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Shout99 - Freelancers, FO35, Section 660
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Shout99 - Freelancers, FO35, Section 660
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Construction Industry

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Small recruitment companies worried about prospects
by Susie Hughes at 17:51 03/04/03 (News on Agents)
Recruitment agencies expressed major concerns about the short-term prospects for the industry at the recent annual 'Small Business Conference' of the Recruitment and Employment Confederation (REC).
Over 200 members, including a large number of IT recruiters, joined together to discuss the future of the industry and hear key industry figures offer their advice.

In surveys taken at the conference, members were asked what was the biggest threat to their business in the next 12 months. Thirty-seven per cent said increased competition and depressed markets was the biggest threat, with 32 per cent naming increased regulation and 32 per cent recession.

The proposed national insurance increases are also concerning the industry, with nearly half saying it would have a negative impact on demand, although 84 per cent said they would be passing on the increase to clients. Almost three quarters said the national insurance increases and proposed changes to employment law would reduce their profitability.

The standing of the industry was also a key concern, with 60 per cent saying there needed to be a greater emphasis on standards, although 66 per cent percent also believed the industry was perceived to be striving to be professional.

Toni Cocozza, Chair of the REC's IT Division said: "It was great to see so many members attending the conference at a time when they are obviously very concerned about the state of the economy. I know from experience that sharing and hearing others' experience of dealing with a tough economic climate can be incredibly useful. I was delighted to have the opportunity to hear the concerns and hopes of so many within the industry."

REC is the association for the 23 billion private recruitment and staffing industry in the UK, with over 6,000 recruitment agencies and over 8,000 recruitment consultants in membership.

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Susie Hughes Shout99.com 2003

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