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More firms have entered the industry to capture the high profit margins. For this reason, industry research firm IBISWorld has added a report on the Executive Search Recruiters industry in Australia to its growing industry report collection.
Melbourne, Australia (PRWEB) March 17, 2013
The Executive Search Recruiters industry has grown after a downturn in 2008-09 caused by the global financial crisis. The industry rebounded after Australian businesses focused on restructuring and cost minimising to remain profitable in the post-global financial crisis landscape. Businesses have increasingly outsourced recruitment to find the best employees. The recruitment of executive positions has similarly grown, although this segment makes up a significantly smaller proportion of hiring. Business have used specialised executive search recruiters to help find management staff that can achieve more with less and understand emerging markets.
According to IBISWorld industry analyst Jeremy Edwards, “industry firms need to understand the digital world, as they are required to find prospective executives with strong understandings of online systems. Also, firms compete with online-based recruitment sites such as Seek.”
The industry has grown by a compound annual rate of 3.0% in the five years through 2012-13. The industry is expected to continue growth by 3.5% in 2012-13, to $398.2 million, as business confidence improves.
“A number of new businesses have entered the industry over the past five years due to the industry's success and sustained high profit margins,” says Edwards.
Enterprises have grown by a compound annual rate of 2.3% over the five years through 2012-13, as new players enter the industry to capture a share of high profit margins.
The Executive Search Recruiters industry is expected to continue to succeed over the next five years, as overall business conditions improve. Business confidence is expected to rise and investment is likely to increase, as interest rates remain low over the next two to three years. Expectations continue to grow for businesses using industry firms, as they outsource executive recruitment in the belief that industry firms will be able to provide executives with the best backgrounds for the role.
Consulting companies are expected to place increased pressure as they become more involved in the industry. Furthermore, wage costs are expected to rise, as firms attempt to retain the best employees. This is likely to somewhat deter employees from leaving and starting boutique recruitment firms.
The four largest players in the industry are Chandler Macleod Group Limited, Hays Specialist Recruitment (Australia) Pty Limited, Manpower Services (Australia) Pty Ltd and Randstad Pty Limited.
For more information, visit IBISWorld’s Executive Search Recruiters report in Australia industry page.
Follow IBISWorld on Twitter: http://twitter.com/#!/ibisworldau
IBISWorld Industry Report Key Topics
This industry provides executive search, recruitment and placement services for clients with specific executive and senior management requirements. Industry firms develop a search strategy and position specification based on the culture and needs of a variety of businesses. Operators are involved in the research, screening, interviewing, contract negotiations and company assimilation of employees.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.
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