Doom and gloom for many recruitment firms, who can leave the storm growing?

2011 recruitment industry 150Recruitment Industry sees 250 companies listed in the ‘Danger’ category leaving  the recession

A new report from industry analysts Plimsoll indicates that the recession has hit many businesses in the recruitment industry hard, with many struggling to compete in the turbulent financial conditions.

Plimsoll has rated the performance of a thousand companies in the recruitment industry, rating them from 'strong' to in 'danger'. From their study they indicate that a quarter of businesses (250 businesses) are listed as in the 'danger' category, these businesses face the very real prospect of failing in 2011. It is not however all doom and gloom, many businesses have faired better during the recession, Plimsoll has rated over 500 businesses as strong, these businesses have come through the recession in good shape and are likely to capitalise on the failures of others.

Plimsoll indicate that recruitment companies must be actively looking to grow their business if they are to survive,  identifying new growth opportunities will be vital in 2011 in a slow growth market. Businesses that do not grow are likely to find themselves ousted from the market as they will simply not be competitive.

One area of recruitment that expected to grow in 2011 is sales recruitment, with recruitment expected to rise in London according to results published in a London Business Survey by the Confederation of British Industry; 45% of businesses are planning to recruit staff as normal, up 11% on last year. There has also been a reduction in those freezing recruitment with only 16% freezing recruitment down from 26% in 2010.

These results reflect research carried out previously by Orange that indicated 26% of small/medium businesses, including sales businesses, expected to increase their workforce in the next 12 months.

Sales recruitment it seems will be going from strength to strength.

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