Ask a recruitment-to-recruitment firm how things are going and they are sure to tell you they are busy. But probe a little deeper and you’ll find all sorts of different types of ‘busy’. Where six months ago consultants were hurrying to get candidates into firms who were clamouring for new talent, nowadays they may be busy seeing unsuitable candidates recently made redundant, hunting for the perfect candidate for their exacting clients or trying to win business off their competitors. It’s a much tougher type of ‘busy’, pushing many recruiters into difficulties, and requiring a whole new breed of rec-to-rec consultant. The last three months of 2008 saw many recruitment firms in trouble, with widespread redundancies, and several firms taking desperate measures to struggle through. One professional told Recruiter: “Some companies are asking staff to take a pay cut: one is cutting base salaries by 35%.”

Understandably in this environment, recruiters — like their clients — aren’t taking so many new staff on. Tim Connolly, managing director of rec-to-rec firm A La Carte Search and Selection, says: “It has been noticeably quieter over the last three months since September.” Even those clients who aren’t reducing headcount are holding back. He adds: “There’s a large section of clients who are doing alright, but are holding off recruitment because they’re being cautious. They’ve been reading the papers too much and they are worried about what’s round the corner. There are a lot of clients in that bracket.”

By contrast, there are loads of candidates around, but that doesn’t make life easier, as rec-to-rec firms are having to work just as hard as ever to find the few gems among the masses. Fiona McDonald, recruitment manager at Wilkinson Hindle, says: “There are recruitment consultants in the marketplace who have been let go for a reason — they weren’t hitting their targets. So a large proportion of people on the market aren’t the ones you want to be working with. There are exceptions, such as good recruiters who may have been working for a regional office which has been closed, but there are a lot who aren’t up to the job now.” Greg Moy, a director of Agenda Recruitment, agrees: “Companies are getting rid of a lot of rubbish in this market.”

Finding good candidates remains tricky, and at the same time recruiter-employers are being far more demanding. Nick Bancroft, managing director of McCall, says: “Clients are being very choosy about the types of candidates they take on.”

Non-billing roles have dried up. Jo Palmer, manager for Heywood Associates, says: “Strategic roles are nonexistent and there aren’t a lot of account management roles around; companies don’t want non-billing staff.” Not only that, but billers have to be prodigious.

Connolly explains: “Six months ago you may have been able to place a good candidate who could deliver £125,000 to £150,000 — a ‘Steady Eddy’ type. Now, because of the downturn, they need someone much better. Things may get worse, so they need a £200,000 biller with a very stable track record. They won’t take second best.”

Candidates also need to be able to generate business. Palmer says: “They are looking for people with strong new business ability.” Partly for that reason they are only willing to take people on with relevant experience. Palmer explains: “They want sector experience because they are hoping people will be able to utilise previous relationships.” McDonald agrees: “Previously a client may have said they want an experienced recruiter regardless of discipline. Now they are being specific. They want someone who has been in the sector.”

And more alarmingly, even when rec-to-rec firms have tracked down that illusive candidate, clients are starting to back out. Connolly says: “We haven’t had anyone put a role on hold, but some of our competitors are talking about it happening to them. Some of them are saying payments are getting a bit slower too.” So much of this busy work is resulting in nothing.

As a result, rec-to-rec firms are having to look harder for new business. Fortunately, as Connolly says: “There is business out there, you just have to be more proactive about how you go about it.”

There are still sectors doing well. Connolly says: “Some recruiters are doing phenomenally, such as pharmaceutical recruitment firms. One client in the pharmaceutial sector has 20 staff and is looking for another six. Other sectors are doing OK, such as IT.” Palmer adds: “Public sector recruitment remains strong. One sector that is quite buoyant is recruiting into the sales sector, such as telesales, because people are struggling for sales leads.”

The need to generate new business, and the changing patterns of demand, means some rec-to-rec firms are growing. Moy says: “We are getting a new guy in January. He’s young and hungry.” Connolly is also looking for staff: “There are fewer clients recruiting, but we’re busy fulfilling and growing our client base.” Rec-to-rec firms are also being creative, offering new services. Connolly says: “We are broadening our offering for the clients who are being cautious. We are offering interim people who come in for a few days at a time. We never thought of doing it before because clients want the continuity of a permanent person and they wouldn’t want it normally, but they are busy and they don’t wantpermanent staff, so they may want someone in for three or four days working solely on business development, for example.”

Others are expanding the non rec-to-rec parts of their business, to take surplus recruitment candidates. Moy says: “We are looking for new people on the sales side. We want candidates who are seeing us on the rec-to-rec side to also consider sales roles, such as field sales or media sales, so they have opportunities on both sides.”

However, there will be more casualties to come. Bancroft says: “The rec-to-rec sector will become smaller. We are moving from a candidate-led to a client-led market. Candidates are registering with more agencies, so clients can use fewer rec-to-rec firms and still see all the talent that’s out there, so the industry will contract.”

With more trouble still to come, and more companies to go by the wayside, rec-to-rec experts are keeping busy in all the right ways; winning the business and convincing clients to be bold. Those occupying themselves in less lucrative ways may find themselves rather less busy in
the coming months.