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Salaries Down But Consultants Not Out
The Recruiter Magazine 28 October 2009
It will come as no surprise that the trend in salaries for researchers and fee earners in executive search and interim management firms has continued to turn south or at best remain static, according to Heywood Search’s Salary Survey 2010.
There are very few examples of basic salaries having increased and there are many examples where these have been cut and bonuses and commissions scrapped due to falling revenues. In fact, salaries, OTEs (on target earnings) and fee income are similar to levels attained back in 2004.
Encouragingly, during Q2 and Q3 of 2009, there has been improved positivity in the market and a meaningful number of firms starting to look for researchers and fee earners, clearly indicating the start of an improvement. There was also a significant appetite for financial services fee earners in Q3, 2009.
The worse performing sector has been financial services, although while some firms have had to cut back, others have bucked the trend and continued to hire. The exception to the cutbacks has been within the not-for-profit (NFP) and interim management sectors, where demand has remained consistent, and above average income and bonuses are being achieved.
Salaries for researchers and junior fee earners have remained static, although basic salaries for more experienced fee earners have fallen marginally. NFP and interim management fee earners have enjoyed a better year, even though in most cases revenue has not increased.
With financial packages reduced and firms focusing on the survival of their businesses, salaries are not expected to increase until Q3 next year Successful search consultants remain open to hearing about new roles, although given the economic climate, they are considerably more cautious than in previous years. There are also a number of experienced researchers seeking roles but at the moment, some firms are considering these to be a luxury. Opportunities have to be exceptional to persuade a successful candidate to move. Interestingly, the trend highlighted in last year’s survey regarding an increase in overseas moves, in particular to the Middle East and the Far East, has all but disappeared. It is unlikely that this will be an attractive option to experienced fee earners and researchers until Q3 2010.
Historically, those firms that did not review their staff packages upwards were in danger of losing their biggest generators. Today, with financial packages reduced and firms focusing on the survival of their businesses, salaries are not expected to increase significantly until Q3 2010. From a search-to-search perspective and as a result of the financial climate, the search sector has become more client-driven, although this position is not expected to continue after Q2 2010. Stiff competition continues to attract the best fee earners and researchers.
The timescales for interviewing have in general increased, although the number of interviews in most sectors preoffer has remained the same. This indicates a more cautious approach by hiring clients. At all levels recruiters have remained with their current employers for an increased length of time against those surveyed last year.
Commission structures have remained competitive to accommodate good fee earners and bonuses of up to 40% based on a tiered system of personal fee income are not unheard of. Fee income overall has fallen significantly against that of 2008 and 2009, and fee earners have suffered from significant lower take-home pay and bonuses than last year.
Putting all this aside and ignoring the large falls in revenue and bonuses, executive search as a career remains financially lucrative.
General trends
Increased maturity in the interim management sector
Demand for financial markets search, which was the first sector to be affected in the downturn, has been the first to recover
Take-home pay has fallen for executive search recruiters and researchers
Redundancies and pay cuts were commonplace in 2008 and this is continuing this year. A cautious approach to hiring is expected in 2010
confidence in the market is lower in certain sectors but opportunistic growth continues for some established firms
One to three job opportunities exist for experienced recruiters
Financial guarantees and golden hellos are rare
Fewer salary cuts and reduced bonuses are expected in 2010
The figures outlined reflect data supplied to Heywood from 846 executive search and interim management firms and 772 executive search and interim management specialists across the UK. Heywood Search has also incorporated data obtained from more than 76 of its assignments between June and October 2009.
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Recruiters’ basic salaries hit by downturn
The Recruiter Magazine - 16 October 2009
Clients are more cautious in hiring and this has led to an adjustment in the basic salaries on offer to recruiters, according to the latest Heywood Associates Recruitment Salary Survey.
During the recession, a high number of consultants have experienced a reduction in basic salary, and commission payments were stopped. Candidates can no longer expect to receive a guaranteed pay rise on changing jobs, and consequently they need to review opportunities to ascertain whether career progression and OTE is a better option than that which they are currently receiving.
Simon Gee, managing director of the Heywood Group, says: “Recruiters appreciate that they are working in tough conditions, yet the recruitment sector as a whole remains financially lucrative compared to other sales-focused sectors. The fact remains that we will need to work harder this year just to stand still. Longevity of service has remained the same over the past 12 months.”
According to the survey, the static market has driven a number of trends including:
• continued demand for the professional services sectors
• increased competition in less populated sectors such as commercial, human resources and legal
• all seven key recruitment sectors have indicated a fall in demand for their products
• sustainable growth is not expected until Q2 2010, although experienced, strong fee earners will always be in demand
• clients are taking longer to make hiring decisions and basic salaries are not increasing
• financial guarantees are rarely offered.
The survey draws on an overall sample of 2,383 recruitment firms and 4,280 recruitment specialists across the whole of the UK.
• See Market indicators, Recruiter 28 October issue, for Heywood Search Salary Survey for details of the survey on the executive search and interim management sectors.
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Send Us A Tweet - Heywood Joins Twitter
Heywood Associates, the London based recruitment to recruitment firm has set up a Twitter account and can be followed at: 'heywoodassoc'.
Commenting on this facility, director Simon Gee said: "We have set up an account with Twitter to enable us to create another medium in which to keep in touch with our candidates and clients. By following 'heywoodassoc', you will find out what we are up to, the latest trends in the recruitment sector as well as details on our latest jobs. We also want to know what you're up to as well."
Gee continued: "Twitter is growing in popularity on a daily basis and we have to embrace this technology. The more ways we can reach our candidates and clients the better - particularly now the market is improving and there are lots of great opportunities."
Heywood Associates is a market leading recruitment to recruitment consultancy. Established in 1996, Heywood Associates focuses on the Accountancy, Banking, Commercial, Legal & IT recruitment sectors across the UK, Asia, Australia and Middle East. Heywood is a founding member of the R2R sector group within the REC.
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Rec-to-rec recruiters lose fees to new points-based immigration
The Recruiter - 22 December 2008
Rec-to-rec recruiters have missed out on fees because agencies are not licensed under the recently launched points-based immigration system. Tier two for skilled workers was launched on the 27 November and requires companies to have a sponsorship licence to employ immigrants from outside the EU.
Jo Palmer, manager at rec-to-rec recruiter Heywood Associates, told Recruiter she was “devastated” when she was unable to place a consultant because her client did not have a sponsorship licence yet.
The South African consultant, who wishes to remain nameless, told Recruiter that she has had to change her career goals after having to turn down the job offer. “I have re-focused my job role because I was so unhappy. It has affected the growth I was looking for in my career, but I have taken a very favourable lateral step and it has allowed me to discover what I want from my current role.”
Under the new rules companies wishing to sponsor workers from outside the EU need to contact the Home Office and apply for a licence.
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November 2008 ICAEW & ICAS Results Released
The results of the latest ICAEW and ICAS examinations are now out and from 6 January 2009 we will be emailing details of these new candidates to our clients. The November 2008 Pass Lists are the biggest we have seen for several years.
Our subscribers range from the major finance recruiters through to small niche agencies. Special deals are available on 6 and 12 month subscriptions so if you regularly place newly qualified accountants, this is a deal you shouldn't miss!
For more information please call Jane Lamont or Simon Gee on 020 7404 4884 or via email to jane@heywoodgroup.com or simon@heywoodgroup.com. Alternatively, please visit www.heywoodresearch.com.
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RECRUITERS’ SALARY SURVEYS PUBLISHED
Heywood Associates & Heywood Search have today published their 2009 Annual Recruitment and Executive Search Salary Surveys. They show that despite all the doom and gloom, the financial packages paid to recruiters and Executive Search consultants have remained high in 2008 compared to other sales-related sectors although lower than the previous year.
Commenting on the Surveys, Simon Gee, Managing Director of Heywood said: “This hasn’t been a great year for recruiters. Billings for some fee earners has fallen by as much as 50% and take-home pay with commissions and bonuses are down by as much as 42% in some sectors. Despite this, some sectors have not been too badly affected and earnings across the sector overall are still relatively high.”
Gee continued: “We anticipate tougher times remaining until at least the end of the 2nd quarter 2009. By then we expect some clearer forward visibility. Right now it is a cautious market although for every firm cutting back, others are hiring. For businesses with cash, there are tremendous opportunities to grow right now.”
Jo Palmer, Manager of Heywood Associates adds: “Sectors such as Accountancy, Commercial and Legal have remained quite buoyant. Clients are more dilligent in their hiring process but experienced recruiters with good business development skills remain in high demand and candidates can still expect to receive 2-3 offers.”
Palmer continued: “Financial Services have had a tough time but there are still some excellent opportunities offering great packages within niche firms even in the hardest hit sectors. We simply need to work harder in order to stand still and we have to accept that this is the way it will be for the forseeable future. Those recruiters who are unhappy need to seek an alternative recruitment opportunity or if they can’t cope or make a living, they will have to leave the industry.”
Graeme Day, Principal Consultant at Heywood Search comments: “Fee income within the Executive Search sector has fallen and so take-home pay has tumbled too. But despite the doom and gloom there are still some excellent opportunities at both board and marzipan levels across international large firms and niche boutiques. Many of these new opportunities exist for the more experienced fee earners with an established portfolio. Researchers unfortunately are in less demand at this time but again, there are still some opportunities available. Interim management remains relatively unaffected.”
Elizabeth Ife, Principal Consultant at Heywood Search continues: “We have also noted an increase in demand internationally for fee earners and researchers and we have successfully placed a number of candidates in roles in the Middle East, Asia and Australia. These are at all levels and the financial packages achieved are very impressive.”
Gee finishes: “Copies of our two Salary Surveys can be downloaded free of charge from our websites but if you would like to receive a hard copy, please let us know. I am sure you will find them interesting reading. The important thing to take away from the Surveys is that there is still life in the recruitment sector and you can still make an excellent living.”
END
About Heywood
Heywood was established in 1997 as a research and recruitment to recruitment consultancy. Based in Holborn, Heywood focuses on middle to senior level recruitment opportunities in many sectors across the whole of the UK, Europe, Middle and Far East and Australia. Heywood is a full member of the REC and a founder member of the R2R Sector group. More information can be found at www.heywoodgroup.com
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2008 Salary Surveys Released Today
18 October 2007
Salary Surveys for Heywood Associates, Heywood OnSite, Heywood Sales and Heywood Search have been published by their respective companies today and can be found on the relevant websites for a free download.
Commenting on the Surveys, managing director Simon Gee said: “We are delighted to publish our 2008 Salary Surveys. This year has produced our biggest year of analysis in the nine years we have provided this free service. In total, thousands of candidates and client contacts have been consulted and this mirrors hundreds of vacancies we worked on during the period of June – October 2007.”
Gee continued: “This year we are delighted to announce the launch of our Heywood OnSite Salary Survey - the first of its kind. Heywood OnSite operate at the forefront of the InHouse, OnSite and RPO markets and the Survey will be invaluable to the growing client and candidate base in this space. We have also built on last year’s Building & Construction Sales Salary Survey with a greater reach of sectors and job titles. We have also managed to compare financial packages to last year’s survey. Heywood Associates continues to produce the leading Survey of its kind for the Contingency Recruitment sector and is in its ninth year of production. Heywood Search continues to offers a Survey for the Executive Search and interim Management recruitment sectors.
The overall findings confirm that 2007 has been a very profitable year for the sectors covered but challenging times, particularly within the financial markets sector, could be on the cards. Graeme Day, Principal for Heywood Search said: “We have noticed a slow down in search assignments for the financial markets and this sector is expected to be difficult for most of 2008. We have noticed a number of experienced financial markets candidates moving onsite.”
Owen Bassett, Head of Heywood OnSite continues: “A number of high profile investment banks have registered an interest in financial markets recruiters to work onsite. Although recruitment has slowed down in this sector and many have external recruitment freezes, there is still some movement and the financial institutions would prefer to appoint individuals to work onsite rather than having to hire through agencies.”
For further information on the 2008 Salary Surveys, please visit the websites. A PDF version of the findings are available free of charge at any time. If you would like to obtain a hard copy of a Survey, Heywood would be delighted to post a copy out. Simple phone their offices on 020 7404 4884 or send an email to info@heywoodgroup.com requesting a copy.
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Heywood Announce Release Date for 2008 Salary Surveys
2 October 2007
Heywood confirmed this morning that the 2008 Annual Salary Surveys will be released during the week commencing 22 October 2007.
Commenting on the announcement, managing director, Simon Gee said: “We are delighted to be publishing our four annual Salary Surveys for what will be our ninth year. In addition to the Heywood Associates recruitment survey, Heywood Search Executive Search & Interim Management survey, Heywood Sales Building & Construction Sales survey, we will be publishing the first and only Salary Survey for the InHouse, OnSite and RPO market by our new business Heywood Onsite.”
Gee continued: “This year we have increased our depth further and the findings will no doubt prove very interesting. I can tell you that in certain markets, there has been a slow down as we approach the end of 2007, whilst other sectors are still going strong. There has been some phenomenal movement in some sectors of the market and recruitment overall is still a great and financially lucrative industry to work within.”
To learn more about what you could be worth in the market, visit the ‘What Am I Worth?’ pages on Heywood’s recruitment websites. Alternatively email clare@heywoodgroup.com with your name, postal and email addresses to reserve your copy of the survey, clearly specifying which report you would like us to send you. Otherwise, please revisit our website after 22 October to download your free copy.
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Heywood Launches Onsite Recruitment Business
23 July 2007
Heywood Group announces today the launch of a new business, Heywood Onsite. Commenting on the new venture, managing director Simon Gee said: “We are delighted to be launching Heywood Onsite, a recruitment business that places recruiters into Onsite positions with blue chip companies, financial institutions and resource management businesses. Demand for recruiters has never been higher by client companies and we are in an ideal position to service their requirements. This business sits perfectly with our two recruitment to recruitment businesses, Heywood Associates and Heywood Search.”
Gee continued: “Opportunities to work on-site for a large blue-chip or financial institution could be very attractive for an experienced recruiter. There will be a constant supply of job orders and of course there would be immediate contact with clients. The challenge of course is to service the client’s needs quickly, cost effectively and efficiently. A role on-site is certainly not a walk in the park” warns Gee. “Clients can be very demanding and if you fail to deliver there is no where to hide.”
Heywood expects to receive referral candidates from Heywood Associates and Heywood Search as well as marketing the new service to the media. Client relationships have already been established with a number of blue-chip companies, financial institutions and resource management businesses.
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Heywood's Opportunities Down-Under
4 June 2007
Heywood Associates, the leading recruitment to recruitment specialist has developed a strategic partnership with a major recruitment to recruitment business in Australia. Recruitment opportunities are available via the partnership in Adelaide, Brisbane, Perth, Melbourne and Sydney.
Commenting on the strategic partnership, managing director of Heywood said: “We are delighted to offer this additional string to our bow. We often receive enquiries from candidates interested in a move overseas and whilst we have built working relationships directly with clients in Europe, Asia and the Middle East, there is a lot of demand from British recruiters to work in Australia. Having recently returned from Australia myself, I can see why someone would want to go!”
Gee continued: “We have been looking for a strategic partner in Australia for a while and are delighted to have hooked up with this particular firm who are one of the largest, most professional recruiters of their kind in Australia. They operate at the mid to senior level so will be able to assist recruiters with at least 12 months recruitment experience in any recruitment sector. Demand for British recruiters, managers and directors has never been higher at the moment and any candidate serious about considering a move to Oz can expect a lot of interest and a great financial package.”
Jo Palmer, manager of Heywood’s commercial practice adds: “The interview process is really straight-forward. We will submit your CV to the appropriate manager in the Australian city of your choice. A phone based interview will take place within 48 hours and candidates can expect to receive an email with a list of appropriate companies along with website details by return. Once the candidate has agreed to be put forward to a particular company, a CV is emailed over to the chosen firms. Interviews are then arranged over the telephone followed by a video-conference and/or a face to face meeting in either the UK or Australia. Visas are organised for candidates by the hiring client and can be dealt with within a few weeks. Give us a call if you want to know more.”
Heywood Associates is a REC sector group member and has been established for over 10 years. Heywood Associates is part of The Heywood Group.
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