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One in five recruiters to go out of business, predicts Hays’ Venables
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One in five recruiters to go out of business, predicts Hays’ Venables
One in five recruiters will go to the wall in the next two years, according to Hays’ finance director Paul Venables
Speaking after Hays released its latest interim management statement, Venables said: “My expectation is that we will see 20% of companies disappear in the next two years.”
Venables continued: “In the perm market there are more than 10,000 registered companies in the UK, and including those who are not registered that is a massive amount of companies, and a lot of those small one will really be hurting now. If you are in a niche area or in perm market place you are going to struggle.”
Venable said this was a UK view, but it was the same in all the large economies.
Venables added: “All the big players will do well and come out in a strong position.”
Venables comments followed Hays’ interim statement for the third quarter showed that the company’s permanent business had been hit hard by what it described as “deteriorating market conditions”.
Across the group, permanent net fee income for the quarter ending 31 March was 43% down compared to the same quarter in 2008.
“Demand for perm continued to fall across all markets,” said Venables. And he said he didn’t see any signs of improvement. “Things are tough and we will work on the basis they things will continue to be tough for some time.”
Hays’ temporary business was more resilient, registering a 10% fall.
Net fee income for the group fell 27% compared with the same quarter last year. UK net fee income was the hardest hit of the group’s regions, registering a 37% fall. This compares with 32% for Asia Pacific, and 7% for Continental Europe and Rest of the World.
Venables said the company had “continued to react swiftly to market conditions”. During the quarter headcount across the group was reduced by 11% (around 600 staff) primarily through natural attrition and performance attrition. UK headcount fell by 9% in the quarter. Headcount across the group was now 27% lower than a year ago.
However, Venables was unable to give reassurances on staff numbers in the UK. Venables told Recruiter: “ I would never give one [a prediction] because you have got only three to five days’ visibility. Markets are tough and we don’t expect that to change. We are more minded to reduce headcount than to increase it.”
However, Venables pointed out a number of bright spots including IT and education and healthcare, where headcount was 25% up this year, he said.
Source:
http://www.recruiter.co.uk/one-in-five-recruiters-to-go-out-of-business-predicts
Speaking after Hays released its latest interim management statement, Venables said: “My expectation is that we will see 20% of companies disappear in the next two years.”
Venables continued: “In the perm market there are more than 10,000 registered companies in the UK, and including those who are not registered that is a massive amount of companies, and a lot of those small one will really be hurting now. If you are in a niche area or in perm market place you are going to struggle.”
Venable said this was a UK view, but it was the same in all the large economies.
Venables added: “All the big players will do well and come out in a strong position.”
Venables comments followed Hays’ interim statement for the third quarter showed that the company’s permanent business had been hit hard by what it described as “deteriorating market conditions”.
Across the group, permanent net fee income for the quarter ending 31 March was 43% down compared to the same quarter in 2008.
“Demand for perm continued to fall across all markets,” said Venables. And he said he didn’t see any signs of improvement. “Things are tough and we will work on the basis they things will continue to be tough for some time.”
Hays’ temporary business was more resilient, registering a 10% fall.
Net fee income for the group fell 27% compared with the same quarter last year. UK net fee income was the hardest hit of the group’s regions, registering a 37% fall. This compares with 32% for Asia Pacific, and 7% for Continental Europe and Rest of the World.
Venables said the company had “continued to react swiftly to market conditions”. During the quarter headcount across the group was reduced by 11% (around 600 staff) primarily through natural attrition and performance attrition. UK headcount fell by 9% in the quarter. Headcount across the group was now 27% lower than a year ago.
However, Venables was unable to give reassurances on staff numbers in the UK. Venables told Recruiter: “ I would never give one [a prediction] because you have got only three to five days’ visibility. Markets are tough and we don’t expect that to change. We are more minded to reduce headcount than to increase it.”
However, Venables pointed out a number of bright spots including IT and education and healthcare, where headcount was 25% up this year, he said.
Source:
http://www.recruiter.co.uk/one-in-five-recruiters-to-go-out-of-business-predicts
