Bigger is not always better

29-April 2009

I read with interest the article from Paul Venables, finance director at Hays (recruiter.co.uk, 9 April), and while I would agree with his prediction that 20% of recruiters will disappear in the next two years I would have to disagree with his view that “All the big players will do well and come out in a strong position” and that it will be the small businesses that will be hurting and which will struggle.

Charles Darwin famously said: “In the struggle for survival, the fittest win out at the expense of their rivals because they succeed in adapting themselves best to their environment.”

Well, the economy has changed out of all recognition and the recruitment environment has also changed to expose those unfit and unable to adapt their business to meet the new challenges and demands of clients who in turn have had to make changes in their own struggle for survival and now expect the same of their suppliers.

I believe that it is, in fact, many of the big players who are struggling to survive as it’s the infrastructure which is the most expensive cost for any recruitment business to cover. The big players, with their extensive large office networks and high consultant costs, will be finding it difficult to adapt their business model. With their high overheads and reduced income, the big players will be hurting, and while again I agree with Paul Venables that “Things are tough”, I also believe that ‘tough times never last but tough people do’. And in this context I believe that the small recruiter is tough, adaptable and fitter.

Clients are now looking for a more competitive price and quality of service for their recruitment which the smaller, fitter and more adaptable business model is better able to service. I’m sure we will see many of the big players struggle to match the pricing and service that is now expected by clients — and that can be offered by the fitter, smaller and medium-sized recruitment businesses.

John Wight
Managing director, John Wight Recruitment