As the national unemployment rate continues to fall and corporate profit grows, buyers will continue to seek personnel recruitment services.
Los Angeles, CA (PRWEB) November 17, 2013
Personnel recruitment services have a buyer power score of 4.0 out of 5.0. Buyers of personnel recruitment services have a high degree of leverage in the purchasing process. The market’s price level has remained relatively stable in the three years to 2013, and it is expected to remain stable in the three years to 2016. Purchasing power is, however, limited by low profit margins among suppliers that reduce the vendor's ability to reduce prices, rising demand for employee placement and a low availability of substitutes. “Currently, the market’s largest companies include Adecco SA, Kelly Services, Manpower Inc. and Randstand Holding nv,” IBISWorld procurement analyst Andrew Krabeepetcharat says.
No prevailing market price exists for personnel recruitment services because potential employees vary in level of skill and education. “Personnel recruitment companies generally charge based on the salary range and level of skill required, which results in a wide range of prices,” Krabeepetcharat says. According to the most recent Talent Acquisition Factbook by Bersin & Associates, prices range from $2,000 to $7,000 based on the specialization and skill of the employee. Personnel recruitment in the health care field generally costs between $2,000 to $2,400 per hire. However, personnel recruitment for manufacturing ranges between $6,000 to $7,000 per hire.
Prices are expected to rise slowly as the national unemployment rate declines and corporate profit grows. These factors will boost demand for personnel recruitment and cause prices to rise and slightly hamper the buyer's power. Because these economic factors have improved slowly during the past three years, they have mitigated fast price growth.
The upward trend is the result of the rise in the number of personnel recruitment agencies. These factors benefit the majority of buyers who base their purchases on the qualifications and industry knowledge of recruiters rather than price. Despite more bids, buyers still face low purchasing lead times due to the time-sensitive nature of hiring employees, positively affecting buying power.
For more information, visit IBISWorld’s Personnel Recruitment procurement research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to help businesses recruit employees. Personnel recruitment agencies help businesses find potential employees by listing employment vacancies and referring and placing applicants for permanent employment. Personnel recruitment offices earn revenue from commission for successful employee job placements only; people referred or placed are not employees of personnel recruitment offices.
Recent Price Trend
Product Life Cycle
Total Cost of Ownership
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Market Share Concentration
Vendor Financial Benchmarks
Buying Lead Time
Key RFP Elements
Buyer Power Factors
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