A VieWfrom THE c lo u d

2013 EUroPEAN STAffiNg ANd rEcrUiTmENT TrENdS rEPorT

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In December of 2012, Bullhorn conducted its second annual trends survey of agency recruitment professionals in Europe, seeking to assess the state of the staffing industry from the perspective of business performance, recruiter remuneration, popularity and growth of recruiting technologies, and measurement best practices. In addition to the 2013 European Staffing and Recruitment Trends Report, the 2013 North American Staffing and Recruiting Trends Report and the 2013 Australian Staffing and Recruitment Trends Report are also available on the Bullhorn website.

European recruitment professionals are embracing some technologies, cautiously testing others, and expecting growth on multiple levels in 2013. With growing revenue and a continued focus on strengthening new and existing client relationships, plus a desire for geographic expansion, European staffing agencies feel poised for a healthy year.

introduction

coNTeNTS

4 rEVENUE PErformANcE

5 cLoUd USAgE

6 mETricS

8 BEST PrAcTicES

10 TimE ALLocATioN

12 rEcrUiTmENT TEcHNoLogY

13 rEmUNErATioN

16 SociAL mEdiA

19 cANdidATE TrENdS

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Key findings

• Sixty-three per cent used a cloud-based recruitment solution in 2012.

• Respondents who used cloud recruitment solutions had greater company revenue, individual remuneration, and attracted a higher number of candidates than those who did not use cloud solutions.

• Average expected remuneration for VPs, directors, and managers increased, while expected remuneration for their staff (recruitment consultants, account managers, sales consultants) and superiors (owners, C-level executives, MDs, board members) decreased.

• Large firms considered CRM recruitment technology more important than small or mid-sized firms.

• Seventy-five per cent of firms either met or exceeded their 2012 revenue goal, compared to 61 per cent in 2011.

• Ninety-seven per cent used social media for recruitment in 2012.

• Fifty-eight per cent reported that their 2012 remuneration increased over 2011.

• Eighty-five per cent plan to add staff to

their business in 2013, versus 91 per cent who planned to do so in 2012.

• Ninety-two percent believe their firm’s revenue will increase in 2013, versus 88 per cent who felt similarly for 2012.

• The healthcare sector had the highest average hit rate in 2012 (44 per cent) and the advertising/marketing/creative sector had the lowest hit rate (eight per cent).

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4

Hiring Sector and Location Expansion

Firm Growth Initiativesfor Upcoming Year

2012 2013

100%

80%

60%

40%

20%

0%

91%

59%

79% 85%

58%

LooKiNg BAcK AT 2012 ANd forWArd To 2013

In last year’s European Recruitment Trends survey conducted in December of 2011, recruitment professionals reported high hopes for growth in 2012. All of the recruitment executives surveyed predicted that their firms’ revenue would increase over 2011, with 52.4 per cent of respondents expecting growth of 25 per cent or greater. Ninety-one percent of staffing professionals in leadership positions anticipated adding personnel in 2012, with 58.7 per cent planning to expand into new geographies.

More firms reported meeting and/or exceeding their revenue goals in 2012 than in 2011, but nonetheless only 30 per cent of firms did better than they expected, and 25 per cent fell short – hardly the unanimous victory executives expected.

2012 Firm Revenue Performance

Exceeded Goals

Met Expectations

Did Not Meet Goals

25%

30%45%

Firms That Met or Exceeded Revenue Goals

2011

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

67%75%

2012

rE

VE

NU

E P

Er

fo

rm

AN

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Sentiments for 2013, however – as in 2012 – are still highly optimistic if somewhat tempered. Ninety-two per cent of respondents expect to increase revenue in the coming year, 85 per cent plan to add staff, and 57.5 per cent anticipate geographic expansion.

Respondents Expecting Increase in Revenue for Upcoming Year

2012

100%

80%

60%

40%

20%

0%2013

Increase >0% and <10% Increase >11% and <25% Increase >25%

52% 43%

38% 29%

20%10%

5

Benefits of Cloud Software100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

Ability to WorkFrom Any

Perceived Benefits

Easier Expansion/Scalability

IncreasedBusiness Agility

ReducedIT/Admin Costs

Easier Integrationwith Other

Unsure of Benefits

Realized Benefits

71%

88%

46%53%

41%

54%

31%

42%

29%25%

16%

3%

Recruiters Who Use Cloud-BasedRecruitment Software

NO 37%

YES 63%

EUroPEAN HEAdS ArE NoT iN The cloud

When asked if they used cloud-based recruitment software, defined as “remotely-accessible services delivered over the Internet” – 62.8 per cent of respondents said yes, and 37.2 per cent said no. Despite cloud software generally being more affordable, faster, and less resource-intensive than on-premise software, nearly 40 per cent of respondents aren’t taking advantage of it for recruiting. To better understand the reasoning of users and non-users, both groups were asked to identify what they considered to be the benefits of cloud software. And both groups returned similar responses.

Nearly 88 per cent of respondents who did use cloud recruitment solutions identified a key benefit as “the ability to work from any location at any time”, and the non-user group provided the same top response. For both groups, the next most prominent benefit was “easier expansion/scalability across geographies” – an important consideration as the majority of firms plan to expand their geographic reach in 2013. Interestingly, a greater percentage of non-users identified ease of integration as a benefit than users. Almost 16 per cent of non-users were unsure as to cloud software’s benefits – which isn’t surprising. However, three per cent of people who used cloud software were also unsure of its benefits, indicating that not everyone who uses certain technology may be aware of its value, or may even agree that is has value.

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As cloud computing continues to grow in prevalence in Europe especially, it’s curious to see that both users and non-users share similar views on its most prominent benefits. If they’re aware of the benefits of cloud computing, why are 37.2 per cent of recruitment professionals not leveraging it?

This question takes on special importance given that 34 per cent of firms whose employees used cloud recruitment technology exceeded their 2012 revenue goals versus only 23 per cent of firms who didn’t use cloud recruitment technology.

2012 Firm Revenue Goals byUse of Cloud Software

60%

50%

40%

30%

20%

10%

0%

Exceeded Goals

Met Expectations

Did Not Meet Goals

34%

23%

42%

51%

25% 26%

Use Cloud Do Not Use Cloud

mETricS MAdNeSS

When asked to rank the metrics they used to measure business effectiveness in 2012, 53.1 per cent of recruitment professionals placed “total number of placements” at number one – exactly the same as in 2011. “Fill rate” was the second most popular selection, as it had been last year, with 21.4 per cent. The third most important metric was “average gross margin of placement fee”, which had been ranked fourth in 2011, followed by “hit rate” at number four, which had been ranked third in 2011.

Most Important Performance MetricFor Staffing Firms

Total Number of Placements

Fill Rate

Average Gross Margin of Placement Fee

Hit Rate

Total Number of Job Orders

Time-to-fill

9%

53%

22%

13%

3%0%

When ranking the effectiveness of individual sales consultants, 2012’s findings also echoed those of 2011. As in 2011, the most important metric for measuring sales consultant success in 2012 according to 82 per cent of respondents was “number of placements”. “Placement ratios” was second in importance, as it had been in 2011, but third was “number of interviews set” (versus “number of contracts” in 2011). This was followed by “number of job orders”, “number of contracts”, and “time-to-fill”. Four per cent thought sales effectiveness was simply “difficult to track” and ten per cent used other metrics, including “total revenue” and “billable fees”. One respondent mentioned an especially compelling metric: “candidate and client satisfaction”.

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Metrics Used in Measuring Effective Sales Consultants

100%

80%

60%

40%

20%

0%Placements

2011 2012

PlacementRatios

ScheduledInterviews

Job Orders Contracts Time-to-fill Difficult to Measure

Other

95%82%

38%

50%

19%

34%

14%

27% 29%

17%

5%13% 14%

4% 5% 10%

The survey asked recruitment professionals to disclose their average hit rate, defined as the number of successful placements divided by total number of client submissions and multiplied by 100. Twenty per cent of respondents reported a hit rate of “31-40 per cent”, followed by 18 per cent with a hit rate of “11-20 per cent” and 17 per cent with a hit rate of “21-30 per cent”. In total, 54 per cent of European recruitment professionals reported an average hit rate greater than 31 per cent. Only 49.1 per cent of North American recruiters achieved the same success.

More interesting, however, were the variations in average hit rate when segmented by sector, size of firm, and type of firm.

The healthcare and industrial sectors came out on top, with average hit rates of 44 per cent. Information technology, the most heavily represented industry in our survey, had an unremarkable average of 27 per cent, but advertising/creative/marketing had an abysmal hit rate of just eight per cent.

Average Hit Rate By Industry0%

Healthcare

Industrial

Construction

Legal

Sales

Real Estate

Public Sector

Accounting / Banking

Office / Clerical

Information Technology

Scientific / Engineering

Energy / Mining

Advertising / Creative

10% 20% 30% 40% 50% 60%

44%

44%

41%

37%

36%

35%

34%

34%

31%

27%

24%

16%

8%

8

Average hit rate across type of firm was quite consistent, with percentages in the upper-thirties for all.

Size of firm, however, did have a bearing on hit rate. Small firms had the highest hit rate, averaging 37 per cent. Mid-sized and large firms had hit rates in the lower thirties. This could be attributed to small firms likely having greater oversight over individual accounts.

Average Hit Rate by Type of Firm

60%

50%

40%

30%

20%

10%

0%

38%

Temporary

38% 36% 36%

Contract Consulting

Direct Hire ExecutiveSearch

Average Hit Rate by Firm Size

60%

50%

40%

30%

20%

10%

0%

37%

Small

31% 32%

Mid-Size Large

WhAT WorkS ANd WHAT doESN’T

Asked to identify the particularly effective business adjustments they’d made in 2012, 72 per cent of European recruitment professionals said they “increased focus on strengthening new and existing client relationships”. The second most popular adjustment was “introducing social media to the recruitment process”, followed by “investing in software and technology upgrades”.

Business Adjustments Made in 2012

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%Increased Focus

on StrengtheningClient Relationships

IntroducedSocial Media

Invested inSoftware andTechnology

Expanded intoNew Sectors

Scaled backFocus to Areas

of Expertise

72%

30%

16%

55%

40%

SMAll firMS HAd THE HigHEST

HiT rATE, AVErAgiNg 37 PEr cENT.

BE

ST

Pr

Ac

Tic

ES

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fiNdiNg cLiENTS ANd cANdidATES: A SociAl MediA PArAdox

A higher percentage of respondents who used cloud recruitment solutions “invested in software and technology” than those who didn’t — as would be expected. Interestingly, both groups had roughly the same percentage of respondents who introduced social media into their recruitment mix, suggesting that social recruitment is gaining traction across the board.

When it comes to finding the best candidates, consultants’ tactics haven’t changed much over the last year. Networking and referrals remain the most effective approaches, although job boards and social media climbed. This is quite different from North America, where “job boards” ranked lowest in effectiveness and “social media” has been consistently rising in the ranks.

Business Adjustments Made in 2012by Cloud Users

100%

80%

60%

40%

20%

0%

Increased Focuson Strengthening

Client Relationshops

IntroducedSocial Media

Invested inSoftware andTechnology

Expanded intoNew Sectors

Scaled BackFocus to Areas

of Expertise

Use Cloud Do Not Use Cloud

71% 74%

55% 54%45%

31% 31% 29%

14%20%

Best Methods forFinding Candidates

0 0.5 1 1.5 2 2.5 3 3.5 4 4.5

Networking

Referrals from Previous Placements

In-house Candidate Database

Job Boards

Social Media

2011 2012

Rating Average

10

When asked how much time they spent managing existing client accounts, 33.3 per cent of account-focused consultants said it took up 31-50 per cent of their time, while 30.6 per cent spent more than 50 per cent of their time. This is in contrast to the 5.6 per cent of respondents who devoted more than half of their time to managing existing accounts in 2011. With the majority of respondents citing “strengthening new and existing client relationships” as an

important business adjustment they made in 2012, the increase in time spent managing existing accounts is a logical extension of that focus.

However, true to their stated preference for networking events and face-to-face time, European consultants spent far more time out of the office meeting with clients and candidates than did their North American counterparts. While 51 per cent of North American

recruiters spent less than ten per cent of their time attending to business outside the office, the majority of European recruitment professionals – 60.5 per cent – spent more than ten per cent of their time meeting with clients, prospects, and candidates, and nearly 42 per cent spent between 10-25 per cent of their time in the field.

This is an increase over 2011, when only 35.4 per cent of European recruitment consultants

Tim

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oc

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In terms of attracting new clients, however, Europe was much more partial to social media. When asked to choose three of the best ways to obtain new clients, 69.4 per cent of respondents reported that attending “networking events” was helpful, followed closely by participating in “online social networking (e.g. LinkedIn groups, Twitter)” (66.7 per cent), maintaining “an online web presence” (53.1 per cent), and joining “professional groups” (44.9 per cent). Interestingly, this was the exact same order of preference as 2011.

Best Methods for Obtaining New Clients

100%

80%

60%

40%

20%

0%

Attend Networking Events

Social Networking

Join Professional Groups

Search EngineMarketing

2011 2012

Maintain anOnline Presence

64% 69%

58%67%

47%53%

44% 45%

22%18%

houSekeePiNg

11

Time Sales Consultants SpentManaging Existing Accounts

60%

50%

40%

30%

20%

10%

0%

<10% 10%-30% >50%

2011 2012

31%-50%

14%9%

28% 27%

53%

33%

6%

31%

Percentage of Time Sales Consultants Spent Out Of Office for Meetings

80%

60%

40%

20%

0%

<10% 10%-25% >50%

2011 2012

26%-50%

33%25%

67%

50%

0%

25%

0% 0%

Time Sales Consultants SpentAcquiring New Clients

60%

50%

40%

30%

20%

10%

0%

<10% 10%-30% >50%

2011 2012

31%-50%

6%

18%

28%

40% 39%33%

28%

9%

spent between 10-25 per cent of their time meeting with stakeholders. Why did this happen? A likely factor, discussed in a later section of the report, is that mobile access (a key benefit of cloud-based recruitment technologies) has enabled recruitment professionals to work more efficiently without being tethered to their desks.

From the specific perspective of sales consultants, time spent out

of the office increased with half of all account-focused respondents spending between 10-25 per cent of their time outside and a quarter spending between 26-50 per cent. Interestingly, of the 25 per cent of consultants who did spend between 26-50 per cent of their time out of the office, 78 per cent were cloud recruitment technology users – much higher than the 63 per cent average across all respondents.

Unlike North America, however, there were no true road warriors in the European survey, as no sales consultant spent more than half their time out of the office. With face-to-face meetings being the best way for European sales consultants to win new business, it’s no surprise that there’s been a substantial decrease in the time spent acquiring new clients since last year.

Time Spent Out Of Officefor Meetings (All Respondents)

60%

50%

40%

30%

20%

10%

0%

<10% 10%-25% >50%

2011 2012

26%-50%

48%

40%35%

42%

15% 15%2% 3%

12

ATS/crm cHANgES iN PercePTioN

Importance of ATS/CRM Technology to Recruitment Professionals

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%Extremely Important

2011 2012

SomewhatImportant

Neutral Not Important

64%59%

22%33%

14%6%

0% 3%

Regarding recruitment technology, general perception of its importance decreased since 2011.

Examining cloud recruitment technology users versus non-users, however, it’s clear that those who recognise the value of cloud computing also appreciate the importance of advanced technology – ATS/CRM systems and mobile access to these systems. Only four per cent of cloud users considered ATS/CRM technology to be of no relevance or unimportant, versus the 17 per cent of cloud non-users who felt the same. Therefore, the decrease in overall perception of ATS/CRM importance may be a reflection of the 37 per cent of respondents who didn’t use cloud recruitment solutions. Even if people in this group did use ATS/CRM systems, the fact that these systems weren’t cloud-based could have had a bearing on their perceived value.

Importance of ATS/CRM Technology to

Consultants Who Use Cloud Recruitment Solutions

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%Extremely Important

SomewhatImportant

Neutral Not Important

Use Cloud Do Not Use Cloud

63%

51%

33% 32%

2%

13%

2% 4%

Mobile AccESS: No LoNgEr A NoVELTY

European recruitment professionals actually considered mobile access to their CRM recruitment systems less important in 2012 than they did in 2011. Only 38.4 per cent of recruitment professionals we polled considered mobile CRM access “extremely important” in 2012, versus 56.3 per cent who felt so in 2011. In total, 83.4 per cent considered mobile CRM either “somewhat important” or “extremely important” in 2011. A year later, only 76.3 per cent did.

Importance of Mobile Technology to Respondents

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%Extremely Important

SomewhatImportant

Neutral Not Important

2011 2012

56%

38%

27%

38%

10%19%

6% 5%

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mE

NT

TE

cH

No

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Respondents who used cloud recruitment technology, however, were significantly more likely to appreciate mobile access to their ATS/CRM system. This makes logical sense as only cloud-based recruitment tools allow for completely on-the-go access, and the ability to work from anywhere at any time was the number one benefit of cloud computing according to all respondents. For the large contingent of cloud non-users, it is possible that they didn’t consider the importance of something they hadn’t experienced.

Unsurprisingly, cloud recruitment technology users also spent more time out of the office meeting with clients and prospects than their non-user counterparts – perhaps because of the freedom afforded to them by mobile recruitment access. Twenty-two per cent of cloud users spent at least a quarter of their time out of the office versus only 13 per cent of non-users.

Importance of Mobile Technology to Respondents Who Use Cloud Software

60%

50%

40%

30%

20%

10%

0%

Extremely Important

SomewhatImportant

Neutral Not Important

Use Cloud Do Not Use Cloud

42%

32%

43%

31%

12%

32%

4% 5%

Time Spent Out of Office for Meetings by Cloud Software Users

60%

50%

40%

30%

20%

10%

0%

<10% 10%-25% >50%26%-50%

Use Cloud Do Not Use Cloud

37%44% 42% 44%

18%

10% 4% 3%

A PoT of gold

While 2012 may not have been particularly profitable for recruitment agencies, individual recruitment consultants and executives had reason to be happy. Fifty-eight per cent of respondents stated that their total 2012 remuneration (salary and bonus) increased over 2011. And since 57 per cent of respondents in 2011 reported an increase in remuneration over 2010, it seems to have been a good few years financially for the majority of recruitment professionals. Only 13 per cent of respondents saw a decrease in remuneration in 2012, similar to the 12 per cent who did in 2011.

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2012 Total Remuneration Compared to2011 Total Remuneration

Increased

No Change

Decreased29%

13%

58%

Cloud recruitment technology users had a much better year financially than cloud non-users. Sixty-five per cent of cloud users saw an increase in total remuneration in 2012 versus 47 per cent of cloud non-users. While it’s unknown what role the technology played in contributing to cloud users’ financial success, the data suggests that it did present an advantage.

2012 Total Remuneration Compared to 2011 Total Remuneration for Cloud Users

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%Increased No Change Decreased

Use Cloud Do Not Use Cloud

65%

47%

24%

37%

11% 16%

reMuNerATioN BY JoB roLE

Bullhorn calculated average expected total remuneration for both 2012 and 2013 by job title – board members/C-level executives/owners/managing directors versus vice presidents/directors/managers and recruitment consultants/account managers/sales consultants.

Expected remuneration for board members, C-level executives, MDs, and owners dropped significantly, from £131,250 for 2012 to £93,489 for 2013. Recruitment consultants, account managers, and sales consultants also expected a decrease, from £59,682 to £50,539. However, the opposite was true for vice presidents, directors, and managers, who anticipated an increase from £61,714 to £72,625 year over year. What’s particularly strange about this finding is that exactly the same pattern emerged in North America. Owners and executives saw a decrease in their expected remuneration for 2013 (though nowhere near as substantial as that of Europe) as did recruiters and sales consultants (who saw a more drastic decline than Europe), but VPs, directors, and managers

VPS,direcTorS, ANd MANAgerS

AroUNd THE WorLd SEEm To BE HAViNg

A VErY good YEAr.

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Remuneration Expectation by Role

£140,000

£120,000

£100,000

£80,000

£60,000

£40,000

£20,000

£0

2012 2013

Board / C-Level /Owner / President

Vice President / Director / Manager

Recruiter /Account Manager /

Sales Representative

£131,250

£93,489

£61,714£72,625

£59,682£50,539

predicted a rise in their pay. While remuneration expectations, as with revenue expectations, may have been overly optimistic for 2012, this still doesn’t explain why VPs, directors, and managers around the world seem to be having a very good year at the expense of both their staff and their bosses.

Nearly 79 per cent of respondents expect their total remuneration to increase in 2013, compared to only 1.7 per cent who expect it to decrease. This is higher than the 73.5 per cent of respondents who expected a remuneration increase in 2012, though no one in last year’s survey expected a decrease.

What role, if any, does cloud usage play in influencing remuneration? Though the differences between cloud users’ and cloud non-users’ expected total remuneration for 2013 wasn’t dramatic, cloud users across all titles expect to make more money than non-users. Whether they recruit for, manage, or own their staffing firms, respondents who use cloud recruitment technology are reaping financial rewards.

Remuneration Expectation by Firm Size

£80,000

£70,000

£60,000

£50,000

£40,000

£30,000

£20,000

£10,000

£0

Small Mid-Size Large

2012 2013

£54,353

£67,180£64,143

£72,258 £72,650

£58,795

Remuneration Expectation forUpcoming Year

100%

80%

60%

40%

20%

0%

Increased No Change Decreased

2012 2013

74%79%

27%20%

0% 2%

Remuneration Expectation for 2013 by Cloud User and Role

£120,000

£100,000

£80,000

£60,000

£40,000

£20,000

£0

Board / C-Level /Owner / President

Vice President / Director / Manager

Recruiter /Account Manager /

Sales Representative

Use Cloud Do Not Use Cloud

£96,929 £92,273

£77,500 £71,964

£52,650 £49,519

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EUroPE’S ATWiTTEr WiTH SociAl MediA

Social media remains a popular recruitment tool in Europe. In fact, respondents identified the single biggest opportunity for European recruitment professionals in 2013 as “increased access to passive candidates via social media”.

11% 38%

20%14%

3%

9%5%

Biggest Opportunity in 2013 for Staffing and Recruitment Professionals

Increased Access to Passive Candidates via Social Media

Introducing More Efficient Business Practices and Processes

Sourcing International Candidates

Untapped Growth in Emerging Economies

Increase in Flexible Roles and Workplaces

Increased Business Due to Other Recruiters Ceasing to Trade

Other

Ninety-seven per cent of respondents we polled used social media for recruitment in 2012. All of the people who reported using social media used LinkedIn.

Surprisingly, Europe dominated North America when it came to using Twitter for recruitment, with 70.8 per cent usage in Europe versus 48.8 per cent usage in North America. Only 49 per cent of European respondents used Twitter in 2011. Meanwhile, 47.8 per cent of recruiters used Facebook in 2012, about the same as in 2011, but Google+ usage actually dropped from 20.4 per cent in 2011 to 16.3 per cent in 2012. Additionally, 5.1 per cent of respondents used social networking site Pinterest for recruitment in 2012, more so than in North America.

Social Media Channels Utilized

100%

80%

60%

40%

20%

0%LinkedIn

2011 2012

Twitter Facebook Blogging Google + Pinterest Did Not UseSocial Media

96% 97%

49%

71%

47% 48%

10%17%

20%16%

0% 5% 0% 3%

So

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17

Among the 2.8 per cent of respondents who didn’t use social media for recruitment in 2012, the number one reason reported was “the risk of negative publicity/legal issues” (40 per cent). The next most common reasons were “I am unsure how to use it”, “I don’t know how to measure its effectiveness”, and “my candidates and clients don’t use social media”. In contrast, recruiters in both North America and Australia who didn’t use social media chose not to do so because they didn’t know how to measure its effectiveness or were generally unsure of how it worked. Only in Europe was “the risk of negative publicity/legal issues” a serious concern. It’s unclear whether this is a question of social media being a risky medium, or a reflection of cultural norms.

20%40%

20%

20%

0%

Why Recruitment Professionals Are Not Using Social Media

Risk of Negative Publicity / Legal Issues

Unsure of How to Measure Effectiveness

Unsure of How to Use It

Candidates and Clients Don’t Use Social Media

Too Time Consuming

When asked which social media channels produced candidates that consultants were able to successfully place, the most popular choice was, as in 2011, LinkedIn. Nearly 94 per cent of recruitment professionals placed a candidate they found on LinkedIn in 2012, just as 89.8 per cent had in 2011. Twenty per cent of respondents found luck placing candidates from Twitter (an increase of ten per cent over 2011), while only 9.3 per cent said the same of Facebook. In fact, a higher percentage of respondents placed candidates from Facebook in 2011 than in 2012. Only 2.9 per cent and 2.3 per cent of total recruiters found success with Google+ and Pinterest, respectively. However, since only 5.1 per cent of respondents actually used Pinterest, this represents a success rate of 44.4 per cent.

Social Media Channels Utilized toSuccessfully Place a Candidate

100%

80%

60%

40%

20%

0%LinkedIn

2011 2012

Twitter Facebook Blogging Google + Pinterest

90% 94%

10%

20%14%

9%0%

5% 4% 3% 0% 2%

18

Despite their concerns about the perceived risk with social media, recruitment professionals certainly acknowledged its primary benefits. Almost 78 per cent agreed that “finding passive candidates” was a major benefit, followed by “building brand awareness” and “developing new client leads”.

Biggest Perceived Benefits ofSocial Media Recruitment

100%

80%

60%

40%

20%

0%Find PassiveCandidates

2011 2012

Build Brand Awareness

Develop New Client Leads

NutureClient/Candidate

Reduce JobBoard Cost

Drive Trafficto Website

CommunicateCorporate News

71%78%

49% 48%57%

40%

27% 31%

20%24% 25%

19% 16%13%

Ninety-one per cent of respondents plan to increase their use of LinkedIn in 2013, while 53.8 per cent will invest more heavily in Twitter and 28.7 per cent in Facebook. Blogging also attracted significant support, at 23.4 per cent, which will hopefully result in higher-quality content and interaction between recruitment consultants and candidates.

Social Media Channels Expected to beUtilized More in 2013

100%

80%

60%

40%

20%

0%

LinkedIn Twitter Facebook Blogging Google +

91%

23%18%

54%

29%

Pinterest

8%

NiNeTy-oNe Per ceNT of

reSPoNdeNTS PLAN To

iNcrEASE THEir USE of LiNKEdiN

iN 2013.

19

cA

Nd

idA

TE

Tr

EN

dS

Respondents cited the single biggest challenge facing recruitment professionals in Europe in 2013 as a “lack of skilled candidates”. This was followed by a “weak economic outlook” and “unrealistic client expectations”. A “lack of skilled candidates” was also the biggest challenge according to North American recruiters, though at a slightly smaller percentage. When asked if there was a shortage of skilled candidates in the sectors for which they recruit, 81 per cent of European respondents said yes.

Given that 43 per cent of European respondents recruited for the information

technology industry, amongst others, this perceived talent shortage could be attributed to fierce competition over software engineers and other IT professionals, as well as historically low UK unemployment rates. Interestingly, the number one challenge for 2013 according to Australian respondents – by an extremely wide margin – was a “weak economic outlook” (47 per cent).

When asked if average candidate remuneration had increased, decreased, or stayed the same, the majority of European respondents said it had remained

the same (51.4 per cent), versus 42.4 per cent who said it had increased. Nonetheless, one respondent identified the biggest challenge for 2013 as “candidates over-pricing themselves”. If their particular skills are in demand, however, why wouldn’t candidates “over-price” themselves?

With 42 per cent of European respondents receiving only 1-9 applicants per job post, perhaps the biggest opportunity of 2013 – increased access to passive candidates via social media – will help recruitment consultants pursue IT professionals who are already off the market.

10% 36%

23%

17%

5%

7%

1%1%

Biggest Obstacle in 2013 for Staffing and Recruitment Professionals

Lack of Skilled Candidates

Weak Economic Outlook

Unrealistic Client Expectations

Lack of New Jobs

Lack of Innovation in Sourcing Candidates

Inefficient Candidate Management Systems

Keeping Up with Supply of Contractors

Other

THE TroUBLE WiTH cANdidATeS

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Despite the low average number of applications per job post, certain industries saw far more success than others in attracting candidate attention. The public sector drew the highest numbers of applications per job post at 23, followed by office/clerical jobs at 21. Oddly, advertising/creative/marketing positions drew a high number of applications – 19 – and yet resulted in a terrible aforementioned average hit rate of only eight per cent. It would seem then that many of the candidates applying for such positions, even if staffing agencies consider them high-quality enough to send to a client, simply don’t make the grade.

In contrast, legal job posts attracted an average of just four applicants. This could be indicative of a larger regional problem. While there is a surplus of law school graduates in the United States and not enough jobs for them, there may well be a shortage of solicitors in the United Kingdom.

Executive search companies had a slightly higher average number of applications per job post compared to direct hire, contract, or temporary firms, though not by a large enough margin so as to indicate a substantively improved success rate.

Additionally, users of cloud recruitment technology received more applicants per job post than cloud non-users. There was no real difference between cloud users and cloud non-users in terms of hit rate, so while the former group receives more applications per post, the matter of identifying the right candidates to send on interviews appears to be more reliant on human insight.

Average Candidates Recieved per Job Post by Industry

0

Public Sector

Office / Clerical

Advertising / Creative / Marketing

Accounting / Banking / Finance

Construction

Sales

Information Technology

Scientific / Engineering

Industrial

Real Estate

Energy / Mining

Healthcare

Legal

5 10 15 20 25

23

21

19

18

17

15

15

15

14

14

14

10

4

cANdidATE iNTErEST iN JobS

Average Candidates Recieved Per Job Post by

Use of Cloud Software

18

16

14

12

10

8

6

4

2

0

16

Use Cloud Do Not Use Cloud

13

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Recruitment professionals in Europe continue to be optimistic about the revenue growth potential of each new year, and 2013 is no exception. And while 2012 was an unremarkable year financially, staffing leaders remain committed to expanding both in headcount and geography in 2013. European recruiters excel at leveraging diverse social media for recruitment. Not all technologies are so popular as yet, but they nevertheless hold great promise.

conclusion

Of the 195 staffing professionals who completed our survey, conducted in December 2012, 43 per cent of them recruited for the information technology industry, 23.3 per cent for accounting/banking/finance, and 19.3 per cent for scientific/engineering. Other popular sectors included energy/mining (16.4 per cent) and sales (15.9 per cent). The majority of respondents were from agencies whose staffing

specialisations included direct hire/contingent (73.9 per cent), followed by contract/consulting (58.5 per cent), and executive search/retained (47.3 per cent).

The vast majority of European respondents were from the United Kingdom or Republic of Ireland (89.4 per cent), with 5.8 per cent from other parts of Europe, and 1.4 per cent from the Middle East. In terms of roles and responsibilities, 42.3

per cent of survey-takers were recruiters, account managers, or sales representatives; 33 per cent were board members, C-level executives, owners, or managing directors; 18.5 per cent were vice presidents, directors, or managers; and 5.8 per cent held miscellaneous agency positions.

About the Trends report

Total Number of Sales Consultants at a Firm

<20 63%20 - 100

23%

>100 15%

22

Type of Firms Represented

100%

80%

60%

40%

20%

0%

74%

Direct Hire

59%47%

31%

Contract / Consulting

TemporaryExecutiveSearch

Sectors Primarily Served

0

Information Technology

Accounting / Banking / Finance

Scientific / Engineering

Energy / Mining

Sales

Advertising / Creative / Marketing

Construction

Healthcare

Office / Clerical

Industrial

Legal

Public Sector

Real Estate

10 20 30 40 50 60

43.0%

23.2%

19.3%

16.4%

15.9%

12.1%

9.2%

8.2%

6.8%

3.4%

3.4%

2.9%

1.9%

THE VAST MAJoriTy of reSPoNdeNTS WErE from THE UNiTEd KiNgdom or rEPUBLic of irELANd

(89.4 PEr cENT), WiTH 5.8 PEr cENT from oTHEr PArTS of EUroPE, ANd 1.4 PEr cENT from

THE middLE EAST.

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About BullhornBullhorn® creates software and services that help recruiters put the world to work. For over ten years our innovations have powered the recruiting and staffing operations of fast-growing start-ups up through the world’s largest employment brands. Headquartered in Boston, with offices in St. Louis, Vancouver, London and Sydney, Bullhorn’s recruiting CRM and social recruiting products serve more than 10,000 clients representing nearly 200,000 users across 150 countries.

For more information: Please visit www.bullhorn.co.uk or call +44 203 617 6262.

Bullhorn is a registered trademark of Bullhorn, Inc. All other trademarks contained herein are the property of their respective owners.

UK 0800 50 88 600 • International +44 203 617 6262 • sales@bullhorn.com • @bullhorn

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