The Year That Was:
We all know that 2024 was turbulent and Apositive experienced it firsthand, with a gradual 10-15% drop in funding needed from our clients, and temps paid from March through to September from current clients. Fortunately, the market began to stabilise, and over the past six weeks, we’ve started to see an increase in temp sales and an increase in demand for temp and contract jobs. It makes writing this wrap up a bit more exciting when you’re ending the year on APositive note!
Not to go on about the “market” too much, however I’m proud to be in a position to support the industry through these times. APositive have supported; 26 start-ups launch, 7 refinances for businesses looking for more tech enabled funding & flexibility, have enabled a further 31 recruitment and labour hire businesses leverage funding and access outsourced payroll for the first time to help them scale.
With our current clients, we increased our focus on supporting them to make better credit decisions when signing on their clients, as we have seen a significant increase in insolvencies. Also, as I'm sure you know, the ATO was cracking down, chasing their money and unpaid debts, which many would say is rightfully so.
Therefore, we worked closely with our clients to provide as much flexibility as possible, whether it be;funding limit increases, short term funding over their approved limits, or access to more cashflow by leveraging their perm invoices. Doing this allowed our clients to meet their ATO commitments, and bridge the time gap between due invoices which were delayed due to further delayed payment terms and payroll. Cost savings and the challenge of finding high-quality, recruitment-focused payrollers drove an increased interest in outsourced payroll solutions, even among some of the larger, well-established agencies.
Planning for a Strong 2025:
Looking ahead to 2025, I may not have all the answers, however our deep insight and our conversations with recruitment businesses gives us a lot more confidence in the market. I am optimistic that the recruitment industry next year will be a much stronger market.
Trends to look out for:
I expect agencies will be looking at smart ways to implement AI - If you’re not, you’re going to be left behind. And no, AI is not going to replace you. It’s the opportunity to automate and streamline regular tasks. If I repeat a task every day or week, I look at ways to automate that specific task.
Additionally, I expect companies to put more emphasis on the development of their consultants to become more well rounded specialists, enhancing their ability to understand client needs, build stronger relationships, and adapt to market changes on a needs basis, ensuring that agencies will attract and keep the top talents at their firms (watch this space, APositive have some exciting partnerships coming).
Lastly, I expect recruitment firms to offer more long term solutions to their clients, including RPO and MSP type models, which we’re extremely passionate about and constantly working with our clients on. This will allow each of their clients to feel valued and tailor their solutions to meet their personal and professional needs.
Some news on the wider recruitment market and highlights across the country to look out for. I was excited when I heard about the $9 billion international airport project in Perth, which is expected to create thousands of jobs during both the construction and operational phases. Further infrastructure projects such as the Sydney Metro expansion and Melbourne’s Suburban Rail Loop, each offering significant opportunities for both contractors and temp workers.
APositive is Here to Help:
If you’re thinking about starting, scaling, or looking into more solutions for your clients in 2025, myself and the team would love to chat.
Now, here’s to finishing the year off strong, some well earned down time with our families and loved ones, and to a cracking 2025! Merry Christmas and a Happy New Year from myself and the APositive Team!
