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Recruiting firms feel the winter chill
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Recruiting firms feel the winter chill
26 Dec 2008 Mumbai: Companies going slow on their recruitment process, and in many cases opting for a freeze, have hit the recruitment firms hard.
December-January period is considered the best for these companies as they recruit people in large numbers during this period. However, that has not been the case this time. Recruitment firms have resorted to cost cutting due to the slowdown and like their clients have themselves been going easy on hiring.
Typically, 60% of a hiring firm’s costs are accounted for salaries paid out to its staff. Bangalore-based Corecompt Consultants, a player in the recruitment space catering to sectors like automobile and construction, has witnessed a 50% drop in its business this year. “The situation is very critical and we have to think out of the box to cope with the situation,” said Bimal Chandran, CEO, Corecompt consultants.
In India, there are around 6,000 management recruitment firms. The key cities for the business, apart from the more obvious ones, are Cochin, Ahmedabad, Pune, Chandigarh and Dehradun. “The management recruiting business has witnessed a fall of over 50%. Most of the clients are reluctant to hire,” said Kapil Gupta, head of Mumbai-based agency Shella consultants. Besides, some companies deferring the date of joining for its employees has been a dampener for the recruitment firms.
Source:
http://economictimes.indiatimes.com/Recruiting_firms_feel_the_winter_chill/artic
December-January period is considered the best for these companies as they recruit people in large numbers during this period. However, that has not been the case this time. Recruitment firms have resorted to cost cutting due to the slowdown and like their clients have themselves been going easy on hiring.
Typically, 60% of a hiring firm’s costs are accounted for salaries paid out to its staff. Bangalore-based Corecompt Consultants, a player in the recruitment space catering to sectors like automobile and construction, has witnessed a 50% drop in its business this year. “The situation is very critical and we have to think out of the box to cope with the situation,” said Bimal Chandran, CEO, Corecompt consultants.
In India, there are around 6,000 management recruitment firms. The key cities for the business, apart from the more obvious ones, are Cochin, Ahmedabad, Pune, Chandigarh and Dehradun. “The management recruiting business has witnessed a fall of over 50%. Most of the clients are reluctant to hire,” said Kapil Gupta, head of Mumbai-based agency Shella consultants. Besides, some companies deferring the date of joining for its employees has been a dampener for the recruitment firms.
Source:
http://economictimes.indiatimes.com/Recruiting_firms_feel_the_winter_chill/artic
