INTERVENTION DU REPRESENTANT DU SYNDICAT ANGLAIS / AER Paul HARPER.

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Presentation transcript:

INTERVENTION DU REPRESENTANT DU SYNDICAT ANGLAIS / AER Paul HARPER

The UK Search & Selection Market 2005

Association of Executive Recruiters The UK’s largest Association for Executive Recruiters (Head-hunters) Represents 48 head-hunting consultancies

Market Growth – Whole permanent market (UK) Number of consultants: 21,706 (just perm) 18,257 (temp and perm) Number of placements: 654,203 Number of companies: 1, /3£1.6bn€2.33bn* 2003/4£1.7bn€2.48bn*+6% 2004/5£3.2bn€4.67bn+88% * Possibly under reported in previous years

Lack of UK Search & Selection Information Information on Search & Selection is hard to obtain There is no legal definition so any company can call itself a Search & Selection firm

Typical Fee Structures (UK Search & Selection) Typical Fee 30-33%* of salary –1/3 payable on instruction –1/3 payable on shortlist –Balance on appointment of candidate *Often reduced for major corporate deals (estimated 25%) Fee capping may occur typically at £125,000 (€187,500)

The UK Market Declined 3 years Recovery Market sentiment indicates further improvement 2006 and 2007

UK Legislation Continual development of Anti Discriminatory legislation Sex Discrimination Act 1975 Race Relations Act 1976 Disability Discrimination Act 1995 Sex Discrimination (Gender Reassignment) Regulations 1999 The Employment Equality (Religion or Belief) Regulations 2003 Employment Equality (Sexual Orientation) Regulations 2003 Employment Equality (Age) Regulations 2006

UK Market Overview Approximately 700 firms are listed in Executive Grapevine. All claim to work mainly with individuals whose salaries are £50,000+ (€75,000+) Total industry figures not known but Executive Grapevine survey of 188 Search Firms working predominantly over £100,000 (€150,000) The firms employ 1,400 consultants and 600 researchers Net fee income +12.8% in 2005

Assignments by Salary Range (UK) Source: Executive Grapevine Source: Executive Grapevine

Headcount in Executive Search Firms (UK) Source: Executive Grapevine Source: Executive Grapevine

Number of Assignments per Consultant (UK) Source: Executive Grapevine Source: Executive Grapevine

UK Market Analysis Consultant Assignments per year8.3 (+3.4%) Market Growth (net fee income) +12.6% Number of Assignments-7% Number of consultants reduced Source; Executive Grapevine

Sector Share of Net Fee Income (UK) Financial Services45% Technology Media & Telecoms14% Consumer and Retail13% Industrial12% Professional Services7% Healthcare and Life Sciences5% Not for profit3% Executive Grapevine

UK Trends Top 5 reducing share of the market while specialists gain at their expense Shortage of candidates means total fees have risen because Margins have risen Salaries have risen

UK Trends Some growth in on-line recruitment and In House Search General drive to Outsourcing appears to be reversing at the Executive level Closer regulation seems unlikely in the near future