Permanent margin rallies, temporary margins hold

Recruitment Industry Benchmark's new Index.

The average recruiter in the RIB Index achieved an average permanent placement margin of 16% in Q2 2019, up from 13% recorded in the same period last year. In comparison, the average temporary recruitment margin (19%) was the same as the level recorded in Q2 2018.

With heightened signs of skills scarcity, coupled with candidates’ reluctance to move posts in these continuingly uncertain economic times, increasing levels of reward seems an appropriate strategy for recruitment intermediaries. But with the growing complexity involved in sourcing and securing temporary workers – and then ensuring their continuing compliance with a changing raft of legislative requirements – it is unsurprising that margins are holding for this area of resourcing support. 

Belinda Johnson runs employment research consultancy, Worklab, and is Associate Knowledge & Insight Director of Recruitment Industry Benchmarking  (RIB). The RIB Index provides bespoke confidential reports on industry benchmarks and trends. See www.ribindex.com; info@ribindex.com: 020 8544 9807. The RIB is a strategic partner of the REC.  

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