Attrition rates in the recruitment industry finally appear to be slowing, while expectations for business growth are at record-high levels, according to new research.

The RCSA‘s (Australia’s equivalent to the REC) Quarterly Business Manager Survey, completed earlier this month, shows that turnover is now at 37 per cent.

While still high, the number is significantly lower than the record 61 per cent reported last July.  Agency headcounts were still falling (by close to 10%) in the last quarter, compared to 33 per cent last July.

Releasing the result last week, RCSA CEO Julie Mills noted: "It will take some time for recruitment businesses to return to the size and profitability we saw before the downturn. Now, smart managers will be looking at ways to keep their best people, so that they don’t get lured away once the sector heats up. Providing things like career development, quality education and flexible hours will be high on the agenda again."

Managers preparing for growth

Managers’ expectations of growth in the next quarter are historically high, the report shows. Agencies are expecting business volumes to rise by 8.5 per cent (compared with 5.7% last July), and business confidence – the proportion of managers expecting business to improve – has risen six percentage points to 72.5 per cent.

Simon Lewis, editor of marketing jobs board, Only Marketing Jobs, commented: “The fact that this survey was conducted in Australia does not detract from the excitement all recruiters should be feeling at the moment. The UK marketing jobs climate has witnessed a steady increase since Q409, so perhaps our friends Down Under are seeing the same. Unquestionably, the global recruitment economy is picking up.  And this can only be a good thing for jobseekers.”

Managers have fewer concerns

Recruitment managers are still concerned about the state of the economy, but not as much as before, the survey shows. Nearly three quarters of managers rank this as their biggest worry, down by 13 per cent.  Price undercutting is now a joint top concern, with a stable 73 per cent of managers still worried about it, followed by how to maintain profitability/fee levels (71%), down by seven per cent.

How are recruiters feeling about their sector at the moment? Are jobseekers being presented with more job opportunities? Post your comments please.

Source: Recruiter Daily

Additional comments: Simon Lewis | Editor | Only Marketing Jobs

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