Bumpy seas ahead

The 2020 ANZ Recruitment Industry Remuneration dashboard and report are essential business assets for recruitment agencies entering a growing market in the new year writes Nigel Harse and Rod Hore.

The 2020 ANZ Recruitment Industry Remuneration dashboard and report are essential business assets for recruitment agencies entering a growing market in the new year.

Staffing Industry Metrics and HHMC Global have recently completed the third Remuneration Survey.

Salary plus superannuation for the core consultant roles in a recruitment agency have grown 6% in the year ending 30th June. The impact of business changes from March onwards have not been enough to reduce the full-year impact of rising staff costs.

By contrast, poor preCOVID trading conditions, combined with pandemic issues in the April to June quarter, has seen bonus and commission payments plummet, falling 22% from the previous year.

2021 is expected to be a year of growth for the recruitment industry across Australia and New Zealand, with SIA forecasting a strong return from the drop in 2020, but not right back to the levels enjoyed in 2019. Suppressed sectors (eg. hospitality) are expected to return and government initiatives (eg. infrastructure) should have a continuing impact, with improving confidence.

How prepared are recruitment agencies for this industry growth? Staffing Industry Metrics data shows that the average cost of employing staff in a recruitment agency still accounts for 50% to 55% of Gross Profit. This is a stubbornly high percentage and risky situation for many recruitment agencies.

The Remuneration Report shows there is very little change in the way consultants work is structured, how consultants are paid and managed. This is despite some pandemic-related adjustments, such as greater flexibility for working from home. Recruitment agency owners need to manage the next phase of headcount growth very carefully to ensure longterm cost structures are sustainable. Don’t undo all the positive strategic work undertaken during this most complex year!

Recruitment agencies can still participate in the live Remuneration Survey – it’s free to participate this year. Those who provide data get their personal dashboard showing their data against the 53 job functions in the industry, viewable in many ways, as well as the written report. If you don’t provide data, you can buy the report. Contact us to see if you are eligible for a discount.

Nigel Harse, nigel@staffingindustrymetrics.com Rod Hore, rod.hore@hhmc.com.au