Professional recruiters’ thoughts turn to growth after strong year
23 September 2013
Almost three-quarters of professional recruitment firms reported an increase in their net fee income (NFI) in the last 12 months, according to research by the Association of Professional Staffing Companies (APSCo) and Deloitte.
Mon, 23 Sep 2013Almost three-quarters of professional recruitment firms reported an increase in their net fee income (NFI) in the last 12 months, according to research by the Association of Professional Staffing Companies (APSCo) and Deloitte.
The inaugural ‘APSCo Deloitte UK Recruitment Index 2013’ found that 72% of professional recruitment firms surveyed recorded an increase in NFI in the past year, with over a quarter of those reporting revenue increases of more than 30%.
As a result of this growth, 61% of those surveyed plan to open new offices in the next 12 months.
The survey also found that 63% of respondents are generating fee income from international markets and of those, 43% have physical overseas offices. The remaining 57% generate overseas income from a UK base. International NFI stood at £1.4m per average overseas office, compared to just £0.3m per average UK office.
Ann Swain, chief executive officer of APSCo, says: “As confidence begins to return to the sector, we are seeing renewed appetite for investment, particularly with regards to opening new offices. Firms are likely to be considering overseas investments as their clients continue to expand into new markets.”
Katie Folwell-Davies, recruitment industry services partner at Deloitte, says: “Whilst many of the listed companies have reported challenging conditions, specifically in the UK and European markets, a number of privately-owned companies are trading strongly.
“Pockets of growth can certainly be found among those specialising in expanding, niche sectors. Talent is high on the boards’ agendas and will continue to be a main priority over the next year.”
The survey found that while welcome, growth brings its own challenges, with 66% highlighting increasing headcount as a key issue.
For in-depth coverage of this story, please see the October issue of Recruiter, out 17 October.
The inaugural ‘APSCo Deloitte UK Recruitment Index 2013’ found that 72% of professional recruitment firms surveyed recorded an increase in NFI in the past year, with over a quarter of those reporting revenue increases of more than 30%.
As a result of this growth, 61% of those surveyed plan to open new offices in the next 12 months.
The survey also found that 63% of respondents are generating fee income from international markets and of those, 43% have physical overseas offices. The remaining 57% generate overseas income from a UK base. International NFI stood at £1.4m per average overseas office, compared to just £0.3m per average UK office.
Ann Swain, chief executive officer of APSCo, says: “As confidence begins to return to the sector, we are seeing renewed appetite for investment, particularly with regards to opening new offices. Firms are likely to be considering overseas investments as their clients continue to expand into new markets.”
Katie Folwell-Davies, recruitment industry services partner at Deloitte, says: “Whilst many of the listed companies have reported challenging conditions, specifically in the UK and European markets, a number of privately-owned companies are trading strongly.
“Pockets of growth can certainly be found among those specialising in expanding, niche sectors. Talent is high on the boards’ agendas and will continue to be a main priority over the next year.”
The survey found that while welcome, growth brings its own challenges, with 66% highlighting increasing headcount as a key issue.
For in-depth coverage of this story, please see the October issue of Recruiter, out 17 October.
