Home >  Blog >  Attention small recruitment agencies: get your staffing priorities right

Attention small recruitment agencies: get your staffing priorities right

Posted by Nigel Harse FRCSA on 9 August 2017
Attention small recruitment agencies: get your staffing priorities right

New data shows the majority of smaller staffing agencies are experiencing a declining headcount. Here's the fall out.

If you're like most recruitment agencies right now, you are probably experiencing a busy period with a strong open order book. In fact, a review of performance for 115 Australian recruitment agencies showed a healthy nine per cent growth in sales volume in the 12 months to April 2017 that's an additional $141 million in sales.

However, this growth is coming at a cost for smaller firms and in particular those who are actively prioritising filling orders ahead of growing their team.

The latest APositive insights powered by SIM shows a noticeable decline in headcount for smaller firms, which is holding back annual sales and sales growth.

Here's what we found:

Review of 47 firms with a team size of 1 to 10 >>
Average headcount of 7.3 Full Time Equivalents and median of 6.8
54 per cent recorded an average decline in headcount of -4 per cent
Review of 32 firms with a team size of 11 to 20 >>
Average headcount of 15.3 Full Time Equivalents and median of 14.3
47 per cent recorded a decline in headcount of -4 per cent
Review of 36 firms with a headcount greater than 21 >>
Average headcount of 35 Full Time Equivalents (up by five per cent) and median of 27 (up by 3.8 per cent)
Just 28 per cent reported a decline in headcount

The best way to address the problem of declining headcounts, is to prioritise internal recruitment and retention as a high ranking, business critical activity even when fully staffed, you should have new hires in the pipeline always.

Author: Nigel Harse FRCSA
About: Highly regarded and widely sought after for his knowledge, unwavering passion and innovation, Nigel is a 40-year veteran of the recruitment industry.
Connect via: Twitter LinkedIn
Tags: Business Profitability Insights Blog Successful Recruitment Staff Turnover Staffing and Recruitment

TRY BEFORE YOU BUY

See how your staffing firm stacks up against industry trends   

Bookmark SiteTell a FriendPrint