Agency Recruitment? Best it has ever been!

In Australia, anyway. But from what I hear and read, the US too, and elsewhere as well.

The UK was steaming, but the Brexit fiasco is not helping as you can imagine. Although it hardly slowed down there, with over 8,000 new recruitment agencies opening in 2018. (that is eight thousand!)

Just a wild opinion? No. I have shared the proof before, and most of my clients are indeed hitting record GP and profits. But the newest data tells us that our industry is more than ‘doing well’. It is hot!

See the excellent information from Nigel Harse at Staffing Industry Metrics. In fact, let me quote Nigel, as he says it so well.

The recruitment industry in Australia is booming. I’d go as far as to say that I’ve never seen it this good. Demand for permanent roles is high, business confidence is strong, and interest rates are low.

Permanent recruitment is very robust with 22% average year on year growth and temporary, and contact figures are revealing average growth of 25% on the previous year’s numbers. Nine in ten participating recruitment agencies, regardless of size, has plotted the same trajectory – growth.

Since we first began reporting on recruitment industry performance in 2003, this is by far the strongest market I’ve seen, and the chart below provides proof of the pudding.

Permanent and Temporary/Contract Sales. Australia 2003 – 2018

Look at the mustard coloured line. That is Temp/ Contractor sales. Highest ever. The blue line is permanent sales. Record highs.

So, as we enter 2019 in earnest, I offer you a two-edged message;

The market is great. Candidate short markets are even better. Of course, it’s hard to find talent! And that’s good as long as you become a world champion at spotting talent. That’s what your fee is for after all. Don’t believe me? Try a market where there are no jobs and a surplus of talent. See how that feels. So, make hay. Work hard to reap the available rewards. Don’t complain about candidates, clients or competitors. You have never had it so good.

But, don’t be shallow. Build a business and a personal reputation that will allow you to thrive or at least survive when the market turns. Don’t flop to the transactional and the superficial. Don’t become a resume flicking spammer. Go the other way. Build close relationships. Work with better and fewer clients. Show your value by your access to candidates, your deep market knowledge, and your influencing skills. If you run a business, learn the lessons from previous downturns and build companies that can cream it in the good times, but pull back fast and adapt to sudden revenue drops.

But for now. Smile my recruiting colleagues. This might be as good as it gets!

Have a great 2019, all readers of The Savage Truth

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