87% of recruitment consultants increased their turnover last year
Only 11% had used private equity or stock market flotation to fund their businesses
Lack of suitably qualified staff considered most important factor limiting growth
A recent survey of recruitment consultancies conducted by law firm Nabarro shows a thriving sector with 87% of recruitment consultants increasing their turnover in the last year. Predicted growth rates were positive with 98% of respondents predicting growth over the next five years, with average growth over that period optimistically expected to be between 31% and 50%.
Interestingly very few recruitment companies in the survey had used private equity or a stock market flotation to fund their businesses: only 11% had used these sources in the past, with a slightly larger proportion considering using them in the future.
About a third of directors felt that they rarely or never receive advice or guidance that is impartial. This rose to 50% for directors of smaller recruitment consultancies.
Lack of suitably qualified staff was seen as the most important factor limiting the future growth of the company. Other concerns that could limit growth included a downturn in the market, increasingly fierce competition and client pressure to reduce fees.
Iain Newman, corporate partner said:
ìThe recruitment sector is characterised by growth and the expectation of continued strong growth in years to come across all sizes of recruitment companies, from small to very large.
Although bullish in their predictions, directors generally only considered a narrow range of ways to fund the growth of their businesses. Only 11% of those surveyed had used private equity as a source of funding.
About a third of all directors did not feel that they received impartial advice or guidance, which indicates the need for them to seek out professional advisers who will be impartial but also act in their best interests.
Lack of suitably qualified staff is clearly top of mind for most directors in the recruitment sector. Over half of those surveyed quoted this as the single most important factor limiting the future growth of their business. This clearly indicates that directors need to focus on positioning their companies favourably with regard to their competitors in the years ahead if they are to win the fight for the best staff.î
Survey by law firm Nabarro shows booming and optimistic recruitment industry
A recent survey of recruitment consultancies conducted by law firm Nabarro shows a thriving sector with 87% of recruitment consultants increasing their turnover in the last year
