In terms of Keillar, our figures were slightly down at year end in April 09, though business almost crashed to a halt in May – it was December before signs of the proverbial green shoots were seen beneath the snow! The listed recruitment groups, Michael Page, Adecco and USG People have all said that companies are starting to hire again. Michael Page has, however, cautioned that although 2009 had been the most challenging in its history (with profits plunging by 86%) growth was still very slow in the UK. Like us, they see more growth coming from Asia, especially the Far East. In early March, the Chambers of Commerce reckoned that growth would be less than previously forecast though, again similar to the Recruitment and Employment’s Confederation’s own research, they thought that unemployment would not climb as high as previously feared. This has been echoed by Sir Martin Sorrell, the CEO of the world’s biggest advertising group, WPP, who is not only a very blunt speaker but also in charge of an industry that is an excellent leading indicator. Recruitment is a lagging indicator though and, as such, any rise in activity and revenue is particularly welcome, as it is not only good news for the people getting new jobs but also the economy as a whole. This is partially reflected in our own figures (our third quarter was our best ever) and we currently have a large number of new positions from companies across the financial services board. In 2009 most of the position we handled were replacements and, despite some replacement hires in 2010, the highest proportion are for companies that are moving into new areas, either geographically or in terms of business. These clients span the spectrum of financial services companies, although there are still very few mortgage related roles. One positive, interesting and unforeseen outcome of the European and American crackdown on bonuses has been the increase in recruitment amongst companies that previously might not have had enough money or the desire to recruit new people. It could well be that CEOs, heads of HR and internal management accountants are secretly delighted with the external brouhaha over bonuses as it means that their own costs can be curtailed, with less chance of the affected high-earners disappearing to a competitor. This releases funds that can be utilised to recruit additional less-expensive people. In public they will complain about losing talent etc, though it could be that their views are quite different in the non-minuted privacy of the boardroom. In summary, the economy as seen from the viewpoint of a specialist, permanent financial services only recruitmentcompany is that the economy not only feels better; it is better. That can only be to the benefit of all wishing to get back into employment or who wish to change jobs.
