Nigel Harse reports only 1 in 5 agencies capitalised on strong market conditions

Authored By Mr Nigel Harse

When it comes to sales, Australian recruitment agencies had an outstanding year in FY19. The first two quarters delivered record breaking sales across both the temp/contract and permanent revenue streams. This growth continued throughout the year despite some major challenges, including the federal election.

Considering sales were sky high, you'd expect profits to also peak. However, when we analysed the results of 104 Australian recruitment agencies, this wasn't the case. Despite market conditions being the best in recorded history, only 1 in 5 recruitment agencies increased their profit in FY19. That means around 80% recorded a decrease in profit.

The reason for the surprising results can be attributed to two main factors a decrease in productivity and an increase in operational costs.

Click here to read more statistics and facts regarding the productivity slump, budget blowout and tips on how to avoid the FY20 profit pitfalls.

Email: nigel@staffingindustrymetrics.com to access the $1,000 saving for APSCo Members who participate in Staffing Industry Metrics

Related Blogs:

What do a robust business strategy and engagement have in common?

Nigel Harse links success to leaders driving values

At the crossroads or heading for a collision …..two reports you must read