Net fee income up year-on-year but financial growth slows
The fifth annual UK Recruitment Index from Deloitte and the Association of Professional Staffing Companies (APSCo) found that while the majority (64 per cent) of recruiters saw net fee income (NFI) increase over the last 12 months, the share of respondents experiencing growth in NFI is at the lowest level since the report was launched.
The report also reveals an increasing trend towards new European offices, with 14 per cent planning to expand in the continent over the next 12 months. This marks a notable increase since last year’s report, when just 5 per cent of respondents planned to open hubs in mainland Europe.
The study of 100 companies from the business advisory firm and the professional recruitment trade body also indicates that churn among recruiters has impacted productivity. On average, recruiters saw 26 per cent churn of fee earner staff that had been with the business for less than 12 months.
Challenges around talent were also evident elsewhere, with 74 per cent citing learning and development as a priority for investment and 71 per cent stating the need to upskill employees as a significant barrier to growth. By comparison, just over half (55 per cent) identified the impact of Brexit as a key challenge.
Katie Folwell-Davies, financial advisory partner and lead partner for human capital services at Deloitte said:
“The latest results indicate overall continued growth in the UK recruitment sector. While the majority of recruitment firms report increasing net fee income for their most recent financial year, the pace of growth seems to have slowed, with the lowest proportion of recruiters reporting increases in net fee income in the survey’s history. This may be attributed to a decrease in corporate risk appetite in an uncertain market.”