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Attention small recruitment agencies

New data shows the majority of smaller staffing agencies are experiencing a declining headcount.

Here’s the fall out.

If you’re like most recruitment agencies right now, you are probably experiencing a busy period with a strong open order book. In fact, a review of performance for 115 Australian recruitment agencies showed a healthy nine per cent growth in sales volume in the 12 months to April 2017 – that’s an additional $141 million in sales.

However, this growth is coming at a cost for smaller firms and in particular those who are actively prioritising filling orders ahead of growing their team. The latest APositive insights powered by RIBreport shows a noticeable decline in headcount for smaller firms, which is holding back annual sales and sales growth.

Here’s what we found:

Review of 47 firms with a team size of 1 to 10 >>

  1. Average headcount of 7.3 Full Time Equivalents and median of 6.8
  2. 54 per cent recorded an average decline in headcount of -4 per cent

 Review of 32 firms with a team size of 11 to 20 >>

  1. Average headcount of 15.3 Full Time Equivalents and median of 14.3
  2. 47 per cent recorded a decline in headcount of -4 per cent

 Review of 36 firms with a headcount greater than 21 >>

  1. Average headcount of 35 Full Time Equivalents (up by five per cent) and median of 27 (up by 3.8 per cent)
  2. Just 28 per cent reported a decline in headcount

 

 

ribreport_headcount graph
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The best way to address the problem of declining headcounts, is to prioritise internal recruitment and retention as a high ranking, business critical activity – even when fully staffed.

How does your recruitment agency staffing priorities stack up?

Stay tuned to the APositive blog for the next post on: How small recruitment agencies can attract – and retain – the right people.

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