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PART 2: New profitability results - how medium recruitment teams are tracking

Posted by Nigel Harse FRCSA on 24 September 2017
PART 2: New profitability results - how medium recruitment teams are tracking
If you're an Australia-based recruitment agency with a team of 11 to 20 staff, you will want to know these new metrics.

You may recall, last week we revealed the latest data surrounding profit per person achieved by small recruitment agencies.

Here, we take a look at how profitable agencies with medium sized teams are. Because as you know business management and growth in today's competitive marketplace is not just about overall profitability, but more the correlation between how many staff you employ and the profit your agency produces, as well as how your results compare to industry trends.

To help, we have reviewed the profitability per person results achieved by 105 agencies across Australia during the 2016-17 financial year.

In FY17, the median result for teams with 11 to 20 staff was $29.7K profit per person. This is an 18 per cent improvement on FY16.

What's more, the mean result lifted by 10 per cent on the prior year to $33.2K, but sits just shy of the three-year average of $34.2K profit per person.

Put simply, if you have a team of 11 to 20 and profit per person in the range of $29K to $33K for the last financial year, you are achieving the industry average.

What are the higher achievers producing?

The top 25 per cent (75th percentile) recorded a healthy 12 per cent improvement on FY16 with profit per person rising to $53.6K.

Meanwhile, the top 10 per cent (90th percentile) softened by 16 per cent, but they still produced $71.4K per person against a three-year average of $86.1K.

So, why not take a look at your profit metrics for the last financial year and run it against these results? After all, you may gain a new insight into your business performance and identify some strengths and weaknesses worth exploring during the new financial year.

If you found this article interesting you might also like: What small and medium recruitment firms should know about operational costs.

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.
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Tags: Return On Investment Business Profitability Insights Blog Successful Recruitment

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