Recruiting Business Up Nine Percent
May 13, 2015 – May 1, 2014 (Greenwich, Connecticut) — Hunt Scanlon Media today released its annual rankings of U.S. executive search firms. Overall, according to Hunt Scanlon, the recruiting industry grew nine percent for the year, topping out at $2.3 billion in revenue among the company’s ‘Top 40’ rankings list.
“With few exceptions nearly every firm reported positive gains,” said Hunt Scanlon’s chief executive Scott A. Scanlon. Mr. Scanlon said that 35 percent of the firms on his company’s list this year reported double digit increases and 10 search firms reported growth rates of 20 percent or more. “All in all, it’s been a spectacular run for recruiters,” he said.
But finding talent is not getting easier for recruiters, according to the Hunt Scanlon ranking’s report published this month in the company’s flagship publication Executive Search Review. “Talent acquisition clients are demanding more, in shorter time frames, in an increasingly expansive – and competitive – universe,” said Mr. Scanlon. “Given increased competition from a variety of sources, search firms must justify their existence through search results that cannot be duplicated by social media sources or internal recruiting teams.”
Much of the industry disruption that Mr. Scanlon said that he sees is occurring for search assignments below the C-level – roughly executive-level positions that earn under $300,000 in annual compensation. But as access to information, and talent, is democratized through sources like LinkedIn, the importance of recruiting expertise is emphasized more, he said. “Companies are more likely to engage search firms for key roles and difficult searches for positions they need to fill ASAP,” said Mr. Scanlon. “I think the industry realignments benefit smaller search firms and pose threats to the larger firms that have traditionally relied on their network and junior search consultants to execute assignments.” This might explain why the larger recruiting outfits are moving toward offering tangential talent and leadership services beyond their basic identification services, said the report.
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