The UK staffing sector’s reputation for high staff turnover levels is unwarranted, a new study suggests.
Research from business advisory firm Deloitte and the Association of Professional Staffing Companies (APSCo) reveals that the average employee ‘churn’ rate in the recruitment sector is between 12% and 19% depending on tenure. This is well below the national average of 25% for all sales and services businesses.
This stability has helped the industry report an average income growth of 12% when compared to the previous year, with more than 80% of firms posting an increase. In addition, almost a third (30%) of businesses said they plan to open more offices in the next 12 months.
In addition, the study found that recruiters were busy planning for the future, with 98% of firms looking to train and develop their staff. This, they predicted, would be the most important factor in securing growth – ahead of investing in new technology and expanding their branch network.
It wasn’t all good news, however, as 62% of respondents reported difficulty accessing the skills needed to cope with growth. This has made the sector increasingly competitive and forced business to provide a more appealing package of benefits as they try to attract and retain talent.
Ann Swain, APSCo’s chief executive, said: “It is ironic that as a profession, while we are excellent at identifying and attracting talent for our clients, that success often isn’t replicated within our own businesses.
“If the profession is to achieve its true growth potential then it must aim to achieve the same ‘employer of choice’ status within the graduate community as other major professions enjoy.”
Have your say
Are you a recruiter? Have you noticed an increase in revenue? Do you expend this trend to continue? How will you prepare for future growth? Join in the discussion on Twitter, or leave a comment below.