RCSA Research: Recruitment industry strong

The Australian and New Zealand recruitment and on-hire industries earned approximately $16 billion in the last financial year, according to the latest research by the Recruitment and Consulting Services Association. It is a revenue figure supported by industry superannuation fund RecruitmentSuper.

The RCSA Membersí Staffing and Revenue Report from July also revealed that staff turnover was at an average of 27.9 per cent, while staff growth within Member companies was at an average of 9.94 per cent.

ìThis combination of a reduction in staff turnover and an increase in staff growth, combined with strong revenue figures, is an indication of a healthy industry,î said Julie Mills, CEO of the RCSA.

ìThe industry is attracting people, and keeping them,î she said.

Staff Turnover and Growth
Staff turnover has steadily declined, from 31% in August 2005 to 24% in June 2006, while staff growth has increased, from 9.4% in August 2005 to 14.4% in June 2006.

ìOver the longer term, both these trends have continued, and we have seen the first period of consistent staff growth since 2003,î said Ms Mills.

Value of Services
Recruitment services for permanent placements provided greater value to Members. While full-time placements accounted for seven per cent, and part-time placements just one per cent of employees placed, combined they represented 44 per cent of revenue.

The majority of placements is for on-hired employees, which made up 89 per cent of placements. On-hired employee services provided 40 per cent of revenue to Member companies, while contractor services provided nine per cent of revenue.

Recruitment services provided an average of 44 per cent of revenue to Members between August 2005 and June 2006.

ìConsistently over the past year, Members have drawn greater revenue from placing permanent positions than providing on-hired employee.

ìThis shows a strong economy, with businesses having enough strength in them to take on permanent employees, rather than making use of the flexibility offered in on-hired employment arrangements,î said Ms Mills.

Value of Regions
The highest value region for Members is New South Wales, which generate 22 per cent of Member revenue. However, 42 per cent of Members operate in that state.

New Zealand is the second highest value Region, contributing 16 per cent of annual revenue; however, Victoria is the second largest Region for operations. Victoria is the third highest value Region.

With only two per cent of Members operating in Tasmania, but generating four per cent of total revenue, the returns in that state are the best of all the regions.

Returns in Victoria are lowest, with 34 per cent of Members operating in that state, yet contributing 14 per cent of total revenue.

The RCSA Membersí Staffing and Revenue Report
The RCSA Membersí Staffing and Revenue Report is an annual review of the revenue, staff numbers, placements and demographics of the RCSA Membership. It is based on ongoing quarterly surveys of Members.

This report covers the ìDemographics; Staff Turnover and Growth; Staff Placed and On-hired Workers; and Proportion of Revenue for On-hired, Recruitment and Contractor Servicesî sections from the 16th to the 19th surveys of RCSA Members in a tracking study that started in September 2001. The respondents are business managers from the RCSAís Membership across Australia and New Zealand, and represent approximately 14% of the Membership.

The RCSA Research Foundation is supported by RecruitmentSuper, and commissions regular surveys of Members and other research projects. The RCSA Membersí surveys are conducted each quarter through a secure Internet site by independent market research company, The Values Bank Research Centre. Brent Taylor, Principal of The Values Bank, has over twenty years experience as a market researcher carrying out assignments for a diverse range of private sector and government clients. He is a member of the Australian Market and Social Research Society and has society quality accreditation (Qualified Practicing Market Researcher), has a Bachelor of Arts (Psychology Honours) and a Bachelor of Engineering (Honours). The Values Bank adheres to the ICC/ESOMAR International Code of Marketing and Social Research