2010 Recruitment Outlook: Sunshine After the Storm Recruiters Expect More Job Orders, More Staff & New Resources
Executive Summary
The recruitment industry overwhelmingly expects 2010 to be a year of sunny skies and good news in the wake of the upheaval
and hunkering down that the economic recession caused over the last two years.
A whopping 72 percent of recruiters expect to have more job orders in 2010 than they had last year, and fewer than 9 percent
expect to have fewer job orders, based on results from a survey by Sendouts, the leading, single-source provider of recruiting
software for third-party recruiting and staffing firms.
Nearly 31 percent of survey respondents expect their placement fees to increase by 5 percent to 10 percent in 2010, and the
majority at least expect their fees to be the same as in 2009. Fewer than 12 percent expect fees to drop in the coming year. Not
surprisingly, the survey found differences within the overall trends when comparing recruiter organizations based on size
and current technology. These results are based on responses from 189 recruiters, more than 94 percent of whom are in the
U.S., and nearly 85 percent of which are staffing, third-party or corporate recruiters.
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60%
80%
100%
10%
30%
50%
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90%
Responding to Anticipated Recruitment Activity in 2010
Add NewSourcingSystems
Add NewApplicantTrackingSystems(ATSs)
Add NewCustomer
RelationshipManagement
Systems(CRM)
Add NewStaff
Add NewTechnology
More Job Orders, More Candidates, Same or Greater Placement Fees
By a margin of more than nine to one, recruiters expect the number of job orders in 2010 to be the same or greater
than they were in 2009, the survey found.
Organizations with four to six recruiters (which
represented 20 percent of all respondents)
are the most optimistic. An overwhelming 82
percent of them expect to see more job orders
in 2010, while 13 percent expect to see the
same number of job orders as in 2009.1
Two groups were decisively less optimistic than
the rest. Organizations with only one recruiter,
and organizations with 20 to 50 recruiters. But
even these groups are very much looking on the
sunny side of the street for the year ahead:
• 62 percent of organizations with only one
recruiter and 60 percent of organizations
with 20 to 50 recruiters expect to see
more job orders in 2010, compared with
72 percent for all respondents.
• 10 percent of organizations with only one
recruiter and 20 percent of organizations
with 20 to 50 recruiters expect to see
fewer job orders in 2010, compared with 3
percent for all respondents.
However, even with the expected rise in job orders, recruiters don’t necessarily see a corresponding increase in
candidate volume. “Perhaps because of the flood of candidates into the market during the recession, recruiters don’t
expect the volume of candidates to rise equal to the number of job orders in 2010,” said Don Breckenridge, Jr.,
President of Sendouts. “This could mean that finding the best candidates for an expanding number of job orders will
become even more challenging in the year ahead.”
Fewerjoborders
1The survey asked respondents to state how many recruiters their organizations have using the following categories: 1, 2-3, 4-6, 7-10, 11-20, 21-50, over 50.
At the same time they’re expecting job orders
to increase, most recruiters do not anticipate
any change in candidate quality. The good
news in this finding is that the candidate
pool has reached something similar to a
saturation level. This argument is bolstered
by the survey finding that just over one in
10 recruiters expect candidate quality to be
worse in 2010.
Although nearly three out of four recruiters
expect to have more job orders in 2010,
fewer than three out of 10 expect their
placement fees to increase more than 5
percent. Still, the mere finding that 30
percent of recruiters are looking forward to
greater revenue in 2010 is a bright spot on
what has been a gloomy couple of years for
the industry, Sendouts’ Breckenridge said.
“This apparent correlation between a
strong boost in job orders and a desirable
but less robust gain in placement fees
could be another indication that economic
recovery is occurring gradually,” said
Breckenridge. “It’s also a call to recruiters
that although organizations will be hiring
again in 2010, the purse strings will be
tight, and recruiters will need the best
sourcing and ATS solutions to find and
land the best candidates quickly and cost-
effectively.”
Smaller organizations were more optimistic
than survey respondents as a whole, while two
groups (sole-recruiter offices and medium-sized
organizations) were markedly less optimistic than
the rest when projecting placement fees for 2010.
Compared with 30 percent of all respondents who
expect to see their placement fees increase by as
much as 10 percent:
• An impressive 50 percent of organizations
with seven to 10 recruiters expect to see
their placement fees increase up to 10
percent, compared with 29 percent for all
other survey respondents.
• 37 percent of organizations with four to six
recruiters expect to see their placement fees
increase up to 10 percent, compared with 30
percent for all other survey respondents.
• 23 percent of organizations with only one
recruiter expect to see their placement fees
increase up to 10 percent, compared with 34 percent for all other survey respondents.
• 20 percent of organizations with 11 to 20 recruiters expect to see their placement fees increase up to 10 percent,
compared with 32 percent for all other survey respondents.
Biggest Obstacle: Finding New Orders
It may seem ironic or at least paradoxical that while nearly nine
out of 10 recruiters expect to have the same or more job orders
than last year, the majority expect “finding new job orders” to be
their biggest obstacle in 2010.
When asked to choose among a) finding new job orders, b)
finding qualified candidates or c) reducing their sendout-to-hire
ratio, the majority of recruiters put finding new job orders at the
top of the list.
Smaller recruiting organizations (two to six recruiters) were even
more concerned than their peers about finding new job orders.
Much larger recruiting organizations (20 or more recruiters) were
more concerned with reducing the sendout-to-hire ratio:
• 65 percent of recruiting organizations with two to six recruiters said finding new job orders was their biggest
obstacle for 2010, compared with 40 percent for all other survey respondents.
• 35 percent of recruiting organizations with 20 or more recruiters said reducing the sendout-to-hire ratio was their
biggest obstacle, compared with 18 percent for all other survey respondents.
Nearly three in 10 recruiters said their organizations expect to add staff in 2010 to obtain new job orders, and only a
slightly smaller number said they expect to add staff to acquire new candidates. New technology and outsourcing were
the second- and third-most selected strategies for each demand.
To find new job orders in 2010:
• 28 percent of all respondents said they expect to add staff.
• 15 percent said they expect to add new technology.
• 6 percent said they expect to outsource.
To acquire new candidates in 2010:
• 27 percent of all respondents said they expect to add staff.
• 23 percent said they expect to add new technology.
• 10 percent said they expect to outsource.
New Technology for 2010? Majority Expect New Sourcing Systems
Further supporting the contention that the economy has turned a corner, more than half of all survey respondents said
they expect to add new sourcing solutions in 2010. A third will update or add an Applicant Tracking System (ATS). One
in four will bolster their efforts with a new Customer Relationship Management (CRM) system. Only 2 percent of all
respondents said they do not expect to use a new system for recruitment efforts in 2010.
The table below shows how survey respondents answered when asked to “select any new systems you plan on using in
2010.”
2The numbers add up to more than 100 percent because survey respondents were asked to select any new systems they
expect to use in 2010; many selected more than one option, so the numbers reflect their overlapping responses.
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100%
10%
30%
50%
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90%
New Technology in 2010
NewSourcingSolution
NewATS
NewCRM
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The survey also asked respondents what system they currently use, and the results provided an interesting look at
recruiters’ plans for new systems from that perspective.
Recruiters Currently Using an ATS/CRM
Among recruiters who said they are using an ATS or CRM today and expect to use a new system in 2010:
• 75 percent said they expect to use a new ATS or CRM.
• 45 percent said they expect to use a new sourcing system.
Recruiters Currently Using a Sourcing Solution
Among recruiters using a sourcing solution today, the feelings toward new systems for 2010 are about the same as for
those using an ATS or CRM. Among recruiters using a sourcing solution now and who are expecting to use a new system
in 2010:
• 43 percent said they expect to use a new ATS or CRM.
• 56 percent said they expect to use a new sourcing system.
Size Matters ... But Less than In Other Areas
Plans for new systems in 2010 differed much less among recruiting organizations of different sizes compared with
responses for other topics. Still, some differences stood out:
• Among organizations with 20 to 50 recruiters, an overwhelming 60 percent expect to add new sourcing systems in
2010, compared with 48 percent for all other survey respondents.
• Among organizations with two to three recruiters, 33 percent expect to add new ATS solutions in 2010, compared
with 27 percent for all other survey respondents.
• Among organizations with two to three recruiters, only 18 percent expect to add a new CRM systems in 2010,
compared with 25 percent for all other survey respondents.
Conclusion
As an indication that the economy is recovering, the recruitment industry sees improvement for 2010 in the wake of the
upheaval and hunkering down that the economic recession caused over the last two years. Nearly three in four recruiters
expect to have more job orders in 2010 than they had last year. Fewer than one in 10 expect to have fewer job orders.
Nearly 31 percent of survey respondents expect their placement fees to increase 5 percent to 10 percent in 2010, and
fewer than 12 percent expect their fees to drop. The candidate pool is expected to grow, but ironically, the largest
obstacle most recruiters see is finding new candidates.
To find candidates and new job orders in 2010, a healthy percentage of recruiters expect to augment staff and add new
systems for ATS, sourcing, CRM or all three.
Not surprisingly, the survey found differences within the overall trends when comparing recruiter organizations based on
size and current technology.
Demographics/Methodology
The survey was conducted online between Dec. 14, 2009, and Jan. 5, 2010, by Sendouts. The survey was marketed
via multiple online channels, and readers were directed to a website to complete the survey. Over 189 individuals, each
representing a unique company, completed the survey.
Over 32 percent of the individuals who completed the survey chose “owner/executive” when asked to select from a list
of roles within their organization. Just over 25 percent selected either “recruiter” or “corporate.” A total of 16 percent
selected “AM/Sales,” “Owner” or “Sourcer/Recruiter.”
More than 94 percent of the respondents are in the U.S., and when asked to select what type of organization they work
for, 85 percent indicated they work for a “staffing,” “third-party” or “corporate” organization.
About Sendouts Sendouts™ is the leading, single source provider of recruiting software for third party recruiting and staffing firms.
Sendouts Surge Web-based recruiting software enables recruiting firms to streamline their recruiting process, increase
productivity, and make more placements. Additionally, Sendouts provides unparalleled training and support and is backed
by an industry leading 98% customer satisfaction rate. Sendouts clients on average achieve an internal growth rate of
48% and increase job order fill rates by over 20%. Sendouts helps more than 1000 firms automate and manage the
entire recruiting process, from sales to final placement. For more information, visit www.sendouts.com or call
877-309-5222.