UK businesses use of recruitment agencies fell again last year, with expense cited as the main turn-off for companies, according to the Chartered Institute of Personnel and Development¹s latest study on recruitment, retention and turnover.

The survey of 905 employers found that 73% of businesses still used recruitment agencies in 2006, this is down from 76% in 2005.

The report found the key driver for organisations¹ move away from using agencies is to cut down on recruitment costs (72%). Adopting a direct-hire strategy is also identified as another motive for not using or reducing the use of agency services (53%). It found that 81% of employers using agencies do so for hiring temporary workers and 78% for seeking permanent staff.
 
* See Recruiter 13 June for more details