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Lunchtime Links: Recruitment industry bloodbath?

Alongside all the excitement about Citi’s corporate jet and John Thain’s PR supremo, the travails of recruiters may look like small beer. Needless to say, they are clearly not, and it’s worth taking note that things appear to be getting rather nasty out there. A Financial News article on the joys of working in restructuring in the current climate illumines just how nasty: it quotes figures from Deloitte which suggest administrations in recruitment rose 232% last year, more than in any other sector.

BofA says it’s got “no legal right” to challenge Merrill’s bonus payouts. (Reuters)

Purging of Thain’s inner circle in process. (Dealbreaker)

Deutsche’s ‘sensational’ start. (Bloomberg)

Jefferies hires seven equities professionals. (Reuters)

Morgan Stanley banker leaves for a hedge fund. (Bloomberg)

More than $1m per head to keep those invaluable derivatives experts at AIG. (DealBook)

Go away Yea. (The Times)

Wall Street’s socialist jet-setters. (NY Times)

Love your job? Then save it. (Fortune)

Civil servants will spend one third of their lives in retirement. (The Times)

Comments (13)

  1. The Recruitment sector was already far too full of Companies and people earning excessive remuneration for pushing CV’s around.
    Many of the more senior recruiters have been earning salaries that most IB staff would aspire to.
    The industry needs to thin down and work for a change.The better ones will survive, the weaker are already dying

  2. Recruitment companies should ply their trade around the fast food chains. Plenty of redundo’s happy to flip burgers.

    raybold the soothsayer Reply
  3. best news i’ve hear all year,
    this credit crunch is marvellous
    could have happened to a nicer bunch of people: recruitment agents, estate agents and goldmans traders

    hopefully a few more years of this

  4. Rapo is a gimp

  5. Rapo whiffs of the kind of person that recruitment agents hate the most – arrogant to the extreme with little skills to back himself up with

  6. To a certain degree I agree with Bob

    Any recruiter that tells his boss that the ‘market is bad and there is no opportunity to create deals’ is not worth their weight.

    The market is challenging but if you are well networked, understand the market conditions, adapt and focus on your relationships you will win assignments and build trust for future business.

    Recruiters calling for a job and winging off the back of what was a big brand will not last very long in this economic climate.

    Time to work for your commission – the same came be said for Investment Bankers – You get paid what you are worth in a bad market!

  7. Recruitment is so hard. No- one is hiring.

  8. No Rapo is totally right.
    Estate Agente & recruitment agencies require no qualifications whatsoever, but somehow breed the most arrogant idiots ever. It will be great news seeing them eat humble pie.

  9. Even the best financial services headhunters will find it tough going in these markets, but they will survive. The muppetts will fail – I know of one firm that has apparently billed nothing so far this year, has an empty invoice pipeline and yet has just hired a bunch of people in Hong Kong just when that market is going south as well! Parachutes packed I think!!

  10. Zoro Hong Kong market has heard what is going on there.Hong Kong is small market here and there are so many rumors!!!If they knew what was really happening in head office would they have joined.

  11. I spent 10 years as a recruitment consultant and 10 years more recently as head of recruitment in an IB, dealing with agencies and contracting their services. I fear that those living in greenhouses should quit chucking stones at recruitment agencies. The performance and quality of output of agencies has, in hindsight, only been marginally worse than those highly paid Risk Mngrs and ‘Masters of the Universe’ in the banking industry – so think before you say these things – you’ll probably get your next job (if your one of the lucky ones!) through a recruitment Consultant after all!!!

  12. It is always interesting to hear someone who has never performed a role talking about how easy it is and how little work it involves. Recruitment is an industry that is constantly berated, in which those that are conscientious, skilled and professional have to battle against the stereotypes created by the numerous cowboys ripping people off. Thankfully these market conditions will see the end of many of these monkeys making it so hard for the rest of us.

    However, for every horror story, there is someone who has been helped. Someone who has got a brilliant job, been given impartial advice, been counselled and guided and moved their career forward as a result.

    If recruitment consultants get well paid in such a competitive market, it is because they are succeeding and often in the face of the prejudice and stereotyping promulgated by arrogant baffoons who have never tried it.

  13. There are good and bad doctors, estate agents, recruiters, policeman, politicians ….you can’t generalise.I am a successful headhunter who works very hard. I look after my candidates as well as my clients .There are agencies out there that give the industry a bad name, granted and that can sometimes make my job harder . I applaud the the above comment by AOC….and as for ….what was his name with his juvenile ignorant comments ….ahhh can’t recall but I haven’t heard of his name ….oh that’ll be because I get my candidates through referrals and he can’t be big enough in his field ….I wonder why ? Wind your neck in Rapo … you never know who you meet on the way down !!!! Good luck to all recruiters out there who are professional and have integrirty ….stick with it , sharpen your act and he who survives will be in a better position when the market turns. I like to think that I have leveraged people’s careers and enhanced their lives !! Good afternoon :-0

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