| KN74142 |
| KEY NOTE Recruitment Agencies (Temporary & Contract) : December 2002 |
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This report covers: temporary recruitment, contract recruitment, secretarial, clerical, computing, IT, financial, technical, engineering, hotel, catering, professional, managerial, nursing, drivers, blue collar,
Companies covered include: Adecco Holdings, The Capita Group, The Corporate Services Group, Hays Personnel Services, Manpower, Nestor Healthcare Group, Pertemps, Reed Executive, Select Appointments, Spring Group,
EXECUTIVE SUMMARY
| This report looks at the temporary and contract recruitment market in the UK. It covers organisation, that recruit on behalf of clients for temporary positions, whether they call themselves recruitment consultants, recruitment companies or employment agencies. |
| According to The Recruitment and Employment Confederation (REC), the market for temporary and contract workers was worth £22.59bn in the year ending June/July 2002, which represents 7.2 percent growth since 2001. The major sectors of the market include nursing and other medical, blue collar and secretarial and clerical. The fastest-growing part of the market has been nursing, medical and driving appointments. There has also been a large rise in financial appointments. The recruitment market as a whole is struggling, and 2002 has so far been the most difficult year in the past 10 years. After several years of high growth, the market has completely slowed down, and there is now considerable pressure on fee rates. As a result, profit margins have reduced throughout the industry. |
| The industry which serves this market is quite a fragmented one. However, there are a number of very large companies in the market. The major firms are: Addeco Holdings (UK) Ltd, Hays Personnel Services Ltd, Manpower PLC, The Corporate Services Group PLC, The Capita Group PLC, Select Appointments PLC, Spring Group PLC, Reed Executive PLC, Nestor Healthcare Group PLC and Pertemps Recruitment Partnership Ltd. |
| The industry is not only concerned about the state of the recruitment market but also by the continuing stream of new legislation, most of which is prompted by more directives from the European Commission. The new Employment Agencies Act looks set to take effect as from June 2003, after 4 years of discussions between the Government and the REC. Meanwhile, the Employment Act 2002 became law in July 2002. Both these pieces of legislation will affect employers and recruitment companies. At present, another legislative development is being discussed. This is the EU Agency Workers Directive. It entitles temporary workers to the same rights as permanent staff in every employing organisation in the UK. The Directive is only at a draft stage but is already the subject of intense lobbying by UK employers and UK recruitment companies. |
| Key Note anticipates a low growth rate in the market for 2003, compared to previous years, and it is likely to leave many recruitment companies suffering. In 2004, Key Note expects the market to improve a little further. |
TABLE OF CONTENTS
| 1. Market Executive Summary | 1 |
| Definition | 2 |
| report coverage | 2 |
| MARKET SECTORS | 2 |
| Temporary Contract Workers | 2 |
| Contract Workers | 3 |
| Permanent Work | 3 |
| Recruitment Subsectors | 4 |
| MARKET TRENDS | 4 |
| MARKET POSITION | 5 |
| The UK | 5 |
| Table 1: The Temporary and Contract Staff Recruitment Market Within the Overall Recruitment Market by Value of Invoiced Business (£bn and percent), Years Ending June/July 1997-2002 | 5 |
| 2. Market Size | 7 |
| INTRODUCTION | 7 |
| THE TOTAL MARKET | 7 |
| By Value | 7 |
| Table 2: The UK Temporary and Contract Staff Recruitment Market | |
| by Turnover (£bn), Years Ending June/July 1998-2002 | 7 |
| By Volume | 8 |
| Table 3: The UK Temporary and Contract Staff Recruitment Market | |
| by Volume (number of placements), Years Ending June/July 1998-2002 | 8 |
| BY MARKET SECTOR | 9 |
| Nursing and Other Medical | 9 |
| Blue Collar | 9 |
| Secretarial and Clerical | 9 |
| Drivers | 9 |
| Computing and IT | 10 |
| Technical and Engineering | 10 |
| Education | 10 |
| Hotel and Catering | 10 |
| Financial | 11 |
| Professional and Managerial | 11 |
| 3. Industry Background | 12 |
| RECENT HISTORY | 12 |
| NUMBER OF COMPANIES | 12 |
| Table 4: Breakdown of the Leading 195 Recruitment Companies | |
| by Turnover and Number | |
| of Companies (£m), 2002 | 13 |
| Table 5: Number of VAT-Based | |
| UK Enterprises Engaged in Labour Recruitment and Provision of Personnel by Turnover Sizeband (£000), Years Ending December | |
| 2000 and 2001, and June 2002 | 14 |
| EMPLOYMENT | 15 |
| REGIONAL VARIATIONS in the marketplace | 15 |
| How Robust is THE MARKEt? | 15 |
| LEGISLATION | 16 |
| KEY TRADE ASSOCIATIONS | 17 |
| The Chartered Institute of | |
| Personnel and Development | 17 |
| The Recruitment and Employment Confederation | 17 |
| The Recruitment Society | 17 |
| 4. Competitor Analysis | |
| THE MARKETPLACE | 18 |
| Table 6: The Leading 20 | |
| Recruitment Companies in the UK by | |
| Turnover from Recruitment Activities | |
| Placed, 2002 | 18 |
| Table 7: The Leading Companies in the UK by Number of Temporary | |
| and Contract Workers, 2002 | 19 |
| MARKET LEADERS | 19 |
| Table 8: Selected Leading UK Recruitment Companies by | |
| Turnover (£m), 2000/2001 | 20 |
| Adecco Holdings (UK) Ltd | 21 |
| The Capita Group PLC | 21 |
| The Corporate Services Group PLC | 22 |
| Hays Personnel Services Ltd | 22 |
| Manpower PLC | 23 |
| Nestor Healthcare Group PLC | 24 |
| Pertemps Group Ltd | 24 |
| Reed Executive PLC | 25 |
| Select Appointments PLC | 25 |
| Spring Group PLC | 26 |
| Other Companies | 27 |
| ADVERTISING AND | |
| PROMOTION | 27 |
| Table 9: Main Media Advertising Expenditure of the UK Recruitment Industry (£000), Years Ending December 2001 and June 2002 | 28 |
| Table 10: Main Media Advertising Expenditure by UK Online Recruitment Companies (£000), | |
| Years Ending June 2001 and 2002 | 29 |
| 5.Strengths,WeaknessesOpportunities and Threats | |
| THE TOTAL RECRUITMENT INDUSTRY | 30 |
| TEMPORARY AND CONTRACT RECRUITMENT | 31 |
| 6. Buying Behaviour | |
| BUYERS’ REQUIREMENTS | 32 |
| CHOOSING AN AGENCY | 33 |
| 7. Current Issues | |
| MARKET CONDITIONS | 34 |
| INTERIM MANAGEMENT | 34 |
| CORPORATE ACTIVITY | 34 |
| IR35 | 35 |
| THE EMPLOYMENT AGENCIES ACT | 36 |
| FIXED-TERM CONTRACTS | 37 |
| 8. The Global Market | |
| THE Largest Markets | 38 |
| European attitudes | 38 |
| 9. Forecasts | |
| INTRODUCTION | 40 |
| Forecasts 2003 to 2007 | 40 |
| Table 11: The Forecast UK Temporary and Contract Staff Recruitment Market by Turnover (£bn), Years Ending June/July 2003-2007 | 41 |
| FUTURE TRENDS | 41 |
| The Employment Act | 41 |
| The EU Agency Workers’ Directive | 41 |
| A More Complex Market | 42 |
| 10. Company Profiles | |
| Adecco Holdings (UK) Ltd | 45 |
| The Capita Group PLC | 47 |
| The Corporate Services Group PLC | 49 |
| Hays Personnel Services Ltd | 51 |
| Manpower PLC | 53 |
| Reed Executive PLC | 55 |
| Select Appointments PLC | 57 |
| Spring Group PLC | 59 |
| 11. Further Sources | |
| Associations | 61 |
| Publications | 62 |
| Directories | 64 |
| General Sources | 64 |
| Bonnier Information Sources | 65 |
| Government Publications | 66 |
| Other Sources | 67 |
| Understanding TGI Data | 69 |
| Number, Profile, Penetration | 69 |
| Social Grade | 70 |
| Standard Region | 70 |
| Key Note Research | |
| The Key Note Range of Reports |
Text © 2002 Key Note
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Last updated by Amanda Porteous February 2004
