our strength in 2020, 2022, and continues to be so. Adapting to client needs and shifting market realities is crucial.
• Furthermore, language skills, continuous learning, and staying abreast of the latest news are essential.
• Financial stability, with at least a six-month cushion, is also vital to avoid desperate measures and manage finances effectively.

Above all, it’s important to remain humane. Understanding that everyone has their challenges is crucial. Some may be tired, others grappling with personal issues. Especially during the winter shelling, I recognized that some of our staff might face problems with electricity or internet access. Some worked evenings, others mornings or even weekends. The key is to approach each person with understanding and empathy.

Data Science UA

Aleksandra Boguslavskaya, Founder & CEO

Recruiting has been a core aspect, but not the sole focus, of our business since its inception. Since 2020, we have primarily concentrated on outsourcing and outstaffing, effectively creating a comprehensive “umbrella” that spans the Data Science and AI/ML market. We collaborate with top-tier engineers in ML, Computer Vision, NLP, and Data Engineering niches.

Outsourcing accounts for about 60-70% of our business, yet our recruiting agency has always been and remains a crucial component.

We launched in the fall of 2016 and are celebrating our company’s 7th anniversary this November. Over these seven years, clients have consistently sought us out due to our clear focus on the AI niche and our continuous refinement in this area for seven years.

We were the first recruiting agency in Ukraine specializing in AI engineers. Our journey began with organizing Kyiv’s first technical conference on artificial intelligence in 2016. The event, attended by Data Science experts and engineers from across Ukraine and Europe, exceeded our expectations. Notably, the founder of DataRobot from Boston, a company now valued at several billion dollars, Jeremy Achin, was among the attendees.

Following this, we launched Kyiv’s first technical courses in Data Science and then established Ukraine’s first recruiting agency with a focus on artificial intelligence. We have always responded to market demands rather than inventing services. If clients inquire about services we don’t yet offer, we consider and potentially develop them. Sometimes, I might decline requests outside our scope, but if a demand is repeated, we explore and grow in that direction.

Over 95% of our clients come through recommendations from our network, with only a few percent resulting from our business development activities. We’ve built one of the largest AI communities in Eastern Europe, now comprising 30,000 engineers. A significant number of vacancies are filled thanks to this active and supportive community, for which I am immensely grateful to our engineers.

Our journey has been unconventional – contrary to the typical progression of establishing a business and commercial elements first, then considering employer branding events. For us, it was the reverse: first came the conference, then the courses, followed by recruiting, AI consulting from 2018, and since 2020, we’ve been expanding into outsourcing / outstaffing and Solutions providing.

Regarding our service niche clients: 90% are from California, and 10% from Europe. In our recruiting branch, more than half of our clients are Ukrainian companies developing robust products for users worldwide.

Surviving a Triple Blow

In 2020, when COVID began, it was a tremendous shock for everyone. However, when the world went into lockdown that year, there was a significant surge in demand for recruiting and outsourcing / outstaffing, as the tether to specific locations was lost. For me and the entire industry, 2020-2021 were incredibly busy years. During this period, we were inundated with so many requests that we struggled to keep up. People were seeking entire teams. Conversing with peers in my field, I understand that this frenzy was a universal experience.

When the war started, we spent the first week in disbelief, questioning not just our business’s survival but our very physical existence. Would our clients stay with us? Could they afford to pay their bills? Could we continue to work effectively?

So, a week later, I gathered my team and declared that if we stopped working, payments would undoubtedly cease. In that scenario, we’d all be out of money, and I wouldn’t be able to pay salaries. However, if we kept working, we stood a chance.

About a week after the war began, we resumed operations. Many of our clients were in the United States, and they were uncertain about our capacity to perform effectively.

March, April, and May were months of adaptation for the team and posed significant challenges for me as a manager. But from June, I noticed positive business shifts: our company doubled in size in 2022. From June to December, we expanded our team from 40 to 80 people, thanks largely to our outsourcing / outstaffing services. We even managed to attract two major clients from California. This led to ambitious plans for 2023.

However, what I’m observing in 2023 differs from our forecasts. It’s not just the war in Ukraine impacting us. The recession in the U.S. is also a factor. I see how American multinational companies are drastically cutting their budgets. In the U.S. and Canada, teams are being significantly reduced. Large corporations are making substantial budget cuts, and startups are finding it difficult to attract investments.

Our analysis reveals that when the wave of layoffs began, no category was safe: even top-class AI engineers were let go, not to mention non-tech specialists. These were thousands of layoffs.

Today, not only are many people losing their jobs, but there is also a major crisis in funding, making it tough for startups to secure financing. This becomes particularly evident in my discussions with investors, our partners in funds, and startups seeking additional funding.

Valuations and average checks for startups have significantly decreased. If companies and startups fail to secure funding or receive far less than expected, it naturally becomes challenging for them to invest in their teams and develop their products.

Thus, this chain of events – starting with COVID, then the war, followed by the U.S. recession – has created a rollercoaster of market sentiments.

Challenges for Ukraine and Competing Countries

The recession, stagnation, and war in Ukraine are the primary issues impacting us. Although the war didn’t immediately affect our sector, its impact is now palpable. Currently, our team consists of over 80 professionals, but the volume of work and projects has significantly decreased compared to 2020, 2021, and 2022. The war has made us more vulnerable in the international market.

• It’s now much harder to convince partners of our efficiency. Everyone remembers the winter blackouts in Ukraine, which substantially affected overall productivity.
• Salaries for Ukrainian engineers have dropped by 10-15% over the last 1.5 years due to the war. However, they remain relatively high, even compared to Europe. A senior engineer’s salary in Ukraine can reach $7,000 gross, while in India or Pakistan, it’s about $3,500, making it twice as inexpensive. And notably, these countries are not at war.
• The mentioned countries pass all necessary information security checks (but those who cooperate with Ukraine find these checks very challenging).

In the next 5–10 years, competition will intensify as countries like India and Pakistan are developing at remarkable rates. Their universities are also expanding opportunities, producing numerous qualified engineers. We must understand that these countries pose serious competition, which will only grow.

Another rising competitor is the Latin American market. Many companies have decided to open offices in Colombia, Mexico, and Argentina, as these are in the same time zone as the USA. Furthermore, the costs there are much lower.

Poland should not be overlooked either, as Polish specialists are less expensive but also highly professional.

Client Portfolio Dynamics and Recruitment Strategy Shifts

Our client portfolio, particularly in the recruitment sector, has undergone significant changes. Presently, the primary segment of our business and the main source of cash flow is attributed to our Solution Providing division.

Nevertheless, our growth can also be credited to the acquisition of new clients. In outsourcing and outstaffing, we welcomed two major new clients, while in the recruitment sector, new clients represent 80% of our total clientele. These new relationships have been pivotal in navigating a crucial phase of our development, offering opportunities and revenues that our longstanding clients could not provide.

Approximately 40–50% of our recruiting agency’s clients are Ukrainian hi-tech companies. These firms develop cutting-edge products for a global audience while their teams or founders are based in Ukraine. The remaining 50% are spread across various regions, including the MENA region, the USA, and Europe.

Growth and Team Expansion

Our recruiting team now comprises 10 professionals. In the summer of 2022, we expanded our team by hiring five additional recruiters. These professionals proficiently fill positions for both the agency and our service division. They are also instrumental in sourcing specialists for internal vacancies within our company. Consequently, if there is a demand for top-tier experts in data science, our team stands ready to assist.

Forecasts and International Observations

Much depends on how quickly the USA recovers from the recession. I am hopeful for positive changes in 2024, but currently, there is little cause for optimism.

Additionally, it’s crucial to monitor the situation in Ukraine, especially concerning power outages and our preparedness for winter.

Attention should also be paid to the aforementioned emerging markets.

On a positive note, I believe that we possess highly skilled professionals capable of competing internationally. In Latin America, there is a predominance of Junior/Middle-level professionals, with a notable absence of senior-level developers or tech leaders. However, it’s important to remember that such talent exists in India.

Moreover, continued and even stronger global support for Ukraine, not only in military aid but also in business opportunities, will significantly contribute to our progress.

Don’t Panic Recruitment

Eugene Haiduchenko, COO & Co-founder

Before the full-scale invasion began, our company, Don’t Panic, was thriving. In the six months leading up to the invasion, we achieved our highest ever turnover since inception. We had earned a solid reputation in the market among candidates and were efficiently and swiftly filling our clients’ vacancies.

Over the past year and a half, the demand for outsourced recruiting naturally diminished, leading to market price undercutting. However, our team experienced only a brief period without any job vacancies to work on.

Regarding Layoffs

We had a substantial financial cushion, which ensured stable support for our team until October. When the funds ran out, we had to make changes. My partner and I gathered our courage, approached the team, and announced that we could no longer pay salaries – the next paycheck would be their last. We transitioned to a bonus system, with larger bonuses but no fixed salaries, and promised to assist everyone in finding new positions. To our surprise, the team chose to stay. This unexpected development required us to revise the bonus system to accommodate everyone’s needs and nuances.

For about another six months, we operated in this manner. Eventually, some team members decided to leave, marking a natural fluctuation in staff.

What Helped and Continues to Help

• In recent years, we actively developed our personal brands on LinkedIn. Along with word-of-mouth referrals, this ensured a stable stream of clients, even after the war began. Although leads decreased, we continued to meet and engage with new clients.
• We returned to sending newsletters for the first time in three years, which, while not overwhelmingly successful, yielded a decent response rate due to our LinkedIn presence.
  An instance stood out when we filled a CTO position for a European product. Shortly after, a recipient of our newsletter recommended us to another company, for whom we had just filled that CTO position.
  This reinforced our belief in the efficacy of demand generation through expert content on LinkedIn.
• Regarding geography, we adapted more swiftly and learned to operate in the European market.
• All this required significant cost reduction, a slight alteration of our financial model, and lowering our service fees.
• We found individuals perfectly suited for key roles. Recently, we promoted our sourcing lead, Yulia Havrylyuk, to the COO position. The current market demands an analytical approach, foresight, precise selection, and robust sourcing – all of which Yulia, an expert in the field, is now managing.
• Team culture and relationships are of utmost importance. During a crisis, a solid foundation is essential. When a team is ready to do what is necessary, understands business objectives, and works together, it helps navigate through the crisis more quickly and with fewer losses, ultimately strengthening the company.

Overall, a combination of factors and contributors offers comprehensive support: both old and new clients, exploring new markets, niches, and services.

Particularly, our own brand has been instrumental. We have studied and applied Demand Generation for so long that we launched a second agency specializing in B2B sales on LinkedIn. This resource has been invaluable in client acquisition.

Additionally, we initiated a new project, Juniverse – an ecosystem for juniors in IT. Here, we produce podcasts for IT beginners and actively collaborate with other companies.

Forecasts

Since early 2023, when a new client – a Ukrainian outsourcing company – started working with us, other clients have also become more engaged. Just when you think the market is almost dead, the arrival of Ukrainian clients is inspiring. If there are no drastic changes, the market will gradually recover. This doesn’t mean things will go back to how they were. Currently, there are many more candidates than vacancies, and this has definitely impacted the market. Companies are altering their sales tactics, focusing more on brand care, a strategy that plays out in the long term.

Similar trends are happening in recruitment. Market players are increasingly focusing on developing an employer brand and improving candidate selection to ensure longer project commitments.

Advice for Standing Firm

• It’s crucial to observe the market behavior and anticipate what clients and partners expect, adapting accordingly.
• People are inclined to unite and help each other. By collaborating, we can undertake substantial projects, earn together, forge new partnerships, and share knowledge. Moving away from aggressive competition and knowledge hoarding is beneficial.
• Be proactive. Talk about your expertise, invest in networking and personal branding. This applies not just to companies and agencies; personal branding is now essential for every professional.
• It’s a well-known fact, but especially during a crisis, one must be highly active. A crisis signals the need to accelerate – to initiate new projects, collaborate, implement ideas, build hypotheses, and test them. This truly works. The adage “a crisis is an opportunity” is grounded in the real experiences of generations.

Hirey Design Recruiters

Kristina Holysheva, Founder, Lead Recruiter

Before the full-scale invasion, our agency had been operational for just over a year. Our peak period was the fourth quarter of 2021. We gained many new clients, our team was at its largest, and our processes were finely tuned. Most of our clients came through referrals, eliminating the need for active sales processes.

However, with the onset of the war in February and March 2022, we lost more than 50% of our clients. Even our major clients in the U.S. reduced their orders. After February 24th, especially in early March, there was a sense that we might have to shut down the business as more than half of our partners halted their hiring or cancelled positions.

I recall the occupation on February 24th and 25th, trying to catch an Internet signal on the second floor of my house to update our U.S. partners about candidates, vacancies, and the current situation.

Crisis Management

As time passed, we began to recover. By mid-March, we were actively seeking new clients, primarily through LinkedIn. We rolled out cold sales strategies and actively informed potential clients about our readiness for new projects. In March, we started working with new U.S. clients eager to support Ukrainian business.

To attract these clients, we reduced our service fees by 25-30%. This strategy helped us stay afloat. Our main goal was to preserve our team and the agency, not necessarily to make money.

About the Team

Some of our team members chose to move abroad. At that time, our salaries were not sufficient for a comfortable life in Europe. As a result, our team size halved, but throughout the war, we didn’t let go of anyone, except for one person who didn’t pass their probation. We always paid salaries and bonuses on time, as we had a financial cushion at the conflict’s outset.

Next Steps

We successfully saved money by canceling various subscriptions and reducing office expenses at our coworking space. We utilized free access to communication tools and email marketing, striving to secure discounts or waive fees for other tools when possible, without compromising team efficiency.

At one point, I considered offering career counseling for designers at our recruitment agency. However, as our client base grew, this need diminished. Simultaneously, we used this client activity lull to develop internal processes, standardize, and document client and candidate interaction procedures.

We enhanced our presence on LinkedIn, and I personally became more active on my profile.

During this time, we also reevaluated our approach, worked on branding, and developed a new website for the company, complete with new branding and a logo. We laid the groundwork for an inbound strategy, formulating a client acquisition plan. I invested significant effort in creating a document titled “UX Hiring 101,” filled with useful links and templates. This document actively aids in building a positive image and brand awareness among designers and design managers. We also found time for attending events, recording podcasts, and conducting interviews.

Working on the international market remains challenging. Many colleagues from my time at Google seek advice on starting their own agencies in the USA. Starting a business is tough, and many eventually opt for employment. A friend, a former design recruiter at Facebook with 5–7 years of experience, struggles to survive in the market and attract new clients.

Given the current market downturn, we see a great opportunity to hire talented individuals. We have one open position and plan to add a recruiter by year’s end. The market is rich in talent, so I advise hiring even if the new hire isn’t immediately fully occupied.

This period has helped us understand who we are and prepare for an active work restart.

Geography

We’ve sought candidates not only in Ukraine but also in the USA, Canada, Latin America, experiencing increased interest in Europe and having worked with Singapore and Israel. Currently, our primary focus is on the Middle Eastern markets. Despite lower recruiting fees compared to Europe, we see great potential there.

Approximately 60-70% of our clients are located outside Ukraine. Recently, we’ve observed a rise in vacancies within Ukraine.

Forecasts

Predicting the future of Ukrainian recruiting, especially focused solely on Ukraine, is difficult. We need to monitor how the economic situation evolves. I believe the next year will bring a recovery – how much longer can the market fall? We’re already noticing client activity, especially at the start of the new business season in September.

Advice

• Always maintain a financial buffer in business.
• Be flexible, particularly regarding service pricing, as there’s global economic uncertainty, and everyone is economizing.
• Regarding payment models, many agencies previously required advance payments, but this isn’t a common practice in the American market. Payment usually follows successful candidate placement. When you mention advance payment, it scares clients off, so we don’t even offer it.
  Considering our competitive advantages – lower taxes and recruiter salaries in Ukraine compared to the USA – we can offer slightly cheaper services to clients.
• If you have a specific specialization, be a niche agency. We focus on design, and this niche positioning greatly benefits us.

Indigo Tech Recruiters

Kateryna Osadchuk, Co-owner & CEO

In 2022, we anticipated revenues of about $3.5 million, in line with the growth and results we saw in 2021. However, the full-scale invasion led to a 40% decrease in revenue compared to 2021, though the numbers were still significant. Almost all of our profits were allocated to supporting our team and the Armed Forces of Ukraine. For 2023, we expect even lower revenue outcomes.

As of February 24, 2022, our team consisted of 40 people. We tried to maintain our full team for over a year but eventually had to make significant cuts, realizing the recession would continue into 2023, and it was crucial to endure this marathon.

Due to these reductions, we as managers had to take on many roles ourselves, returning to operational work and sales.

Anna Stetsenko, the founder and co-owner of INDIGO Tech Recruiters, humorously remarked for the past seven years that she had entered a “deserved recruiting retirement” and was engaged in other investment and development projects. Within the agency, we discussed strategic decisions, outcomes, and crises.

Now, we’re actively working together, dividing responsibilities. Anna is in Kyiv, and I am in Switzerland, which helps us maintain offline connections with Ukrainian and European clients and our team.

Geography

Surprisingly, many of our clients are now Ukrainian companies, whereas before the war, most were from the USA, UK, and Switzerland. Our main focus is on finding top managers and leaders who can help Ukrainian entrepreneurs navigate the crisis and enter international markets.

Ukrainian businesses with a go-global strategy are also keen on attracting specialists from various countries to build international teams and foster a culture of diversity.

Regarding clients from other countries, during the “good old COVID times,” we significantly expanded our search for technical talent to Eastern Europe and Latin America. Currently, we are mostly looking for technical talents in Poland, Bulgaria, Romania, and other Eastern European countries for product companies from the States, UK, and Switzerland. The ratio of new to regular clients is 50/50.

Before the full-scale invasion, we were building R&D centers in Ukraine for international IT clients, creating hundreds of jobs. Now, the demand for this has nearly vanished. We’re negotiating with three international companies (web 3.0, health tech, and manufacturing) ready to hire during the war. We hope to continue creating new jobs in our country.

Forecasts

We don’t foresee market growth in the near future. There might be times of higher demand, like September-November or March-April, but these are far from the pre-February 2022 job vacancy levels.

What We’re Doing to Strengthen Our Position

Meanwhile, we continue to evolve and launch new projects. For instance, we’ve updated our IT recruiting school and career consultant school. We’ve built a partnership network in Latin America. We’re actively automating, improving processes, and exploring AI possibilities in recruiting. We’re also about to announce a separate agency for finding leaders for Ukrainian businesses (not just in IT).

Creating a business safety net was a wise decision, allowing us to invest in new directions, even when reinvesting profits isn’t an option.

Currently, on one hand, we have a clear five-year goal. On the other, we’re focusing on tasks and results for the current months, as flexibility, swift response, and resource concentration on main tasks/directions are vital during a crisis.

Nothing is permanent in life – everything eventually ends. We need to just live life here and move forward at a pace allowed by internal resources and external circumstances. Supporting our community and clients. Backing Ukrainian businesses. And, of course, continuing to donate to the Armed Forces of Ukraine.

Intropia

Max Uper, Founder & CEO of intropia, Make it in Ukraine and FrontRunnrs recruitment agencies’ Co-Founder

At Make it in Ukraine, we actively collaborated with crypto companies long before the war began. Our focus was on sourcing global talent for international firms. However, the onset of war brought a unique challenge. Companies were hesitant to hire from Ukraine, despite their continued interest in Ukrainian talent. This spurred our rebranding to FrontRunnrs, which now exclusively specializes in crypto sector vacancies.

In these turbulent times, traditional business survival strategies offer limited help. The situation remains complex. What truly helped us stay afloat were specific strategies:

• Expanding our networking, mainly through conference participation.
• Being flexible in accepting various job vacancies, seizing opportunities as they arise.
• Reducing service commission fees.
• Unfortunately, it also involved staff reductions.

At the war’s outset, we didn’t lay off anyone. Instead, we paid salaries three months in advance, telling our team, “You can work, take time off, or volunteer for the country. You’re financially secure for the next three months.” Ultimately, we nearly exhausted our earnings from 2020–2021 on salaries and national aid.

Before the war, we also ventured into product development, creating intropia, a referral-based recruiting platform. It enables companies to access quality candidates for Senior+ positions in tech and Web3 sectors, sourced from 200+ global recruiters. Besides recruiters, our ‘introducers’ network includes various Tech/Web3 communities, educational platforms, etc.

Currently, intropia is my primary focus. Despite market challenges, it consistently attracts clients. We’ve built a product that’s faster, more efficient, and cost-effective than most European or American agencies, and our clients highly value this.

ITExpert

Stas Shihov, Founder & CEO

Nick Kliestov, Co-Founder & CTO

In 2021, which we deemed our most productive year, we set a benchmark for our performance. However, 2022 posed significant challenges. Due to the events of February 24, our revenues plummeted to approximately 55% of our 2021 figures. In 2023, although the year is not yet over, we are already operating more efficiently than in 2022. We anticipate reaching 75-80% of our 2021 revenue levels by year-end.

Reflecting on the period before the invasion, we were actively recruiting for 150 vacancies, driven by a substantial demand for manpower. Yet, from mid-2022, the number of open positions fell to 60 – a drop of 2 to 2.5 times. However, the situation is now stabilizing, with over 100 vacancies, signaling a return to our previous numbers.

Workforce and team dynamics

Despite the difficulties, we avoided mass layoffs. Some changes in the team were inevitable, but the majority remained with us. These changes were influenced by shifts in the labor market and overall market conditions: around 10-13% of our staff left, mainly due to psychological stress or decisions to relocate to other countries, such as the USA. Time zone differences also posed challenges for interaction. Some team members transitioned to other companies or from agencies to specific product roles. Nevertheless, we continued hiring new talent, keeping our team size consistent.

Although the number of job vacancies has decreased and the average workload per employee has reduced (from 150 vacancies in 2021 to about 100 now), the complexity of each position has increased. The roles in 2021 were simpler, while many now require specialized skills. Previously, an employee might work on several projects simultaneously, but tasks have become more complex, demanding significantly more effort. This complexity necessitated a redistribution of workload, with several individuals collaborating on a single task.

Autonomous Office

As for our office operations, the lockdowns initially forced us to adapt to remote work. Yet, last year, we returned to the office due to blackouts. We quickly modified our office to be autonomous, equipped with batteries, Starlink for internet, and additional power sources for sustained and stable laptop operation. This adjustment significantly aided our recruiters in continuing their work amidst the crisis. Additionally, gathering in the office during these challenging times provided substantial psychological support for the team.

Crisis Management Measures

1. We halted planned salary increases and other financial incentives for our team.
2. We reduced commissions for some clients, particularly those in Ukraine during the invasion who were also experiencing hard times. This initiative was mutually beneficial for us and our clients.
3. Given the decreased activity of many clients, we became less selective about the projects we undertake. Unlike in 2021, when we could afford to be choosy and focused on the most profitable projects, we now embrace more flexibility.

Previously, our focus was on incoming client inquiries, but as the situation became more challenging, our strategy shifted to more actively promoting our brand. Nevertheless, our inbound channels still operate quite effectively.

Our existing clients have been incredibly supportive. It’s heartening that some continued their collaboration with us uninterrupted after the invasion began. Others, though returning more slowly, are gradually resuming their requests for our hiring services. At least once every two months, one of our longstanding clients returns.

Geography

Most of our clients continue to request recruitment in Ukraine. Some have moved to other European countries (like Poland, Romania, Czech Republic, or Estonia), seeking more “affordable” European locations. Despite the war, many clients continue working with Ukrainian developers, valuing their expertise and accepting the associated risks.

Approximately 85% of our recruitment is in Ukraine, hiring local developers. The remaining 15% is distributed between the USA and Eastern Europe, including new clients and those from our existing US/EU client base, for whom we are finding candidates in their locations.

At the end of winter and the start of spring this year, we experimented with reaching out to clients in the USA to find local candidates for them. However, the results were not very positive, possibly due to the global wave of layoffs creating an abundance of available candidates, thereby reducing the demand for agency services.

Consequently, we have modified our strategy, studied the market, and are now, from autumn, attempting a new entry into the US market. We are not considering other locations to maintain focus and adapt to specific legal and tax practices in a single area. Moreover, the USA’s diverse nature, constantly welcoming people from different countries, makes clients open to collaboration if the quality of work is high.

New Approaches and Trials

We are currently testing mass recruitment as a new direction, encompassing roles such as managers and sales personnel. One client requested our assistance in this area, prompting us to explore this option. Thus, in addition to IT specialists, we are now assisting other professions.

Forecasts

1. Recruitment will always be relevant in the market, especially in Ukraine. Despite the war, global crisis, and mass layoffs, the Ukrainian developer market remains attractive to companies. However, everyone now accounts for the wartime risks.
2. There’s always demand for top-tier Senior candidates (though it’s much harder for Middle and especially Junior roles). Ukrainian, Russian, and Belarusian developers have always been highly valued in the global market. However, many now prefer not to engage with Russians and Belarusians, even if they have relocated to other countries.
   Currently, even outstanding candidates are receiving fewer offers from employers, not 5-6, but rather 2-3.
3. Companies are increasingly focusing on complex and intellectual fields like Data Science, Machine Learning, and Computer Vision when working with agencies. The demand for such specialists is rising, but their numbers remain limited. The burgeoning field of AI technologies is driving the demand for specialized experts.

The complexity often lies not in the professional training of the specialist but in the working conditions. For instance, if a company requires office attendance in a less popular location or offers less convenient legal and procedural options. If they realize they cannot fill such vacancies through their published listings, they turn to agencies for assistance.

Advice for Staying Grounded

It’s crucial to focus on planning and building systematic processes within a company. Many recruiting firms, lacking systematic processes, are essentially groups of freelancers under the name “agency,” often delivering mediocre results. Moreover, acting professionally is extremely important. Some agencies either engage in price undercutting or provide services that cast a shadow over the entire industry.

Our intuitive and rapid growth has been largely due to our focus on process development. This approach helped us stay afloat during challenging times and retain many clients. Financial planning also plays a key role. Many companies lack a financial “safety cushion” for even a few months. We have always strived to maintain funds for several months’ worth of salaries, regardless of circumstances, as keeping our team intact is paramount.

Risk management also aids in better understanding where to allocate funds and which decisions to make during crises. For instance, we analyzed how cutting certain expenses would impact us. We also negotiated with service providers that constituted significant expenses (like platforms and tools we use) to secure better terms.

MoreThan

Sofia Drigola, Co-Founder

Before the full-scale invasion, our primary focus was on the Ukrainian market, offering services in IT recruitment, HR consulting, and Employer branding. This strategic choice was upended on February 24, as all our clients abruptly froze their projects. Offers we had received before the invasion were also frozen and eventually cancelled. This resulted in tens of thousands of dollars in lost offers, a painful setback for us.

In late February, our team remained in constant contact but work came to a standstill. We paid salaries in advance, recognizing the uncertainty of our situation. During this time, my partner and I contemplated our next steps, realizing the need to start anew.

Rebuilding and Expanding Horizons

Our agency had already experienced a relaunch five years prior, when my partner, Olga Novikova, and I decided to work together. Having re-established the agency three years before the invasion, we had developed lifelong partnerships with several companies.

By early 2022, our service charges were set between 18%-20%, an increase from the 15%-18% range in 2021. However, as the conflict intensified, we observed a drastic drop in the rates of other agencies, from 18%-20% to 8%-10%. This market shift compelled us, like many others, to reevaluate and adjust our terms to remain competitive and responsive to the evolving landscape.

Within three weeks, we secured a new American client with a Ukrainian team in Kyiv. Over 2.5 months, we successfully recruited three candidates (Java, React, Full-stack developer – Java/React).

In late March, we launched an international sourcing service. After experimenting with different models and working with freelance recruiters (which proved challenging), we returned to in-house sourcing for its measurable, transparent process and additional income for the team.

Geography

We expanded our search globally, including countries like the Netherlands, Czech Republic, India, England, Poland, Romania, Germany, Turkey, China, and recently Africa. Notably, we facilitated relocations from India and Turkey to the Netherlands.

We took on unusual and complex projects, such as Application Security Engineer and Application Security Testing Engineer positions for a Fortune 500 company and a major European fashion retailer. Our international engagements significantly broadened our expertise, pushing us to take on unconventional vacancies and expand our portfolio.

International Support and Collaboration

We received numerous messages of support from colleagues abroad, including Germany, the Netherlands, the USA, and Japan. Some offered collaborative recruiting ventures. Eventually, we partnered with an agency, helping to fill positions such as a DevOps role (relocation from Turkey to the Netherlands) and a Senior Consultant Data Ecosystems for a Dutch government project.

Adapting to a Permacrisis

The world has entered a state of ‘permacrisis,’ making adaptability crucial in both personal and business spheres. Despite ongoing challenges, we organically updated our service offerings, exploring alternatives to traditional recruiting.

In the summer, we introduced new services like mass recruiting and mass interviews, primarily outside IT, including sales, support, and call center operations. We also launched an RPO service. Within six months, we conducted over 1500 interviews and took on a promising startup, helping them build their team and organizational structure from scratch.

The State of the Team

Our team remained intact thanks to a well-crafted strategy and an emergency budget. This year, we reluctantly parted ways with two colleagues due to decreased recruitment and marketing needs but hired someone for mass recruiting. We’re currently testing a new model of increased project bonuses without a fixed rate, with results to be evaluated at year’s end.

OnHires

Vasco Grieg, CEO

Before the full-scale invasion of Ukraine, our operations were in regular mode. The labor market was quite dynamic, with a burgeoning cluster of remote job opportunities and companies opening R&D offices in Ukraine.

Following the invasion, we ceased operations for two months, dedicating our efforts to volunteering as an agency. Each of us strived to contribute our part to the victory.

In the first months of the war, the number of Ukrainian job openings we handled dropped by 40-50%. At the same time, the volume of resumes received by our agency surged several-fold.

Survival strategies and crisis management actions we took include:

• Initiating inbound and outbound lead generation.
• Investing in SEO.
• Launching social media channels.
• Implementing referral and partnership programs.
• Entering freelance marketplaces.

Regarding downsizing: during the war, we grew twofold, especially in the first year. Recently, we downsized our sales and marketing department, as we started handling these functions personally. This led to a reevaluation of roles and development strategies.

Growth facilitators:

• We launched two new services tailored to different client profiles.
• We developed a Customer Journey Map (CJM) and an upselling strategy.
• We provide free consultations to startups and job-seeking candidates.

Reteam and BazaIT

Viktoria Nalyvaiko, Founder of reteam, CEO & Co-Founder BazaIT,  Ambassador WTECH Ukraine,  Mentor at Growth Factory Academy

I’ll illustrate this with the examples of two businesses I’m involved in. The first is BazaIT, which we launched on December 20, 2021. But then, on February 24, a full-scale invasion occurred, marking a critical juncture for us. Initially, we had planned to reach self-sufficiency by March or April.

Throughout the year, we offered our services for free because the recruiting sector needed support. We understood the importance of our work, so we listed all IT positions at no cost, enabling IT professionals to find employment. Our focus was on assisting Ukrainians.

Currently, BazaIT employs five sourcers, including a team leader.

The second business, Reteam, has a slightly different story. We’ve always attracted clients through our referral system and have a stable client retention rate. Our agency can be described as niche or family-oriented, as some clients have been with us for 5-6 years.

Up until February 24, Alfa-Bank was among our clients. We provided them with consulting services but naturally terminated the contract afterward, as we wanted no association with anything Russian.

After February 24, clients began returning. By March, our recruiting team was already working on two vacancies from our clients.

Post-March 2022, we’ve seen a steady influx of recruiting clients. We’re concurrently working on several different positions and have another potential client approaching us.

Survival strategies and ongoing efforts

At BazaIT:

The first step we took was to create a free platform. This expanded our talent base and earned us trust in social and business circles. Our primary social mission was to help people find jobs, not to make a profit.

In terms of metrics, our conversion rate of applications to job vacancies from the overall talent pool averages 60-70% – an active candidate base. We’ll calculate our closure rate at the end of the year as we’re continually evolving our strategies and processes.

By 2022, we were operating on investments. We approached our investor for financial support. He suggested relocating to America, where we had an American angel investor. However, we decided to stay and grow in Ukraine.

We noticed several competitors leaving Ukraine, which made the market less competitive. Seizing this opportunity, we signed a memorandum with the Ministry of Digital Transformation and became their sole career partners in educational directions.

We focused on the social educational sector, offering free courses and helping young IT talents understand career basics, like resume writing. This initiative met with high demand, and we realized it was our strength.

We also collaborated on an event with Unit.City, who have been very supportive, and participated in the Web Summit. These efforts helped us achieve our goal – to continue operating and attract hiring companies to our platform. The number of companies we work with is growing.

We’re soon launching a new version of the platform.

Regarding Reteam:

We resumed work in March last year and have continued since. Our special feature is that we don’t have a full-time team. Everyone who works with us operates on a bonus system, but our bonus is 30% of what we receive from the client – arguably the highest in the market. We aim to financially motivate our team.

What really aids our work are the relationships we’ve formed with our clients. It’s crucial to thoroughly understand a client’s business, its challenges and needs, and to keep abreast of its development.

An additional tip: always be available for your clients and assist them with even minor issues, even if it’s unrelated to your work (it’s an additional value). Offer advice, suggestions, support, help with hiring or business development. Even if it’s unpaid, this approach fosters trust and long-term relationships. Hence, such efforts are always worth the time.

Geography

Our client base is truly global. However, we prefer not to work with those who are not interested in collaborating with Ukrainians. This, perhaps, is our personal sore point.

There are no other limitations in our search; we look for candidates in various corners of the world. The key is to meet our clients’ requirements. For instance, if a client from Cyprus seeks someone willing to relocate, we actively search for such individuals. Of course, this excludes Russians – that’s a given.

Forecasts

In my opinion, we are entering a bustling business season, long-awaited by many. This is a crucial, intense period that demands our utmost effort. In discussions with major companies, I constantly hear about their plans to expand their workforce. Uklon, Nova Poshta, and all the banks, including Raiffeisen, UkrSib, and Crédit Agricole, are keen to develop their IT departments. They are on the hunt for IT talent, eager to nurture a Product Mindset and enhance their offerings.

My predictions are as follows:

• The market will actively grow and shift towards a product-centric approach. Ukraine is becoming more product-focused rather than service-oriented. Thus, supporting our startups to flourish, increasing the number of unicorns, is essential.
• New organizations are emerging, and USAID is actively funding various projects, so the startup ecosystem will also expand. Investors indicate a need for more startups to invest in. The current number is insufficient; a larger funnel is required to start focusing on quality.

The government, particularly Oleksandr Bornyakov from the Ministry of Digital Transformation, emphasizes the need to increase the number of startups in Ukraine. Currently, this number is critically low, especially compared to countries like Israel:

• We have about 50–100 startups per 1 million people.
• In Israel, if I’m not mistaken, it’s about 500 startups per 1 million people.

We must enhance our educational level to encourage people to initiate new projects and understand how to present them at various development stages.

• Regarding Military & Defence Tech, much has been said and more will be discussed. It’s evident that this sector will continue to develop.

Advice for Staying Resilient

• First, learn to be critical. Life is inherently unfair, and this is magnified during wartime. Develop resilience. No goal is easily achieved, especially now.
• Never give up, don’t wallow in self-pity or look for excuses. It’s easy to get lost in self-pity. Instead, gather your strength and move forward.
• Unite. Only together can we achieve great things. Many organizations are ready to partner.
• Don’t get discouraged by the first, tenth, or thirtieth rejection. Success might be just around the corner.
• Surround yourself with experts and those open to criticism. In my early business days, I cherished positive feedback, but I later realized that constructive criticism makes me stronger and improves my product. Praise alone won’t enhance your product.
• And finally, always keep learning. Education is a necessity.

ReTech

Nikolay Luchkin, CTO

Our focus is on hunting for complex engineering positions. We operate across Ukraine, Latin American countries, and Europe. Until February 2022, the market was in a state of colossal hype. We adapted successfully to this situation, reformed our internal structure, and actively recruited new team members.

Four new employees joined us on a Monday, and by Thursday, missiles were falling on Ukrainian territory. One of the teammates started her job on the first day of the war. Our main goal then was to maintain rationality and clarity of thought.

Contrary to expectations, the war didn’t alter our plans; it made them even more relevant for expanding into other markets. If pre-war, vacancies outside Ukraine constituted only a third, post-war, the situation shifted to the opposite.

Our key crisis management tools are intensified work with existing clients and boosting sales. Regular clients returned, and new ones came through recommendations. However, without our focus on enhancing sales and expanding markets, the situation could have been much more complicated.

We realized that the biggest limitations for business are not external but in the minds of its leaders. We sometimes smile, recalling why we postponed certain activities earlier.

We couldn’t avoid layoffs, though we managed to retain most of the team for almost a year.

Ukrainian recruiting and the tech sector are integral parts of the global IT market, hence directly correlated. The main problems in Ukrainian IT arose not only because of the war but also following the activation of a global crisis in the fall of 2022. This forced many companies to freeze hiring and even conduct mass layoffs.

Despite all this, we look optimistically towards the future. The crisis is undoubtedly ending, and we anticipate a new growth phase in the next 1–2 years.

As for Ukrainian recruiting companies, losses are unfortunately inevitable. But those who survive will become more mature, systematic, and efficient.

Skillers

Julia Tupchiy, Founder & Managing Partner

In 2021, our agency achieved financial success, matching the performance of many of our market peers. Throughout our operations, we experienced a dynamic environment with numerous job openings, even occasionally turning away clients. This approach enabled us to create a financial safety cushion for 2022.

As 2022 began and war broke out, we quickly mobilized and continued our operations without a day’s pause. Financially, it was a tough period, but not a failure – we achieved 70% of our planned targets. Considering the circumstances, this was a commendable outcome.

Our decade-long membership in the international recruiting association NPA, comprising around 500-600 agencies worldwide, was invaluable. This global network allowed us to recruit talent across various regions, applying our expertise where needed.

Previously, we often relied on this association for specialist recruitment in challenging areas like China, Asia, or Africa.

In 2022, we conducted numerous experiments to understand their potential and value to our company. Additionally, our payroll outsourcing services contributed to stabilizing our cash flow.

Team

We avoided layoffs, striving to maintain financial stability, although some team members transitioned to other companies or left the country seeking greater stability. We also decided to part ways with our PR manager, as promoting our services domestically seemed futile at the time.

Work and Clients

82% of our clients were returning customers, with 18% new. Interestingly, 81% of vacancies were filled by Ukrainian candidates, highlighting the high demand for Ukrainian remote specialists by international clients.

By late summer 2022, we felt the tech sector crisis, compounded by global stagnation, leading to significant layoffs. Nevertheless, we stayed afloat thanks to NPA and the delayed impact of our 2021 lead generation and client negotiations.

Initiatives for Growth

Throughout 2022, we embarked on various pilot projects, expanding into new markets and regions following our clients. These ventures were both beneficial and interesting, but not without risks. For instance, when a client entered a new market with our help but ultimately abandoned the hiring process due to local complexities in B2B contract or employee formalities.

In 2023, the influx of new clients slowed down. Our work primarily involved complex vacancies in the stable American market, where higher fees compensated for longer closure times. Additionally, client-related risks were minimal, thanks to our partners’ prior experiences with them.

What we do:

• Our approach is more focused on operational management rather than long-term strategic planning.
• We are revitalizing and fine-tuning our inbound sales processes and experimenting.
• The company’s management is also engaged in recruitment, especially in C-Level executive search, which requires exceptional skills and attracts more opportunities. These vacancies often have no geographical limits, sometimes requiring unique expertise in specific fields.
• We’ve also broadened our specialization beyond IT, encompassing marketing, business development, finance, and exploring related niches like fintech.

Geography of the Search

Our search geography is not limited. Thanks to NPA, we can engage agencies from various countries where it would be challenging to operate independently (such as China, Korea, and Japan). In 2022, we worked in over 10 locations (Asia and Africa were very targeted, merely as experiments), but in terms of effectiveness, closures mainly came through America, Poland, and Germany. It’s too early to summarize 2023, but America is clearly leading so far.

Forecasts

I wouldn’t separate Ukrainian recruiting from the global context, as many agencies strive to export services and operate on the global market, which is currently experiencing stagnation.

Additionally, there’s the issue of AI, which helps automate recruiting. This is a concern for many. We don’t fully understand which aspects of recruiters’ work AI can take over.

Regarding Ukrainian Recruiting:

• • It’s uncertain how quickly the IT business will recover (unlikely to return to its previous level).
  • On the other hand, there’s a clear deficit of effective specialists (e.g., those performing business-oriented functions – sales managers, financiers).
  • In professions dominated by women, there’s also a shortage, as many have left the country.

• As the country rebuilds and reforms, and Western investments flow in, there will be a shortage of executive professionals to tackle these complex tasks.

Recommendations

• Be attentive to changes and study analytics.
• Don’t wait for something special; make small but forward steps.
• Inbound sales work. It’s complex, time-consuming, and its effectiveness is hard to evaluate, but it’s worth pursuing.
• Find your niche.
• Understand that the era of automatic, mechanical recruiting, which was essentially just sourcing, has passed. AI will soon handle such primitive tasks, not humans.
• Unite and work together instead of competing. Working alone is challenging now. Attempts to create recruiting associations and communities in Ukraine have been made, and their importance has only grown today. The value of a professional network is especially helpful in times of crisis.

Talando

Vlada Liashchenko, CEO & Managing Partner

2021 was the most lucrative year in our company’s history, but in 2022, our revenues dipped by no less than a third. Since 2014, we’ve been focusing on roles where clients are willing to hire the best talent from anywhere in the world. In 2018, we shifted our emphasis to C-level positions, mainly attracting clients from the USA, UK, Canada, EU, Vietnam, and Singapore. Our niche became the relocation of ‘white-collar‘ workers in IT and Country Managers, a sector where clients often came to us through word-of-mouth. Our sales department was only established at the end of 2020. We worked with rates of 20-30%, primarily handling positions in R&D projects, targeting candidates from FAANG and relying heavily on networking.

Entering the war in 2022, we had the experience of filling international positions and a company ‘lifeline’ for eight months. This reserve was quickly expended in March to evacuate our employees and their families, many of whom went to defend Kyiv from the first days of the conflict. Our diversified team across regions helped us maintain operations, with staff from the USA, Georgia, and Germany keeping up communication and operational activities while the Ukrainian team physically relocated. Each team member, having moved, continued working remotely, benefiting from our founders’ vision of a globally mobile office with ongoing projects.

Regarding our team

We decided against reducing our recruiting and sourcing teams, valuing their expertise in finding top talents worldwide over short-term financial metrics. To compensate for their underutilization, we engaged in market research and consulting projects.

After the war began, out of 30 employees, 21 relocated abroad with their families, and we shifted to a mode of saving each one. Currently, we employ 3 people in the UK, 4 in the EU, and have opened 4 companies, increasing our operational costs and teaching us to navigate various jurisdictions. This expansion has also opened up opportunities, such as eligibility for specific tenders in the UK, which require a registered British company.

From February to October 2022, 8 team members were nearly full-time engaged in various volunteer activities. The business managed to sustain this load, and most are now returning to their regular routines, continuing to recruit key employees for funds and assembling technical teams for embedded projects, often on a volunteer basis.

What really helps

Our growth has been facilitated by the opportunities created from part of our team moving abroad. We leverage face-to-face meetings, attendance at industry events, and coffee with long-standing candidate contacts. Networking and relocation consultations have been instrumental in developing goodwill; word-of-mouth referrals from satisfied clients have become a significant source of new business inquiries. We also receive more requests for our market insights and talent locations. Access to local exclusive clubs has enabled us to charge up to 500 pounds per hour for consulting services.

Interestingly, our active involvement in volunteer activities has often led to recommendations of potential clients. Our donors and logistics partners in these efforts have, after six months to a year, returned with recruitment inquiries, having seen our social media posts about our recruitment activities alongside our humanitarian efforts. This unexpected bonus has brought us new contracts.

We are developing additional services, such as extensive labor market research reports exceeding 70 pages of insights, annual subscriptions, and consultations for internal process development in companies (including other recruitment agencies). Our bundled subscription-based services have been particularly successful. We also have 4 people on payroll service, but see greater potential in this area.

Our team is also engaged in training AI models to help automate recruiting and sourcing processes, a new revenue stream we started tapping into in 2023 as a team of professional testers and case generators.

Currently, our financial safety net is minimal, but over the years, we have learned to navigate cash flow gaps. We are not afraid to work with borrowed funds or overdrafts and have a network of angel investors ready to support us, knowing we reinvest in additional services like market research or new recruitment products, like Wandify.io. This financial strategy has not impacted our obligations to staff or led to reductions.

Geography

Many of our current clients are from Portugal but have roots in Israel, France, and Central Europe. The American market is almost inactive, although it used to be our main client base. We are actively negotiating with clients from India and Indonesia regarding the relocation of ‘white-collar’ workers to their IT outsourcing and product companies. We plan to revive projects in Africa for the relocation of C-level specialists worldwide, which were paused in 2022-2023 due to the global crisis.

Forecasts

Non-tech recruitment in Ukraine is expected to perform better than IT recruiting in the near term, as the IT sector faces a talent shortage. However, global demand for IT specialists is expected to reawaken by the fall of 2023, and the need for agencies and recruitment services will be significant. Countries in the Middle East and East Asia are particularly active and quick in deciding to engage contractors. Companies are already budgeting for recruitment, and plans could change rapidly due to geopolitical instability.

Tips

Our advice is to collaborate with others and openly seek help when resources or expertise are lacking. Learn from the experiences of peers working globally and adopt best practices. We build IT Recruitment Entrepreneurs Club, a community of agencies with open, healthy relationships and grow together, strengthening each other.

For small recruitment firms without staff proficient in English (at least at the B2 level) and preferably without a strong accent, we see opportunities in non-IT recruitment, where there is a lack of agencies. 

We also launched Talando branch focusing on non-IT mid and senior-level talent searches, and see enormous potential in relocating foreign labor to Ukraine.

TalentIn

Vadym Donchenko, CEO

In 2021, we experienced a significant influx of contracts. Regarding new clients, we added about three to five weekly, averaging up to 15 new clients per month. Numerous new inbound orders came in, yet we hardly took on any of them. The client payments were substantial, with rapid hiring decisions all geared towards fostering growth and expansion. This situation was likely mirrored across most companies.

Currently, we can’t complain about a lack of clients, thanks in part to our niche selection (discussed later). Our recruiters’ workload remains similar to that of 2021.

The year isn’t over, and it’s premature for summaries, but our revenue continues to rise. The only downturn was in the first six months following the full-scale invasion, mitigated by our financial safety net, after which we began to profit again.

Crisis Management

By February 2022, we had anticipated an invasion.

1. Our first step was to prepare a detailed action plan. It included specific steps, ensuring everyone in the team was informed and ready to act. This covered communications and relocation decisions. For example, we focused on team members without familial support, assisting them with relocation plans and financial aid. As the agency’s leader, I knew we had resources for unforeseen circumstances, including contingencies for non-functional bank cards, ensuring employee welfare. This approach helped us remain resilient despite challenges.
   What changed from our forecasts was our expectation that many would leave to protect their families. When the invasion began, half of our team decided to stay in their homeland.
2. A crucial aspect was supporting employees who chose to leave the city or Ukraine. We provided financial assistance to facilitate their comfortable resettlement.
3. During this time, we made no layoffs and didn’t even consider it. Salaries and bonuses remained unchanged, contributing to team retention. Those who left later did so mainly due to ineffectiveness. We supported our employees to the end, understanding their needs.

What Helps in Work

Reliable partners greatly assist us. When building our company strategy, our priority was our team. In any dispute, we sided with our team. Our second priority was our partners, always considering their interests and aiming for long-term relationships. We prioritized maintaining relationships over one-time profits, which our partners appreciate and value.

This stance has been key in preserving our team and partners, especially during crises.

Clients understand that our goal isn’t just to fill a position and part ways. Our aim is to bring someone who enhances their business. This approach, operational for four years now, is highly valued by our clients. Our three-year investment in values and processes has paid off, with our strong client relationships acting as a return on investment, especially in tough times.

Another aspect is our no upfront payment policy. Clients pay only upon successful candidate placement.

A distinct feature is our positioning as an IT recruiting agency specializing in business roles. While most agencies focus on hiring technical professionals, we concentrate on business roles (accounting for 65-70% of our vacancies) like product, marketing, financial, sales, design, etc. We excel in measuring, ranking, filtering, and conducting quality interviews.

This focus helped us adapt to market changes, especially during the war, when many companies stopped hiring high-salary programmers. Business professionals are always needed, as they generate revenue, leading many companies to actively recover and consider revenue-generation strategies, providing us with additional client sources.

Additionally, we’ve connected with several European partners (Spain, the Netherlands, etc.) and have successfully serviced them, hiring both in Ukraine and globally.

Tip: Focus not on profit, but on the value you bring to your partner through the hiring of a specific professional. Otherwise, it won’t be a long-term game.

Search and Work Geography

In 2021, 95% of our search was in Ukraine. The task was to process all of this, as there were many requests.

Now, the geography has changed – Europe, and North America.

Entering international markets is still an open question for us, and we are not yet very focused on it, but we plan to.

This involves a vast potential workload and very low conversion in “cold” contacts. Therefore, I see a better option for us – not to go into outbound sales, but to develop marketing, PR activities, and brand development, which will increase inbound sales.

Currently, 70-80% of our international clients come to us through recommendations from our current partners.

There’s another interesting local factor. I have a colleague working in Switzerland, and they tell me that local Swiss agencies aggressively sell and bring brochures to their office, one after another. Even though their commissions are 20+%.

Forecasts

I see many new young agencies emerging in the market. I hear both positive and negative reviews about them. I believe that new and strong players will appear. In my opinion, no one will abandon recruitment agencies, so they will remain relevant for a long time. I don’t think the recruitment market will change radically in the near future.

It’s good that new market players often choose to be boutique, specializing in something specific.

Advice

My main advice for business resilience: if your focus is on creating value for the partner, everything will go as it should.

For an agency leader, it’s important to have a strategic approach. As in any business, you need to plan and consider several scenarios. Recruitment seems to be a rather unstable field, so I advise regularly calculating several possible scenarios for the next 3–6 months and adjusting your actions as needed.

About Team Activities

Most of our team is historically from Dnipro. Although some have moved (some of the team are in Georgia, some in Poland), they return periodically. Gathering everyone at once is not an easy task. But we conduct various events, and this greatly helps the team morale.

Values Value and InGame Job

Tetiana Loktionova, Founder of Values Value, Co-Founder of InGame Job

Since 2017, we have been operating without external investments. I was the sole founder, and we quickly became profitable, with a focus on game development.

Our team grew to nearly 30 employees. However, scaling while maintaining high service levels proved challenging. In 2021, our staff reduced to about 15, well before the onset of the full-scale invasion. Despite this, 2021 was our most successful year, a trend shared by many.

In 2022, we downsized further. Some employees couldn’t endure an extended probation period due to the war’s onset; others left for volunteer work or more stable jobs not reliant on bonus income. 

Ultimately, we managed to achieve a net positive by the end of the year, despite having lost a portion of the market. This was largely due to the fact that in Ukraine, 70% of game development companies had certain connections with Russia or Belarus. We decided to cease collaborations with most of these companies, which impacted our market share. Nonetheless, we successfully navigated these challenges to close the year profitably.

Hiring in purely Ukrainian companies decreased, and foreign firms in Europe and Asia either disbanded their Ukrainian teams or relocated them to safer countries.

We had to enter new markets, significantly impacting our earnings. To survive, we adopted cold and proactive sales techniques.

In 2021, we raised our prices almost every six months due to a high order volume. We could only take on one out of every four companies that approached us, while regular clients booked recruiting slots six months in advance.

We’re now actively engaged in business development and reminding our customers of our presence. However, most new clients still come through recommendations or existing awareness.

Crisis Management

Each vacancy is a special project for which our entire team develops strategies and solutions, leveraging our network. We’ve also introduced additional products within our recruiting service. We’re consulting current clients and developing a salary analytics division, but still mainly rely on long-standing, Ukrainian clients.

Before the full-scale war, 10% of our clients were foreign (e.g., recruiting Europeans for Europe or global recruiting for the Asian market). This has now increased to 30%. This shift is not only due to the war but also the slowing growth and investment in the game development sector. Hiring in European companies has noticeably decreased, with over 6,000 specialists laid off from European and American companies in 1.5 years, limiting our international market entry.

We know of two British agencies focused on game development that have closed. Many companies are struggling. Our colleagues, leaders in Central and Eastern Europe, and Poland tried to help us with leads at the war’s start, but they too are now trying to survive and adapt to market changes by working with outsourcing, Web3 projects, and startups with non-core investors.

Additional Services

I’m a co-founder of the InGame Job portal. The situation there is noticeably better, though it too went through a difficult period. In 2022, we actively tried to enter the European market. An investment fund, previously agreed upon for financing, withdrew its offer with the invasion’s start, putting us in the red. However, we’re currently operating profitably.

I’m now focusing more on consulting, not just for additional income, but because I have more free time after maternity leave. Importantly, it helps build strong relationships with potential clients.

Key Business Approach

• It’s crucial to build relationships with clients.
• Despite difficulties, we shouldn’t reduce marketing activities or stop investing in the brand or speaking at industry conferences.

Our company now has five managing partners, almost all of whom regularly speak online and offline. This not only strengthens the brand but also saves on expensive tickets.

Geographical Expansion

We’ve put considerable effort into entering the MENA market, planning cooperation with Saudi Arabia (internships, conferences, exhibitions, recruiting partnership). However, this is on hold. If Saudi Arabia supports Palestine in the Israel-Palestine conflict, we won’t cooperate, and neither will Ukrainian nor European candidates, especially if relocation is required.

We’re expanding our candidate search geography. For instance, we considered relocating a specialist to Spain who had previously moved from India to the USA.

We haven’t systematically entered the US market. American companies are interested in working with Europeans remotely as individual entrepreneurs.

Predictions

My forecasts for recruiting in the game development industry were more optimistic. However, even against the backdrop of mass layoffs, we see that those who couldn’t fill positions without recruiters’ help still haven’t learned to do so. Currently, there’s an increase in responses to job listings, but top professionals are still primarily hired through direct search and headhunting. Therefore, as recruiters, we will continue to have our market.

Here, generally, there are two options: either be an ultra-competent expert or significantly undercut prices. However, in my opinion, it would be more appropriate to transition into becoming employed as part of a team, preserving the relationships we have built over the years, rather than undercutting prices.

Unfortunately, it’s going to get even harder because the number of non-Ukrainian companies willing to collaborate with Ukrainians is decreasing. Even the most patriotic Ukrainian companies are seeking more cooperation with those who have moved abroad.

Advice

It’s essential to always believe in better outcomes, but not to focus solely on tactics. For example, if a conflict in Israel hinders our strategy to expand into the MENA region, we must still continue to explore new markets and build relationships with representatives from different regions. Diversification is crucial.

It’s also extremely important to invest in building each team member’s personal brand, invest in team development and training, and continuously improve the quality of our services.

VeryBusy Recruiting

Yuliya Keskin, CEO & Founder

In 2021, we handled 65 job openings. Despite a low offer acceptance rate of 51%, the market conditions were favorable, allowing us to thrive financially. Our team was small, comprising only 8 people.

The following year, we managed just 39 vacancies. Our longstanding clients were our saviors in 2022, as we only acquired 2 new clients. Our focus was mainly on fulfilling existing client orders, with little effort towards active sales. Typically, our clients were large companies with whom we had long-term relationships. Though we considered boosting our active sales, our attention remained on filling vacancies. We worked with 12 companies in 2022, compared to 11 in the previous year.

In 2022, our earnings dropped by 20% from the previous year, while our overall expenses increased by 27% due to higher direct costs. Nonetheless, we maintained our employees’ salaries, even raising them for those who deserved increases. We made no cuts, but did let go of two employees due to poor performance.

We implemented a bench policy this year. Workloads were significantly lower compared to last year. 2023 has been a real challenge for us. Despite initial difficulties, we began to pick up pace by the end of May 2022, leading to a very busy summer. However, we’ve consistently had low workloads throughout 2023, making the bench policy extremely beneficial. Clear agreements with the team ensure transparency and preparedness for any scenario, simplifying our workflow.

Current State of Business

Currently, our client base spans Ukraine, Estonia, America, and Germany, with our recruitment markets in Ukraine, LATAM (Brazil, Mexico, Colombia), the Middle East (UAE, Pakistan, Egypt, Turkey), and Poland. Our hiring markets include Ukraine, Latvia, Brazil, and Colombia.

2023 remains challenging, with our survival largely dependent on longstanding clients. By late 2022, we realized the need for change and began exploring active sales, particularly lead generation, an area we were initially unfamiliar with.

While results have been underwhelming, we’ve found that building relationships online is challenging; offline meetings were more effective. Online meetings may be somewhat effective for securing short-term or less profitable projects.

All in all, we are now focusing on the Ukrainian market.

In 2022, we ventured into international markets, which proved difficult and problematic. We made specific hires in Brazil and Latvia, but eventually recognized our strength in the Ukrainian market. However, we’ve noticed companies seeking specialists outside Ukraine, as they want to reduce risks by diversifying their teams.

Our people adapted to energy-independent work last year, but not all clients understand this. The further a client is from Ukraine, the more they perceive the situation as dire, necessitating explanatory efforts on our part. While clients don’t explicitly state a preference for hiring women (to avoid the additional risk of male mobilization), the candidate pipeline and structure have naturally evolved in response to our reality.

We’ve also observed that the narrative of “business picking up in the fall” is no longer effective. Fall has arrived, but we see no significant changes.

Indeed, we are making the right moves towards growth, such as lead generation and hiring a marketer, but I can’t help thinking that we should have started these initiatives two years ago. It would have made things easier.

New Approaches

We have begun diversifying our services and this year successfully implemented RPO (Recruitment Process Outsourcing). I believe in the RPO concept and aspire to become a leader in this field in Ukraine. I truly appreciate this model. We realized a project with one of our regular clients whose story involved rebuilding their HR system and recruiting functions from scratch, replacing existing employees with new hires. This transformation left them with vacancies in key positions. At one point, when the search became particularly challenging, and even the company’s COO was personally involved and exhausted from the process, we offered our assistance, which they readily accepted.

However, promoting this model in the Ukrainian market is challenging, as businesses are accustomed to minimal initial risk when starting with an agency. A commission-based hiring model means the agency only gets paid upon successful recruitment. With the RPO model, both the company and the recruitment agency share roughly equal responsibility from the outset. This can be psychologically challenging for companies, as it involves an upfront investment (a fixed price payment), rather than payment upon hiring. But the results are worth it, especially when a business understands the need for rapid scaling and hiring a large number of people initially, followed by a plan for steady recruitment. Hence, I am now a proponent of RPO.

Forecasts

Predicting market trends is always a complex task, and frankly, I don’t consider myself an expert. However, I know that IT companies heavily rely on infrastructure. They need electricity for operations and stability for their employees. Obviously, they require the capability to work reliably without sudden disruptions, including shielding employees from mobilization.

For companies, maintaining contact with clients is crucial: either they visit Ukraine, or local specialists travel to them. This is currently a problem in Ukraine.

Looking back at 2022, I remember that IT service exports experienced a decline. I read an interview with a representative from one of the top five IT companies, who noted that by January 2023, exports had fallen by 30%.

Predicting the impact of the war and the global situation is difficult. Once, while talking to a friend from Israel, he advised me to brace for “7 years” of living in these conditions. This initially shocked me, like a bucket of ice water, but I eventually realized that we need to live and work within the reality that surrounds us.

I can’t precisely predict the future of our agency or the country’s situation, but we will continue to work and try to adapt to whatever circumstances arise.

Advice

For myself, I’ve chosen an approach that has helped in life and business: set a boundary – a point until which I will fight, invest my own funds, and beyond which I will decide that the struggle no longer makes sense. This makes working much easier. It’s also important to think not only about oneself but also about the team.

As long as I believe in our success and keep an eye on financial indicators, I will keep fighting. But I also understand that if things don’t work out, I’ll find another way. Previously, the idea of working for someone else was painful for me. But now, seeing my friends find inspiration in new challenges after making such a move is both inspiring and comforting.

We are all undergoing a reevaluation of values. Previously, we were concerned about burnout, but now we are rethinking our lives, seeing other processes around us. I’ve learned to be grateful for what I have. I’m extremely thankful to my team for continuing to work with me. Sometimes I wonder why they are still here and conclude that I must be doing something right in life if they are still with me.

VP Team

Viktoriia Prydatko, Founder of the VP Team and highfive.expert

Maryna Khomich, CEO & Co-Partner in VP Team

In 2022, our firm achieved its best performance to date, building on the momentum from clients we brought on board in 2021. We doubled our revenue and the number of vacancies filled. At the end of 2021, we more than doubled our recruiting team.

From spring 2022, order cancellations began. Some major Ukrainian clients put hiring on hold, yet others continued to seek our services. The drop in team workload only became noticeable in the third and fourth quarters.

However, we chose not to downsize. On the contrary, we expanded our staff, adding five new team members, including recruiters and a marketing specialist.

Crisis Management and Strengthening Our Position

We significantly bolstered our market positioning through enhanced social media marketing and the creation of marketing materials, shared insights with peers from various industries, conducted numerous user interviews with clients, and launched several digital projects. We published our own research and adjusted salary reviews, and opened legal entities and accounts outside Ukraine, without lowering our service fees.

What’s been most effective

Media exposure and marketing, without a doubt, as well as enduring client relationships and their referrals. Our flexibility in service provision, such as offering new and segmented services, has been crucial. We’ve expanded hiring beyond IT and launched educational programs, striving to do everything with intelligence and strategy.

Memorable highlights

This includes providing pro bono recruitment for a military school, which uplifted our team’s morale, and creating our own products: Highfive.expert, the “Common Fund,” Pipe Talks, two salary reviews coupled with extensive salary analytics, and research on test assignments. Our “Fight and Seek” recruitment course has been met with enthusiasm, and we continue to offer tailored training.

Current Growth Initiatives

In terms of development, we’re investing time and finances into the growth and mental wellbeing of our team, which helps retain them and maintain or even boost productivity. We’re involving our team more in marketing and PR, which is raising their level of awareness. We’ve hired a sales manager and are now actively focusing on sales—a shift in strategy since before 2023.

Our client and candidate geography has shifted, bringing in purely European clients unrelated to Ukraine. We’ve successfully placed D-level positions in the USA and made hires in Europe and LATAM.

Forecasting the near future

I can predict that hiring veterans and integrating them into businesses will be a prominent theme.

My advice for standing firm

Continue to work with dedication regardless of the circumstances. Don’t slow down; if possible, accelerate. Venture into new markets or segments. Exchange insights with peers and regularly gather feedback from clients to understand their needs.

Conclusion

After engaging with some of Ukraine’s most renowned recruiting firms, we noticed a blend of striking similarities and differences. Nearly all experienced a similar trend at the onset of the war — their numbers halved. However, the path out of crisis was uniquely their own. While some doubled down on working with existing clients, others ramped up their sales efforts, and yet others ventured into new markets and opportunities.

For some, a distinct niche was their salvation; for others, it was diversifying their fields of operation. Some founders even transitioned to employee roles and have not regretted the change.

Without exception, the pursuit of quick profits saved no company. Only those who focused on long-term partnerships and maintaining a solid reputation eventually reaped rewards.

Almost without exception, teams shrank, though often it was not downsizing but rather the natural ebb and flow of the workforce that took its toll.

Sentiments varied widely — some anticipated a decline, others growth, and still others saw a balanced “golden mean” in the dynamics. But each of the survivors and thrivers understood that people and unity were their most valuable assets. Everything else would follow in time.

It’s heartening to witness increased activity and interaction between companies. Sharing knowledge and experiences is bolstering Ukraine’s position in the global market.

A prime example of such unity is the creation of the IT Recruitment Entrepreneurs Club — a recruiting community for those committed to advancing quality Ukrainian recruitment. The community’s core ethos centers on high standards and a culture of client service, both within agencies and in the wider industry, with a commitment to fulfilling obligations and fostering goodwill towards agencies as employers.

The goal is to establish a cohesive ecosystem that ensures:

• The joint creation and implementation of high-quality work standards.
• The development of a system of public accountability and transparency, prioritizing the reinforcement of Ukrainian recruiting’s reputation.
• The exchange of insights and valuable resources.
• The prevention of collaborations with Russia.
• Prompt reporting of any breaches in business ethics and other critically important areas.

The post Inside Ukrainian IT Recruitment: 20 Stories, Strategies, and Forecasts for 2024-2025 appeared first on Recruitment Agencies.

The market is flooded with recruiters willing to fill positions for a commission equal to or less than a single salary. This trend has steadily grown over the past 5–7 years, driven by multiple factors. The illusion of receiving nearly identical services for less cost tends to lure businesses into this seemingly lucrative hiring arrangement. However, the real catch unveils itself in the long run. Sometimes, the approach of closing vacancies at any cost and by any means works, but it harbors repercussions.

Why do some recruiters come cheap?

• The answer lies in the realm of low-skilled labor – recruiters who receive just a fraction of the earnings or a minimum wage, with almost no proper training or understanding of the IT sector. Companies incur minimal expenses on such personnel who work for bare minimum, thus, maintaining a low cost of operation.
• The lack of investment in process automation and performance tracking results in low recruitment efficiency. Perceived by company managers, recruiting 5–10 individuals remotely on a trial basis to fill a vacancy seems more economical than spending $50-$300 on specialized software that can, for example, track spam messaging to the same candidates from different recruiters.
• Recruiters work on 100–500 vacancies simultaneously, and their resources are spread thin across several clients at the same time. In reality, many IT Recruitment Entrepreneurs find it easier to take on five clients who are ready to pay cheaply at one salary per candidate and assign the vacancies to a single recruiter, rather than negotiate a reasonable payment rate with one client and deliver quality work with the team of recruiters necessary for successful placement.
• Agency heads dread the possibility of having fewer clients tomorrow, unable to cover potential cash flow gaps, hence they opt to work with even the cheaper, albeit paying clients today than face a cash deficit or lay off underutilized staff. This tactic leads to price undercutting in the market.
• Agency leaders or sales managers doubt the feasibility of selling services at 16-25% and fear losing clients due to fierce competition and the presence of cheaper alternatives.

You might encounter those willing to settle for a low fee, and if luck is on your side, you might even receive the coveted resume. However, the chances are high that your cost-saving measures or budget constraints on recruitment might land you an unwelcome “gift” – a tarnished goodwill.

The IT community is closely knit, and information, especially negative, travels at lightning speed. Recruiters and company representatives, who are usually the first point of contact with candidates, often become the topic of discussion in various forums and chat groups where IT professionals exchange information.

In scenarios of “rapid” recruitment and engagement with low-skilled recruiters or IT Recruitment Entrepreneurs lacking a ‘quality’ criterion in training and tracking the performance of recruiters, the aftermath is usually grim. The initial contact often comes with overly generalized company information, mistakes in the tech stack, or lack of details about the working conditions, not to mention the unprofessional messages and spam emails with errors in names and sometimes rude communication.

The lesser known a company is before this contact and the lesser it spends on employer branding, the more resources and efforts are required in personnel selection. Absence of investment in the former and budget minimization in the latter leads to a recruitment process that’s neither effective nor swift as anticipated.

Often, companies are willing to sacrifice time in attempts to find the perfect candidates with inexpensive contractors, ready to face reputational risks which eventually translate to additional budget for explaining to the market who they really are and where the communication breakdown occurred.

Well, this is also a business and personnel selection approach, and for such clients, we gladly offer employer branding services. Quite often, after hearing complaints about previous agencies and recruitment inefficiency over several years, companies need not the next contractor, but a service to communicate to the market the values and conditions the team and management convey, addressing the negativity formed among certain communities. This is especially noticeable for narrow-profile tech communities, for example, Magento, Ruby, Python devs, etc.

Conclusion

The lack of company recognition in the IT talent market coupled with budget constraints in recruitment could extend the time required to hire qualified professionals both initially and in the long run. The grave mistakes of low-skilled recruiters demand extra budget to rectify the errors, mend the damaged reputation, and rebuild employer branding from scratch.

The post The Hidden Price Tag of Low-Cost IT Recruitment appeared first on Recruitment Agencies.

Q1: Alongside your opening, there might be similar positions available in other companies. It’s essential to know why should a developer want to transition into your company, and how can you ‘sell’ your project?

Usually, a company provides a job and company description, but diving deeper into specific work nuances and the team dynamics helps IT Recruitment Entrepreneurs in crafting a message that highlights the unique selling points separating your company from the rest. It’s about rephrasing and emphasizing the key points that set you apart from a pool of other employers. Occasionally, a client may struggle with this, which could be a chance for deeper engagement to unearth overlooked strengths, or an opportunity to provide honest feedback if the offer isn’t competitive.

Furthermore, if the offer is entirely non-competitive and does not stand out from the crowd, it’s fair to tell the client upfront that you are not ready to engage in full-scale recruitment. You might recommend candidates who are actively seeking suitable positions, or suggest that they revisit their recruitment policy, budget, etc. If the client doesn’t understand how to attract people from the market to their organization, it will be even more challenging for you to do so. Therefore, it’s important to avoid wasting time – both yours and the client’s.

Q2: What Problem Does This Specialist Solve?

Asking about the specific problem this position will solve gives a clearer insight into the actual tasks and expectations from the candidate, beyond just the generic requirements. It also helps in gauging how well the client understands the role they are hiring for.

If responses are vague, it’s a good practice to ask who else in the team could provide more detailed information, and possibly arrange a follow-up call. Your chances of successfully filling the position increase if you have access to this person during the recruitment process.

Q3: What specific tasks will be assigned during the probationary period, and how will you determine that the candidate has passed it? Are there tasks set in a 30-60-90 format?

This question aids in understanding the level of process maturity within the company. Is there a “buddy” assigned to accompany the candidate, and does the client (project manager and others) have a clear understanding of what exactly is required from the candidate? In instances where such processes are lacking, the likelihood of needing to seek a replacement for the candidate increases. It might be worthwhile to discuss precautionary measures with the client, although this veers into consultancy territory.

Frequently, especially in the initial months of direct engagement between developers and clients, communication breakdowns, misunderstandings, and dissatisfaction may arise. However, by intervening promptly and taking necessary measures, such situations can be preempted, preventing a scenario where, 2–3 months down the line, the client conveys that the partnership hasn’t been fruitful.

Q4: Have you already worked with agencies, which ones and what was good or not so good about those experiences?

Responding to this question allows IT Recruitment Entrepreneurs to understand who has been attempting to fill the vacancies and for how long. It’s the same vacancies that were handled by others, are there any stop-lists, how does the client relate to previous agencies and why. How does the client justify their responses?

In the event you are aware that the company, which was engaged before you, adheres to high standards of quality and comprises a team of experienced recruiters, it would be prudent in specific cases to seek feedback about the client from these agencies to attain a more comprehensive understanding of the client.

Additionally, if before approaching you, the client’s previous contractors had been attempting to fill the positions for a considerable duration, conveying inaccurate messages to the market, or merely sending over batches of resumes without notifying about the job details, there might be rare instances where the reputation might be tarnished to such an extent that now what the company requires is consultation on forming employer branding rather than IT Recruitment Entrepreneurs’ assistance.

Otherwise, your team will be investing a lot of time rectifying mistakes that were not committed by you. Conducting a bit of preliminary research will enable you to save a significant amount of time and effort in the future.

Conclusion

Being meticulous and probing during your initial interactions with the client might demand more time initially, but it will help in painting a clearer picture of the client and deciding whether the vacancy aligns with your project for the months ahead. Always provide prompt feedback if you notice any red flags in the client’s responses to avoid false hopes and save time. Explain your inquiries clearly if you notice any confusion or direct questions about why you need certain information. Remember, by declining a mismatched client, you free up space to focus on those who value your approach, ensuring a more enjoyable working experience and, in the long run, fewer headaches after 2-3 months of working with seemingly good clients. Your diligence now will translate into more placements and lesser hitches down the road.

The post 4 Unmissable Questions To Ensure A Productive Intake Call appeared first on Recruitment Agencies.

Sharing my insights and advice, derived from daily practices as a managing partner with 10+ years of experience.

The Core Missions of Recruiting Agencies aka IT Recruitment Entrepreneurs

• Foster Client Business Growth:
  It sounds way too grandiose, but I’ll elaborate below.
• Save Clients’ Time:
  By recruiting the right talent within desired timelines.

• Provide Objective and Current Information:
  Regarding the job market, candidates, and competitors.

• Promotion and Accurate Representation of Client Companies:
  To the jobseeker market.

1. Foster Client Business Growth

Often, novice recruiters or those not oriented toward long-term relationships acquire a vacancy and immediately strive to fill it at all costs. However, as they progress, it becomes clear that the stated requirements do not match the actual needs of the team or what the market can provide. Different participants in the recruitment process may have varying perspectives on the ideal candidate; there might already be personnel within the organization who could fill the vacancy through internal rotation.

If the client doesn’t allow a deeper dive into the business beyond merely providing the job description, there’s a high probability that the task at hand might not have been articulated correctly, or the company might be looking for the wrong individual. When you immerse yourself and understand the business as if it were your own, sometimes, in conjunction with the client, you may come to a smart decision.

For instance, instead of searching for a fantastic mid-level candidate with an average salary for a year, it might be quicker to train a confident junior or even two. Raising a loyal colleague who has grown within the team to a higher position could also be an option, and then searching for someone to assist them at a lower level, or realizing that such a person is not needed at all.

From a recruiter’s perspective, or let’s say, from the standpoint of someone focused on earning, these decisions, alas, deprive one of substantial profits in the short term. In modern realities, not everyone is ready to pay for HR consulting, and the ability to clearly and timely communicate that such work merits the expense is an art in itself.

At the same time, the cost cannot be so high that it creates cash flow gaps for the business you are consulting. This is where the magic begins. If you manage to find the golden formula where the client’s business is willing to pay for your services, your tips contribute to the client’s business growth, and you don’t go into the red consulting and researching round the clock, you’ll achieve what you were striving for.

You’ll enter into exclusive, fruitful relationships and become a true bridge between the job market and the company’s personnel. Plus, you’ll add another success story to your portfolio.

2. Saving your clients’ time will become achievable if you:

Rigorously Select Your Clients from the Get-go: As IT Recruitment Entrepreneurs, it’s crucial to identify who your client is and who isn’t. Don’t accept conditions that are unacceptable to you from the outset, and don’t approach a job vacancy with a mindset of ‘maybe we’ll close it’. Decide as a team whether to work with a client or not, who holds responsibility, and what you aim to gain from the collaboration with the particular client.
Hoarding clients ‘just in case’, coupled with non-systematic communication, leads to spreading yourselves thin, and the client might express dissatisfaction, expecting better results.

The more mature the company and the more experienced the staff, the easier it is to make a choice. However, without the luxury of choosing clients, there’s a risk of getting stuck in development due to team burnout and not achieving the expected profits.

Close Job Vacancies Efficiently: In an ideal world, you may close 1 out of 1 job vacancies, but in reality, it’s more likely to achieve 1 out of 3. To achieve this, you need to understand your client’s company and the decision-makers as well as possible, establish communication, and foster long-term relationships with them.

Predict which candidates might be needed at any given moment and work on networking in advance, preparing suitable candidates for various job vacancies.

For more efficient management of recruitment processes, consider automating the recruitment process and utilizing Applicant Tracking Systems (ATS) when needed.

As practice shows, clients may need to invest more time initially, however, with a competent, stable, and thoughtful service provider, these efforts should pay off tenfold in mutual understanding down the line.

For instance, discerning what ‘culture-fit’ means for your company, understanding the precise level of proficiency in RxJava and Kotlin required for a particular candidate for an Android position, and identifying exactly what this promising developer needs to improve on to potentially join the company in another six months.

3. Providing Objective and Up-to-Date Information Regarding the Job Market, Applicants, and Competitors

This is an integral part of a recruiter’s job, even if, in our culture, clients are not always ready to pay for it. However, it’s crucial to share information about who else is looking for similar candidates, under what conditions, how many recruitment stages they have, whom you decided not to hire, and who others have hired and for how much.

This often helps expand the client’s “worldview,” especially if they haven’t searched for staff in a long time, are looking for a different type of staff, or are relying on outdated or inaccurate data.

You possess a deep understanding of the market: working with candidates day in and day out, befriending fellow recruiters who share information about salary levels, staff turnover, and peculiar internal situations. Therefore, assist in decision-making, share what you know, propose conducting individual research, don’t hesitate to insist on your viewpoint.

There have been instances where, together with clients, decisions were made that we weren’t on the same page due to differences in market perceptions, and six months later, the client gave feedback that they had lost time by not listening.

Your attitude as professionals who care, having a confident, justified position, always helps in building a partnership.

4. Promotion and Conveying Accurate Information About the Company to the Job Seeker Market

This is an incredibly important task that requires immersion, time, and team professionalism. As of now, in my opinion, businesses have not fully realized how detrimental thoughtless spam massaging to every candidate with identical texts linking to a job description in a Google document can be, especially when there are numerous errors in the recipient’s name and in the text itself.

The inability to answer questions about where the company’s office is located and what will be required on the project is a problem. Here and now for the recruiter — this is just another vacancy and a “shot in the dark” at a thousand candidates. In the perspective of even a year — this can lead to permanently damaged relationships with developers, a distorted representation of your client in the market, and a nauseating reflex in candidates upon receiving another email, “Are you interested in the job? Click the link!” from your colleagues. 

Clients don’t always delve into how you are searching; many are focused on the result at any cost. Hence, they warn from the start that three agencies have already been engaged for finding an ordinary Senior Java developer. But there are no stop-lists; it’s impossible to communicate with the technical team — they have already spoken with three others, and it hasn’t yielded much.

Therefore, it’s important from the outset to discuss in detail and agree with the client on what exactly is important to convey about the company in the market, find out if there are other recruiters sourcing parallelly with you, and, if possible, ascertain who they are.

Working in tandem with other professionals is a viable approach. We have a list of companies we are ready to collaborate with, either concurrently or sequentially, on job vacancies. These firms invest resources in their staff, maintain communication hygiene, and overall, exhibit exemplary behavior in the market.

On the flip side, akin to the best representatives of IT Recruitment Entrepreneurs, each one of us probably has a list of those after whom working becomes an untenable task. With these ‘anti-heroes’, consulting invariably pivots towards how to amend the situation post their detrimental and subpar recruiting efforts.

Almost every candidate pays attention to who says what and how, or writes on behalf of companies. When you take on a vacancy, remember, with every mention of a client’s vacancy, especially with a direct link to their site, you automatically bear the responsibility for what the candidate learns and the ensuing goodwill or badwill about the company you’re promoting.

Conclusion

Undoubtedly, the low entry barrier, the opportunity for high earnings tied to USD or EUR, and the ability to work from anywhere in the world with some companies — all of these aspects are very appealing and make the role of a recruiter seem like it’s not rocket science. 

However, take a look around — a LinkedIn search for the keywords “Technical Recruiter” yields 481,000 (!) individuals. Let’s assume, out of this total number of IT Recruitment Entrepreneurs, 10% are fake profiles and 20% are inactive for a myriad of reasons. Yet, when you match their number against the count of clients and candidates, it’s not far from a disbalance.

Clients often get confused about whom to approach, and what constitutes adequate, effective recruitment, and where to find a reliable service provider. Moreover, with so much informational noise around, it becomes harder for each recruiter to reach out to clients.

If recruiting services remain a “black box” for clients, and you don’t invest in training your staff or delve into the business of those seeking your professional help, the industry risks significantly losing its reputation. Candidates will continue to retreat from social networks and ignore your requests, while companies will find it easier to hire personnel in Brazil, Poland, Indonesia, etc. And they will work with those who are aware and remember the recruitment goals discussed in this article.

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1. Not Paying The Bills

In different parts of the world, the reality of clients evading payment is a common menace. For a UK-based entity like Talando, the usual recourse might be to threaten legal action or share the unfavorable situation with potential candidates, or publicly to urge payment. 

However, without a major local office to enforce these measures, the threat may not hold as much weight. Previously, the mere mention of our UK-based head office and a call from our legal department would often resolve payment issues swiftly. Yet, as a global entity, we have found that this isn’t always the case.

The reluctance to dive into disputes and the treatment received as a self-employed individual providing services were among the key reasons for joining a systemic and global company. 

This scenario emphasizes the necessity for IT Recruitment Entrepreneurs to have a well-structured payment assurance system, ensuring that services rendered are duly compensated, irrespective of where the client is located.

2. Claiming A Candidate “Failed” The Probationary Period

In some instances, clients may claim that a candidate did not pass the probationary period and request the candidate to play along, while asking you to find a replacement for free. The only way to navigate such tricky waters is to build strong relationships with candidates so that such a scenario becomes improbable.

Staying in touch with those who supposedly failed the probationary period can provide insight; and if they continue to get paid by the client or start receiving payments again, then issue a new invoice to the client (if you provided the candidate). This added layer of communication can serve as a protective measure against fraudulent claims and ensure fair dealings.

3. Changing Requirements Midway or At The End

A very common situation that can only be prevented by a clause in the contract, either a fixed payment or a percentage of the minimum possible fee amount, which is paid in any case under such changes, which unfortunately, you couldn’t influence. It’s important to think through when exactly such a moment occurs and there’s a whole field for variations here.

We personally decided to take a penalty if we had provided candidates that we recommend as suitable for the vacancy before the requirements were changed.

4. Negotiating a Fixed Tiered Payment Structure Based on Candidate Experience Levels

The client hires a person for a higher position, claiming that your candidate is more junior and your fee, accordingly, is lower. There may also be a situation where a person is taken for another position (called differently) and a totally third amount is offered to you.

In such cases, it makes sense to describe in as much detail as possible who is considered a junior and who is a senior, and it’s easiest to tie it to the salary. If the candidate is paid a certain range, then it corresponds to a predetermined fee.

5. Non-payment Of The Amount Intended For Candidates Research

In this scenario, clients may withhold part of the payment meant for research, justifying this by claiming that the candidates provided were not up to par and thus, cannot be considered as shortlisted.

The core issue here revolves around what exactly is stipulated in the contract and what period is considered as completed work. It’s crucial to have a signed act of completed work, post which payment should be guaranteed.

Additionally, it’s noteworthy that if the client has conducted a certain number of interviews with the candidates you presented, then it corresponds to the obligations being fulfilled on your part. 

Understanding the client’s reasoning behind withholding payment can provide insights on how to better structure the payment terms in the contract to prevent such occurrences in future engagements.

6. Working With Your Candidates After You’ve Terminated Cooperation

Unfortunately, this can mostly be foreseen or tracked by the candidate who shares the joy with you. However, it’s better to conduct an independent audit with an analyst or researcher from your team, who will check where exactly your candidates work, according to LinkedIn, or contact candidates before New Year or other holidays, and at the same time find out how things are and where the candidate is now.

7. Passing Stop-lists Developed With You To Other Agencies

This entails a very complex chain, and tracing it is an extremely challenging task. This action enables them to fill the vacancies using your candidates without compensating you for the groundwork.

A potential countermeasure to this deceitful practice could be abstaining from working with other companies on the same vacancies concurrently. Through such a measure, the likelihood of your client passing on valuable candidate information to competing agencies is significantly reduced.

8. “I Signed A Contract With You, But It Turns Out I Didn’t Have The Authority, Thanks For The Work, But My Director, CFO, etc., Don’t Confirm The Willingness To Pay.”

A very rare and strange situation, but it makes sense to be alerted if all communication is focused exclusively on the HR manager or any representative of the company who is not the COO, CEO, CFO. Especially if the contract was signed by the HR manager himself.

In this case, it is advisable to ask directly and in writing about whether he has such rights and just in case ask to communicate with someone from the management or at least inform that you have now started working with such an employee and signed a contract, will be glad to keep in touch with them (on LinkedIn for instance). Rarely for the tops, such news can be unexpected, and they will warn you themselves that they are not aware.

Conclusion

Unfortunately, the list can continue and, I am sure, you may share even more strange, intentional, and accidental situations when a client deliberately plays games in negotiations or invents ways to not pay and outsmart. However, if you have a well-thought-out contract, are an international company, and clearly understand and know your rights and obligations – the chance of such behavior are reduced.

Of course, personal relationships and how well you assessed all participants in the recruitment process and the one who decided whether to work with you or not are important in the first place.

Wishing you the prevention of uncomfortable situations and only pleasant, solvent, and fair clients!

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In the realm of recruitment, forging a robust contract is the linchpin that holds the client and agency relationship together. A well-thought-out contract not only streamlines the recruitment process but also fosters a trust-based professional relationship. This article elucidates the crucial elements and contemporary updates essential for a standard recruitment contract, seamlessly melding the foundational principles with the latest industry insights.

Signing a contract with a legal entity is one of the mandatory and crucial stages in working with clients, where the nuances described below should be taken into account:

1. Percentage or Fixed Cost for Personnel Selection

The freelance market currently operates from $300 to 8% (of one salary) as a fee. Agencies in Ukraine work from 8% to 25% (for executive search vacancies) and in very rare cases up to 35%. However, as there are more and more agencies, in our practice, we have encountered those willing to work for 20% of the monthly salary or a fixed $800 for a Senior Java Developer in Kyiv.

The percentage is chosen independently and depends on the current workload, the attractiveness of the client, the strategy you have decided to adhere to, and other parameters. It is essential to specify what exactly this percentage is from — Net or Gross, whether the annual salary includes bonuses and additions, whether the amount during the probation period is taken into account or not. If you have agreed with the client to fix the amount depending on the level of the developer, make sure it is detailed what exactly is meant by this or that level, what the salary thresholds are and what to do in situations where you were looking for a Project Manager, but your candidate was considered for a Business Analyst position, and the terms for it were not regulated. Whether the client pays and exactly how much. Specifications and descriptions of profiles are attached as additions to the contract.

2. Payment Terms

There can be unlimited variations, but I’ll outline the main ones:

Retaining Fee (Advance Payment)

The standard percentage for an advance payment is 30% (or 50% or your option) and can be charged immediately after signing the contract so that the agency starts working; it can be paid in advance, and the agency is obliged to provide a shortlist of a certain number of people; it can denote specific services like sourcing, market analysis, providing information on how employees feel at competitors, etc. In this scenario, it is important to think in advance from which exact amount this percentage will be — the average salary in the market, the maximum amount from the range, the minimum amount from the range, etc. Often, the client agrees on a fixed amount of $1000–$5000 (depending on the complexity and level of the position) and the conditions if the agency does not fulfill its obligations.

In Ukrainian realities, this is a very controversial point and without having worked with a client before, it is not always possible to objectively assess the likelihood of closing, how satisfied the client will be with the candidates you show in the shortlists. On the other hand, if the client invests not only a time budget but also finances, feedback, interest in you closing vacancies, and the client’s engagement increases. There will be more barriers to start working with others without getting a result from you.

Success Base. Contingency Fee (Payment upon Job Completion)

This is the most common version in IT Recruitment Entrepreneurs’ practice, and the following variations are possible

• payment/partial payment upon signing of the offer, or when a person starts working (sometimes there’s a month between the candidate signing the offer and starting, so it’s important to think about what exactly is fixed in your contract);
• partial payment after the candidate passes the probationary period;
• full payment after passing the probationary period;
• mixed options are also possible, like partial advance payment, partial payment upon starting work, and after passing the probationary period.

3. Warranty Period

The warranty period entails what the agency provides if the candidate found isn’t suitable. This could be during the probation period, and in rare cases, up to 12 months for Executive Search positions. It’s vital to describe exactly what you commit to doing – providing a replacement, within what time frame, how many replacements, and under what conditions – for free, a 50% discount, or your own term. Perhaps you choose a money-back guarantee, and the client may insist on a money-back option if you don’t find a replacement.

4. Exclusive Rights

Consider in advance whether you are ready to work with other agencies in parallel and whether an exclusive is needed. For what period, for what region (if recruiting in multiple countries). What are the sanctions if the client violates the exclusivity agreements, and will this be stated in the contract. What are the terms if you are not working exclusively. For instance, this could be the mandatory provision of stop-lists, timely informing subcontractors if there are candidates in the final stages, etc.

5. Additional Terms to Mention in the Contract

5.1. Sanctions in case the client changes requirements or cancels the selection request due to internal company situations. This concerns closing a vacancy due to a lack of budget, staff reductions, internal circumstances, but not independent closure of the vacancy by internal recruiters.

In case the client changes over 50% of the requirements, you may demand payment of a certain size of the previously discussed fee, and it’s important to describe after exactly what work done on your part: providing candidate resumes, 2–3 people who have passed the initial interview stages, etc.

5.2. Penalty or terms, can the client work directly with your employee and for how long the restriction lasts.

It’s a common practice when a recruiter, who successfully fills vacancies for a particular client, gets “lured away” or shows interest towards a favored client. For those who find it important to regulate the necessity of coordination with the current employer (agency) in the contract, indicate that for 6, 12, or 36 months, the client does not have the right to work with recruiting-involved employees or should pay a certain fee to the company for “luring away” or employing the former subcontractor.

5.3. The period during which the candidates you submitted are considered yours. There might be a situation where a person, who was considered for a vacancy, didn’t suit now but was hired after a certain period. This especially concerns cases when an external agency works with the internal database of the company and adds candidates and summaries directly to the client’s base. Specify how many years such candidates will be attached to you regardless of who will communicate with them later.

5.4. Measures in case the client loses contact or there’s a communication failure. In rare cases, it makes sense to indicate that if the client does not get in touch within a certain time after contact through the specified communication channels, the agency has the right to suspend the search and bears no obligations. Especially important in the case of advance payment.

5.5. Organizational nuances, like the languages in which the contract is; the court through which the disputes will be settled. Remember, if the client insists on not Ukraine, it’s not always bad (if the courts indeed work in that country).

Unspoken Rules

It’s highly important not to lure away the client’s employees to other projects the agency is working on. Unfortunately, in Ukrainian realities, such situations are overly frequent and contradict the classical model of working with agencies, not contributing to the client’s business development.

If the client is not ready to pay more, the agencies may also negotiate a reduction or absence of the warranty period. However, if such situations occur, the relationship with the client will also not be maintained.

There are no situations when the client paid for a candidate and happily continued working with you after the person was hunted by your colleague or a colleague from another agency/company within 3 months.

If the client doesn’t close vacancies with your help over a long period — this is a reason to terminate the contract and not “store” the client “just in case”. If you have a contract — you don’t have the right to take candidates from this company, thus you don’t recruit and limit yourself in the candidate pool. If the contract is indeed terminated, there’s a gentleman’s rule not to hunt those for whom you were paid money. Never. 

Sometimes, the client insists on signing an engagement letter, in which all these principles are described, and it goes in addition to the contract. Above are some rules by which our network operates and what recruiters with a whopping 50+ years of experience were taught. What rules to follow is an individual decision and quite likely, you’ll be ok not to terminate contracts, offer candidates “if they appear” and parallelly hunt from the same companies. I described the main international practices.

Additional Contract Creation Notes for IT Recruitment Entrepreneurs

• Remember The Importance of Clear Terms in Recruitment Agreements:

It’s crucial to have clear terms in a recruitment agreement to ensure mutual understanding of obligations. For instance, it should be clear whether or not a client can go directly to a candidate without the recruiter’s involvement, and what the financial implications of such actions would be​. Explore more on this topic here.

• Staying Updated on Regulatory Changes

Contract recruitment specialists often emphasize the importance of being updated on regulatory changes to ensure that the recruitment process aligns with current laws and best practices

• Model Recruiting Agreement

The American Staffing Association and the National Association of Personnel Services have jointly developed a professional template for firms providing recruiting, search, and placement services. This model agreement serves as a guide in preparing client agreements​.​

Conclusion

Perhaps, if these principles and in advance thoroughly thought-out contract terms are detailed and adhered to by the agency, the quality level, professional approach in the industry will be slightly higher, and the agencies’ reputation will not be as discriminated as it is observed now.

Engage competent and experienced lawyers and be sure to supplement, modernize your contract during the life of your company and obtaining new cases requiring attention discussion at the start. Thus, you can foresee “strange” and disputable situations and possibly not bring them to the point of having to be settled in court.

Besides that, IT Recruitment Entrepreneurs should pay attention to how ready the client is to work under your terms and what exactly tries to “squeeze out”. As practice shows, the more rigid contract negotiations, the “funnier” the work will go further. But that’s a completely different story.

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