Recruitment sector seeks flexibility in response to seasonal growth

Recruitment companies in London have made a clear move towards flexible serviced office space with a 10 per cent increase in take up over the last year, a trend that is expected to continue as the sector becomes ever more niche and firms respond to seasonal changes in demand for their services, according to research published by MWB Business Exchange.

Recruitment consultants and agencies have increased their number of workstations in Canary Wharf, the City and the West End by 10 per cent , when compared to this time last year, with the desire to be more flexible driving the take up throughout London.

John Spencer, CEO, MWB Business Exchange, commented, ìThe recruitment sector is very cyclical, with demand for services changing through the year. This makes flexible offices very attractive to recruitment firms who may need to expand to meet demand during these peak times, such as the three months after Christmas. The traditional leased office model does not allow for this flexibility, which is why so many companies are choosing the more flexible route.î

Spencer continued, ìTen, fifteen or twenty year leases are a substantial burden on facilities managers, who must account for the use of physical space, and finance directors who have to account for the liability on the balance sheet. With an increasing number of small niche players in the recruitment market, we fully expect the use of serviced offices to continue to rise as companies use them as part of their expansion strategy.î

The research also showed the communications industry take up of serviced office space rose by 49 per cent, banking and finance by 74 per cent, Government and public sector increased by a third (32 per cent) and IT increased by 15 per cent.

MWB Business Exchange compiles the index by tracking the sectors that are hiring additional workstations and compares the growth to previous years.