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We have teamed up with Voyager to create a short survey about a few aspects of the recruitment industry.
We want to find out how professionals within our industry find their next role, use LinkedIn, if and how you network and your attitude to personal development and training. We plan to use the results to support some blog posts here in the future (so please help me out by completing the survey!).
You don’t have to be a Voyager customer to take part, just click here.
The Recruitment and Employment Confederation’s Annual Industry Turnover and Key Volumes Survey 2007/08 has been published and released. It's run in association with the Recruitment Finance Division of Lloyds TSB Commercial Finance and Recruitment Consultant magazine.
Major findings of the report are:
· A record total industry turnover of £27.005 billion compared to £26.673 billion in 2006/07. This represents a 1.3 per cent increase in overall turnover.
· Temporary placements fell from 1,377,740 to 1,220,310
· Overall turnover for temporary/contract staff went down by 1.8 per cent to £22.730 billion.
· Permanent placements decreased from 787,280 in 2006/07 to 726,280
· Total turnover for permanent staff shot up by 21.7 per cent to £4.276 billion compared to £3.514 billion the previous year. This pushed up its share of the market by 1.6 per cent to 15.8 per cent from 13.2 per cent
· The temporary/contract share of the total business was 84.2 per cent and permanent 15.8 per cent – up 1.6 per cent on the previous year
· The largest number of temporary placements was in the Industrial and blue collar sector with 18 per cent of the market followed by construction with 14 per cent and education/teaching at 11 per cent
· The largest sector for permanent placements was nursing/medical care with 15 per cent followed by secretarial/clerical at 14 per cent and technical/engineering at 11 per cent
· Staff employed in the recruitment industry rose to from 101,286 to 108,883, an increase of 7.5 per cent.
· Small multiples took the largest proportion of permanent recruitment sales per branch with £349,250
· Permanent recruitment sales per employee also rose from £63,080 in 2006/07 to £70,420 in 2007/08.
· Medium multiples were responsible for the largest proportion of temporary recruitment sales with £2,062 million
· Temporary sales per employee dropped from £508,176 in 2006/07 to £472,404 in 2007/08
· Small multiples had the largest number of temporary workers per branch with 114 on their books compared to an industry average of 77.
· Total turnover per branch fell slightly from £1.761 million in 2006/07 to £1.714 million in 2007/08.
Copies of the Report are available from the REC (£99 for members and £149 for non-members), www.rec.uk.com/research or by calling Maggie Pattinson on 020 7009 2159.
I had a call from a lovely chap at Voyager Software yesterday asking if I’d be interested in an analysis of the pre-budget statement. Never one to pass up the opportunity for someone else to do all the work – of course I said “yes please”. So, here is Voyager’s Sales Director, Paul Thompson’s analyses on how the Budget statement will affect the SME Recruitment market.
“We all know that cash flow is the lifeblood of an SME recruitment business and this was the main thrust of the Chancellor’s new measures.
“First the good news. From now on, recruiters can spread their tax obligations (including corporation tax, VAT, National Insurance and Income tax) across monthly instalments, rather than in one cash flow stripping whack.
“Further to this, the government will now allow recruiters to offset losses against profits from the last three years, rather than only the previous year. So if 2009 turns out to be the challenge that is widely predicted, many recruitment firms will be able to claim a tax rebate going back as far as 2006/7.
“The Chancellor will also make it easier to get credit through a small business finance scheme, pledging £1 billion for small businesses to be made available in loans from £1,000 to £1 million.
“They have also promised that state owned banks will pledge not to increase interest rates for SME overdrafts for at least 1 year – although with interest rates predicted to drop to 0.5% by the end of 2010 this may not be quite as generous as some may think.
“The Chancellor’s much trumpeted reduction in the rate of VAT to 15% for the next 13 months will have very little impact on the wider economy – with shops reducing prices by 20% to make a sale, I can’t see how much use a further 2.5% will be, except for recruiters supplying financial institutions. Otherwise it’s good news for printing companies, maybe, but it will be more of a hindrance than a help to the recruitment industry at large.
However, with the increase in small companies’ rate of corporation tax, deferred to an as yet unspecified date, many will still breathe a sigh of relief.
“All this expenditure has to be recouped from somewhere, and with National Insurance contributions set to rise in April 2011 by ½ of one percent for both employees and employers, the smart operators are bound to replace administrative staff with software packages, such as Voyager’s Mid-Office product that will effectively slash employer’s wage bills by an average of £20k per year, per employee.
“So it’s not all doom and gloom. The Chancellor was at pains to point out that that there are still 500,000 job vacancies in UK, and with the Prime Minister declaring his intention to build his way out of the oncoming recession with a variety of road widening schemes, the outlook might be significantly brighter for those Recruiter’s operating a Construction division.”
I shall allow them a tiny bit of self promotion in return…… for details of how Voyager’s software packages can help take the bite out of the credit crunch, visit www.voyage.co.ukor contact Paul on 0800 008 6262.
