Gauteng Business News

Send  Share  RSS  Twitter  13 Dec 2010

RECRUITMENT:  SA Companies Embrace Recruitment Technologies


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The 2010 South African Recruitment Survey unveils the outcome of the aftermath of the recession on SA’s Recruitment Industry; and reveals how South African companies are shifting towards embracing multiple online platforms and technologies to deliver higher return on their recruitment budgets.

The survey (conducted by the SA Recruiters Network in association with was completed by 213 South African Corporate HR and Employment Agency participants. The intention to review the current status of the recruitment market in South Africa having come out of last year’s stressed economic climate. The survey was also aimed at better understanding how these companies are addressing their recruitment strategies to align themselves with current recruitment trends.

The results of the second annual SA Recruitment survey were revealed to the participants and industry leaders at events held in both Johannesburg and Cape Town this month. Over 140 companies and employment agencies gathered to hear how the adoption of social media, open job boards and integrated recruitment technologies will impact SA’s employment industry in the coming year.
The key findings were as follows:

• 77% of companies are currently hiring with an average of 27% showing an active increase in headcount. Over 34% of companies plan to fill more than 100 positions in the coming financial year.

• The majority of companies (65%) are making use of their internal recruitment departments or line managers to find talent.

• 84.4% of companies still use recruitment agencies, paying a placement fee of between 11% and 15%. 41% of agencies had to reduce their placement fee as a result of recession in order to meet their client’s expectations.

• Both companies and agencies feel that it is important that a company has its own Careers website, yet 18% of agencies still do not have their own website. Most companies list their job openings on their own website.

• Only 38% of employers and 37% of agencies are currently using a Recruitment Management System (RMS) to manage applications and build up their own talent pool.

• There has been a 25% increase in the use of Job Board advertising, which is 7% lower than the rise in social media recruitment. Agencies use of Job Boards has increased by 32% since the previous year, while employer postings have increased by 18%.

• There has been a 29% increase in companies accessing CV databases since last year, while agency access has dropped by 15%. Unlimited CV Database access and application filtering tools are considered the most important online recruitment tools by both companies and agencies.

• There has been a 32% increase in use of social media to find talent, with LinkedIn being the most frequently used by both agencies and employers. Most agencies are sourcing better quality candidates from Job Boards (56%) over Social Networks such as LinkedIn.

• Most companies (57%) find the quality of candidates received from recruitment agencies better than those sourced from Job Boards, while agencies consider Job Boards to offer the highest ROI over other recruitment mediums. Companies consider their own Careers websites as their highest ROI.

• 64% of companies and agencies still advertise jobs in print media such as newspapers or trade publications; however agencies consider print advertising to offer the lowest ROI. 67% of companies see value in advertising their brand in print media to attract talent.

There has been a substantial increase in recruitment activity since last year. Although the majority of companies prefer to use their internal recruitment teams for staffing, and find their highest return on their recruitment budgets coming from their own careers websites, most are still using recruitment agencies to assist them in finding talent; however the average placement fee has dropped from previous years due to economical pressures.

Adoption of social recruitment has increased, although companies and agencies are still finding better quality candidates coming from other sources such as Job Boards (best ROI for agencies) and recruitment agencies (considered most effective by companies). Print media advertising has declined and is predominantly use by companies for branded recruitment campaigns.

Both companies and agencies consider a company website to be important, however some agencies still do not have their own websites, while most companies are using their recruitment websites in conjunction with a Recruitment Management System to manage applications and build up their own talent pools

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