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Recruitment | Demand falls, pay jumps

A big week for recruitment specialists, whose numbers are growing thinner by the day, although those left behind sure are well-rewarded.

Figures out last week found the number of recruitment firms going bust has skyrocketed.

Business consultancy Deloitte studied administration figures dating back three months, which highlighted a 12% increase in the number of firms going bankrupt across all sectors from 631 between April and June 2008, to 707 between July and September.

But it was in the recruitment and business services sectors that saw the biggest jump in bankruptcies, up an exceedingly high 266% on last year.

Lee Manning, reorganisation services partner at Deloitte said it came down to businesses looking to streamline costs, meaning less demand for temporary staff.  This was reflected in an increase of two-thirds in recruitment agencies alone falling into administration.

But then there's the annual Chartered Institute of Personnel and Development and Croner Reward pay survey, which found HR professionals with senior level recruitment positions were paid 11% more than others at that level. Last year they were just 4% above average, so this represents a pretty big jump in more than just salary.

Still, they're not yet at the top, as reward and compensation professionals remain the highest paid specialists, earning 18% above average senior management HR salary of £45,000.

Charles Cotton, reward adviser at the CIPD, says that although many employers are looking to cut back on their head count, they are still looking to recruit individuals at all levels, meaning recruitment professionals will remain in demand for the foreseeable future.

He said employers will always need those with the right skills, knowledge and attitudes to lead them through economic turmoil, and emerge ready to capitalise on a future recovery.

No forecast for when that is, however.

Guy Logan |

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