Employers pay more to recruit the best

07/11/2008

Employers are willing to pay more for the right candidates, according to recruitment industry figures released today.

Between April last year and this March, despite a fall in the number of permanent places available, recruitment agencies reported an increase in turnover of some 21.7% from securing permanent placements, according to figures from the Recruitment and Employment Confederation.

The number of available posts fell from 787,280 to 726,863, while turnover in the same area reached £4.276bn.

The REC chief executive Kevin Green said: “The huge growth in permanent recruitment turnover shows that employers are willing to pay more for the right candidate. This remains the case even in the changing employment climate.”

However, director of Lloyds TSB commercial finance recruitment finance division, Paul Saunders was less positive in his review of the survey: “Whilst the results of the survey are broadly positive, recruiters will be feeling cautious now that the impact of the economic turbulence is being felt across the industry.

“The year ahead is likely to test companies, with flexibility and control of cash the key factors in achieving success.”

The researched revealed the number of temporary and contract workers declined by 1.8% over the same period; turnover fell at the same rate. This drop was felt most acutely by single site agencies which make up the bulk of the industry.

During the year, the number of staff employed in the recruitment sector rose by 7.5% and overall recruitment industry turnover hit an all-time high of £27bn.