Recruitment Agencies (Permanent) Market Report 2008
Key Note Publications Ltd, January 2008, Pages: 82
This Market Report discusses the market for recruitment companies and employment agencies that operate in the permanent — as opposed to the temporary and contract — employment category. It includes firms that are engaged in general permanent appointments and executive permanent appointments.
The market appears to be strengthening month by month and the value of the market, in the year ending March 2007, was £3.51bn, an increase of 7% on the previous year. Moreover, in 2007, there were 787,280 placements, in comparison with 519,761 in 2002, a strong indication of how far the market has progressed in the previous 5 years. Growth in 2007 has been extremely buoyant. An increasing number of employers — who might once have considered hiring some contract staff for a year — are now switching to offering candidates permanent employment, responding to the danger of not being able to find the right staff when a contract comes to an end.
The market for recruitment companies and employment agencies that operate in the permanent employment category can be split into 11 economic and professional sectors. These are: computing/IT; construction; drivers; education; financial; hotel/catering; industrial/blue collar; nursing/other medical; professional/managerial; secretarial/clerical; and technical/engineering.
The biggest concern for recruitment agencies is candidate supply. Recent research by the Recruitment & Employment Confederation (REC) showed that retention of staff within the industry is another problem. The most difficult positions for recruitment agencies to fill are found in almost any job that has a technical or financial aspect to it, e.g. jobs in IT, engineering, pharmaceuticals, energy, aerospace, banking and insurance. Meanwhile, in many large organisations the human resources (HR) function is being reorganised and sometimes outsourced. This presents new challenges for the recruitment sector. The Internet is becoming ever more popular, not just among the young or IT-literate people. In addition, more senior executives are searching for their next job online.
The market is likely to experience considerable change over the next few years; not only will there be more restructuring, resulting from mergers and globalisation, but the nature of the industry and its processes will also change. A report by the think tank Demos, commissioned by the REC, makes the point that `the traditional divide between extremely personalised recruitment for highly skilled jobs and relatively standardised recruitment processes for low skilled jobs looks set to close in the coming years'. The REC itself is likely to be an agent for change — as it seeks to drive up standards in the industry, and lobbies the Government to initiate changes, the labour market will be enhanced as a whole.
Executive Summary
1. Market Definition
Report coverage
MARKET SECTORS
MARKET TRENDS
A Very Strong Market
Shortages Remain a Key Issue
A Candidates’ Market
Increase in Counter Offers
Increase in the Number of Recruitment Firms
Growing Importance of
the Internet
ECONOMIC TRENDS
Population
Table 1: UK Resident Population Estimates by Sex (000), Mid-Years 2002-2006 Gross Domestic Product
Table 2: UK Gross Domestic
Product at Current and
Annual Chain-Linked Prices
(£m), 2002-2006
Inflation
Table 3: UK Rate of Inflation (%), 2002-2006
Unemployment
Table 4: Actual Number of Unemployed Persons in the UK (million), 2002-2006
MARKET POSITION
Table 5: The Permanent Staff Recruitment Market Within the Overall Recruitment Market by Turnover (£bn and %), Years
Ending March 2003-2007
2. Market Size
The TOTAL MARKET
By Value
Table 6: The Total UK Permanent
Staff Recruitment Market
by Turnover (£bn), Years
Ending March 2003-2007
Figure 1: The Total UK Permanent Staff Recruitment Market by
Turnover (£bn), Years Ending
March 2003-2007
By Volume
Table 7: Number of Permanent Staff Placements, Years Ending March 2003-2007
By Market Sector
Computing/IT
Construction
Drivers
Education
Financial
Hotel/Catering
Industrial/Blue Collar
Nursing/Other Medical
Professional/Managerial
Secretarial/Clerical
Technical/Engineering
Recruitment to Recruitment
3. Industry Background
RECENT HISTORY
NUMBER OF COMPANIES
Table 8: Number of UK VAT-Based Enterprises Engaged in Labour Recruitment and the Provision of Personnel by Turnover Sizeband, 2004-2007
EMPLOYMENT
Table 9: Number of UK VAT-Based Enterprises Engaged in Labour Recruitment
and the Provision of Personnel by Employment Sizeband,
2004-2007
REGIONAL VARIATIONS in the marketplace
How ROBUST is THE MARKET?
LEGISLATION
Anti-Discrimination Legislation
Data-Protection Legislation
KEY TRADE ASSOCIATIONS
Recruitment & Employment Confederation
Association of Technology Staffing Companies
Association of Executive Search Consultants
4. Competitor Analysis
THE MARKETPLACE
General Permanent Recruitment
Executive Recruitment
MARKET LEADERS
Table 10: Selected Leading UK Recruitment Companies in the Permanent Recruitment Market
by Total Turnover (£m),
2005/2006
Adecco Holdings (UK) Ltd
Alexander Mann Group Ltd
Carlisle Group PLC
Hudson Global Resources Ltd
James Reed & Partners PLC
Matchtech Group PLC
Michael Page International PLC
Modis Professional Services Group International PLC
Morson Group PLC
Robert Walters PLC
SThree PLC
main media advertising expenditure
5. Strengths, Weaknesses, Opportunities and Threats
STRENGTHS
WEAKNESSES
OPPORTUNITIES
THREATS
6. Buying Behaviour
Reasons For using recruitment agencies
7. Current Issues
MARKET CONDITIONS
EXECUTIVE SEARCH
CORPORATE ACTIVITY
RECRUITMENT AND RETENTION TRENDS
CHANGES IN HR STRATEGY AND PERSONNEL
TO OUTSOURCE OR NOT?
ONLINE RECRUITMENT
8. The Global Market
The Largest Markets —
the us and the uk
Table 11: The World’s Five Largest Recruitment Markets by Value
($bn), 2005-2007
THE UK BRAIN DRAIN
Table 12: The Top Three Executive Search Firms Worldwide
by Revenue ($m), 2006
9. Forecasts
Introduction
The Economy
Table 13: UK Economic Forecasts
(000, % and million), 2007-2011
FORECASTs 2008-2011
Table 14: The Forecast UK
Permanent Staff Recruitment
Market by Value (£bn), Years
Ending March 2008-2012
Market Growth
Figure 2: Growth in the Total UK Permanent Staff Recruitment
Market by Value (£bn),
Years Ending March 2003-2012
Future Trends
10. Company Profiles
Alexander Mann Group Ltd
Hudson Global Resources Ltd
Matchtech Group PLC
Michael Page International PLC
Morson Group PLC
Robert Walters PLC
SThree PLC
11. Further Sources
Associations
Government Publications
Other Sources
Bisnode Sources
Alexander Mann Group Ltd
Hudson Global Resources Ltd
Matchtech Group PLC
Michael Page International PLC
Morson Group PLC
Robert Walters PLC
SThree PLC
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