Rising corporate profit and an increase in the number of businesses will spur industry growth
New York, NY (PRWEB) March 19, 2015
The Executive Search Recruiters industry assists businesses in their search, recruitment and placement of open executive and senior management positions. Companies in the industry help clients by developing strategies and attracting suitable candidates that will fit the cultural and professional characteristics of a business. Over the past five years, demand for these services has increased considerably as companies resuming previous operations since the recession or expanding into new markets have created new positions for executives. Meanwhile, the challenges of operating a business in an increasingly globalized and digitalized economy have encouraged companies to outsource executive search tasks to industry operators, rather than relying on internal hiring divisions. Overall, industry revenue is expected to rise over the five years to 2015. Revenue is expected to increase in 2015 as rising corporate profit and high business sentiment continues to drive demand.
According to IBISWorld Industry Analyst Ibrahim Yucel, “The five-year period began with an impressive boost in revenue as rising corporate levels triggered a renewal in investment and new business activity, which opened up new positions for senior management candidates.” Revenue fell in 2012 due to a slight hiccup in business sentiment levels midway through the period. However, the industry has grown steadily since 2013 as clients that had previously tried to cut costs by relying on in-house recruiting departments once again sought the expertise of professional recruiting firms.
Over the next five years, revenue is expected to grow at a slower rate as industry performance is increasingly constrained by a slowdown in business sentiment and the national unemployment rate, as well as intensifying competition from internal hiring departments and traditional staffing agencies. “In order to minimize costs, companies will continue to rely on internal human resource and recruitment departments rather than industry operators, especially for middle management positions,” says Yucel. Overall, industry revenue is expected to grow at an average annual rate of over the five years to 2020. Increased competition from external sources will also constrain industry profitability, although this trend will be offset as firms increasingly offer higher-margin talent management solutions as a part of a broader executive management services portfolio.
For more information, visit IBISWorld’s Executive Search Recruiters in the US industry report page.
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IBISWorld industry Report Key Topics
This industry provides executive search, recruitment and placement services for clients with specific executive and senior management requirements. Industry firms develop a search strategy and position specification based on the culture and needs of the client. Operators research, identify, screen and interview candidates; verify candidate qualifications; and assist in final offer negotiations and assimilation of the selected candidate.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
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Barriers to Entry
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