The 2009 Annual Salary & Benefits Survey from the REC in association with accountants Saffery Champness, provides one of the clearest insights yet as to how the current recession is hitting recruiters.

Nearly half (42 per cent)  of agencies that have survived the downturn report that they have made redundancies and 39 per cent currently have a headcount freeze in operation. In difficult trading conditions most owners have acted to freeze salaries and commission rates at 2008 levels.  

Other key findings include: 

• The average basic salary for the UK recruitment industry currently stands at £27,420.
• The average total salary of recruiters, including bonus/commission, currently stands at £38,218.
• Bonuses received by Managers were on average around £4,000 higher than Consultants’.
• Overall, nearly two-fifths (38%) of recruiters remain concerned about their job security.       
• Despite the recession, overall, job satisfaction in the recruitment industry remains high. Just under three quarters of all recruiters are satisfied with their job overall (73%, compared with 76% in 2008).
• There remains a clear link between training and employee satisfaction.
• Overall, the average rate of staff turnover (i.e. the average proportion of staff  that leave and are replaced in a 12 months period) has stayed at 2008 levels. 

Roger Tweedy, the REC’s Director of Research, said: “The results of the survey should not really come as a surprise as we know the recruitment industry, like so many other economic sectors, has borne the brunt of the recession.

“However, our other current research work has given clear indications that confidence is gathering momentum among employers indicating possible improvements within the industry in the last quarter of this year. So hopefully, this will continue to build and will be reflected in next year’s survey.”

Martin Holden, Partner and Head of the Professional and Consultancy Services Group at Saffery Champness said:   “Headcount reductions and freezes in total salary packages are to be expected in light of the economic environment which, in some sectors, has led to reductions in fee income of up to 50 per cent.   A squeeze on commission rates from clients will also have resulted in many companies having to examine their staff costs more closely.” 

A total of 401 UK recruitment consultants and managers were interviewed for the survey with additional questions added this year on the effect of the recession. 

Copies of the Salary and Benefits Survey 2009 are available from the REC website,http://www.rec.uk.com/about-recruitment/research/bookshop/annualsalary2009.