Perm sales growth – did you keep up with the pack in 2017?
Find out where your recruitment agency’s perm sales sit in this job rich, candidate poor market.
Perm sales can often be viewed as a barometer of general business confidence within the Australia recruitment industry.
And, data just released to APositive from Staffing Industry Metrics reveals many recruitment agencies recorded their best ever perm sales performances in 2017.
The results, which include a survey of 38 small recruitment agencies across Australia, also indicate the current market condition are job rich, but candidate poor – a combination that best suits our industry. (Small teams have a headcount of up to 10 staff).
The top 10 percent registered four consecutive quarters at new record highs for perm sales volume. Plus, average annual growth of 11 percent or more, taking annual perm sales to $3 million plus for the first time.
While the top 25 percent annual perm sales for 2017 sat at $1.7 to $1.9 million. These agencies registered two quarters, which set new record perm sales volumes and 15 percent annual growth.
The mean, or average, perm sales recorded was $1.1 to $1.3 million. With the majority of firms in this cluster experiencing four quarters of year-on-year growth with new record sales volumes being set in three quarters. This group experienced annual growth of 12 percent.
How did your recruitment agency stack up?
Smaller sized teams kept up with the pack if they achieved annual growth of 10 to 15 percent in 2017.
For medium sized recruitment agencies, those with a headcount of 11 to 20, 2017 was a good year for many. The top 10 percent by sales volume registered a bumpy year where the first three quarters fell behind the prior year, but a strong fourth quarter was achieved. Perm sales volumes in 2017 tended to be $3.9 to $4.1 million and were five percent softer on 2016.
A little further down the pack, at the 75th percentile, annual perm sales sat around $2 to $2.3 million. This cluster registered three quarters in 2017 which set new sales volume records and all four quarters were up on 2016. This group achieved 13 percent annual growth.
Meanwhile, the average annual perm sales in 2017 ranged from $1.6 to $1.9 million. Firms in this cluster experienced four quarters of year-on-year growth with new sales volume records also being set in each of the four quarters. Average annual growth surged by 21 percent on 2016.
Finally, for many recruitment agencies with teams of 11 to 20 staff, quarter four of 2017 closed on another high and set a new perm sales volume record for any quarter. If you achieved annual growth in 2017 of 13 to 21 percent you are keeping up with the pack.
Given the strong perm sales performances recorded by many at the tail end of 2017, it seems we are in for more good times ahead with business sentiment remaining positive and driving further job growth.
P.S. If you enjoyed this article, you might also be interested in reading Australian and New Zealand recruitment agencies record productivity growth.