Wait! What? In-house recruiter turnover is worse than Agency?

Recently I published some confronting data from Staffing Industry Metrics where Recruitment Agency staff turnover in 2018 was estimated at 47%, an horrific number, and one that prompted this blog from me.

However, we now have fresh data from recruitment technology firm JobAdder, who had their data analysts run reports from approximately 10,000 recruiters in 1,700 agencies in ANZ, a very good sample size.

Brett Iredale, MD of JobAdder says the data is rigorous as “JobAdder know immediately when a consultant joins and leaves an agency”, (The client only pays while the consultant is in the seat!) and agencies who use JobAdder have all consultants on the system.

The JobAdder data shows the Recruitment Agency industry had a 22.2% turnover.

This is high compared to other industries, but nowhere near as dire as the 47% we recently heard. One explanation for the discrepancy is that the JobAdder data is for the last 7 months only, which the Staffing Industry Metrics was for the 12 months of 2018 (and the SIM data is based on a 12-month rolling average)

But to me the big news is that Agency turnover at 22.2 % is actually lower than turnover amongst recruiters working in-house at corporates (26.9%)

This fact challenges some stereotypes about Agency Recruitment being ‘harder’ than a Corporate recruiting role. It has long been suggested that a lot of Agency recruiters go in-house because they don’t like sales, or resist KPIs and activity management. They want a more ‘professional’ environment.  The more cynical even suggest they are looking for an ‘easier life’.

However, perhaps Talent Acquisition ‘in-house’ has its own challenges for the recruiter. Sketchy job-briefs, poor technology, conflict with hiring managers, frustration with processes, workload, or perhaps difficultly recruiting for a company with a mediocre employer brand.

Maybe the message for recruiters here could be ‘be careful, the grass is not always greener on the other side’.

Definitely though, at either 22% or 26%, recruiter turnover is too high, comparing very unfavourably to other industry sectors

It is damaging careers and company performance, but it is also impacting service to clients and candidates as their contacts, in Agency or Corporate, jump on and off the recruiting merry-go-round.

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