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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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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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.