Forecast for 2009 Recruitment Market from a survey of 60 UK Search & Recruitment companies during Dec' .08 & Jan' .09

1.
Search & Recruitment Market Forecast 2009
Contact: Will Leader
www.mirecruit.co.uk
0207 078 9627

2.
Q2. How will that affect your levels of
A Survey to Forecast 2009:
business in 2009?
A telephone survey was conducted of 60
Search & Recruitment Companies in the UK.
Levels of Business
They were asked to forecast their business in
2009.
in 2009
It was recognised that, in general, 2009 would 40% ‐ No accurate
prediction
represent a more challenging business
environment than in previous years. Companies 30% ‐ Reduced to
60% of 2008
were, at various stages, of responding to this
challenge by adapting their business models. 20% ‐ Reduced to
80% of 2008
Companies were categorised by their specific
actions to give a general picture of how 5% ‐ Exited Search
& Recruitment
businesses planned to adapt to make the most
of 2009. 5% ‐ Increased or
No‐Change
Finally there was a general consensus that
companies who successfully adapted in 2009
would reap enormous rewards when the
economy recovered. Q3. Why will hiring in 2009 be difficult to
predict?
Companies have a less clear picture of their
hiring requirements due to:
• The effects of the correction in the financial
markets not fully realised onto balance
sheets and hiring budgets are unable to be
Q1. How would you describe your hiring confirmed.
market in 2009? • Businesses providing support functions,
cannot predict levels of business activity
• The most common words used to describe
and the lack of liquidity in the market is
the market in 2009 were volatile and
limiting business.
uncertain.
• Contractions in the real economy are adding
• The general outlook was most often
to uncertainty in the financial markets
described as Poor or Difficult in comparison
spreading hiring uncertainty into industry.
with 2008.
• December & January were both already
comparatively significantly slower than Q4. What factors did you use to forecast
2008. reduced levels of business?
• Surviving 2009 would rate as a good year
This market correction was different to past
for the company.
• corrections in that it would affect all sectors and
Difficult decisions to terms of investment
not just a single sector as in the past. The
into companies would be the norm rather
responses were divided by between Public &
than the exception.
© Mirecruit 2009

3.
•
Private, then by Industry Sector & Geographic Construction varied according to country,
Location. with extremes of Dubai & Abu Dhabi whilst
Iraq emerged as a viable alternative.
Private Sector Forecast:
• Security hiring demanded remained robust,
particularly on public contracts, but with
• Hiring freezes and cuts in staff. Initially in
lower overall packages.
roles directly affected by the financial
markets leading followed by increased Q5. What is your business doing about it?
number of cuts in non-fee generating roles.
• Responses to this question varied depending
Reductions in staffing are being driven by
on the size, sector and existing diversification of
companies’ efforts to meet short term costs
the business but the proposed actions could be
targets and balance sheet targets.
• grouped into four categories as shown in the
Significant senior role change as a result.
Matrix below. Some businesses actions had
Public Sector Forecast: responses in more than one category. Others
were pursing an action in one category, and
• Hiring is currently largely unaffected in
then depending on the outcome would, pursue
comparison to the Private Sector. The
a subsequent or addition set of actions.
cause was a combination of the different
source of funding combined with a longer
contract length.
• How Businesses would adapt in 2009
Potential future reductions from a lower tax
take and higher levels of public borrowing.
1. Change/Adapt to 2. Reduce Costs
Market
Industry Sector & Geographic Forecast: Headcount,
Increase Understanding Commissions
• The London market had experienced the of Clients’ business
Fixed Costs &
most immediate slow down due to its Increase contact with Overheads
exposure to the financial sector and this had Candidates
Investment Reduced
flowed through into support sectors and Create/Enhance a USP
industry.
Adapt
• The Middle East had been affected by both Geographic/Sector
the correction in the financial markets and a
Reduce Client Fees
reduction in oil prices. The effect was a
Start Own Businesses
general reduction in the development
investment. This reduction varied from
3. Do Nothing 4. Leave Recruitment
country to country.
• Wait and See Temporarily
Asia was affected by the financial markets
and reductions in demand for goods and Permanently
services as a result of the slow-down slow -
down in the real economies of the US &
Europe.
• Pharmaceuticals’ hiring was mixed
reflecting their financial performance.
© Mirecruit 2009

4.
Summary of Opportunities in 2009:
Q6. Specifically what actions are you taking
in your business?
Good businesses that have always focused on
understanding their clients and retaining the
The specific actions of businesses were divided
trust of their candidates will continue to do well.
between Fee-generation activities and all other
activities related to cost.
Service & Relationships will be more important
as the market moves from opportunity to
candidate rich in converting the fewer available
opportunities.
Recognising and adapting quickly to changes in
your own specific market will determine a large
part of your future success.
An unpredictable hiring market produces
unpredictable income. Look at options of
replace fixed costs with variable costs in all
parts of the operation of your business.
2009 will be the most challenging year to date
for most Search & Recruitment Companies.
Protection of the stakeholders’ investment
should be behind every business decision.
Income: Clients/Candidates/Consultants:
• Consultants to increase contact with Clients,
be closer to the business, improve their
conversion of available opportunities
Mirecruit is a near-source recruitment services company
• Consultants to increase contact with
based in Malta. We have a unique combination of UK-
Candidates, know of moves first, especially experienced staff, close proximity & cost-advantage to
good candidates provide the benefits of out-sourcing with none of the
compromises.
• Deliver better profiled candidates at reduced
fees Mirecruit offers recruitment:
• Research & Consulting
• Invest into new markets & sectors either
from start up or diversification • Administration & Start-up Packages
Will Leader has over 14 years experience in banking,
Costs: Administration/Research/Technology
insurance and outsourcing sectors. Holding roles in
• Reduce Staffing levels, Move Offices General Management, Sales, Operations, Change/Project
Management & Consulting. Will is an under & post
• Reduce Research & Administration Costs graduate in Business & a graduate of RMA Sandhurst.
• Reduce Dividend Payments & Bonuses
© Mirecruit 2009