Tuesday, 18 August 2009

Hard times for recruitment consultancies


Michael Page, who are one of the largest recruitment consultancies in Britain, have announced that their profits over the first six months of 2009 have fallen by 49%, leading to the worst set of financial figures reported by the company since they were listed on the UK stock market eight years ago. Although the company still employ nearly 4000 staff, they have had to reduce their workforce by more than a third since the beginning of this year. Clearly they blame the downturn in the labour market for their performance, and there is no immediate hope at the end of the tunnel as the summer period is renowned for being a quiet time for recruitment.

  • What practical steps can recruitment consultancies take to ensure that their business remains viable?
  • Why might companies that are recruiting choose to manage the process themselves rather than engage a recruitment consultancy?
  • What businesses other than recruitment consultancies are likely to be affected by a downturn in the job market?
  • What businesses and organisations may be required to recruit additional staff as a result of an increase in joblessness?
  • Despite reporting such a dramatic drop in profits, shares in Michael Page went up rather than down. Why might this be?

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