Like all industries, the recruitment sector is going through tough times. The post-dotcom boom, a weak global economy, the Iraq war and the outbreak of atypical pneumonia have all contributed to the downward trend.
With fewer recruitment firms and recruiters in the market, there is now only a handful of the established international firms and quality recruiters.
Many firms have diversified their client portfolios to include services, manufacturing, garment and apparel, pharmaceuticals, engineering, building and construction, rather than rely on clients in previously popular areas, such as telecommunications and investment banking.
Some firms have continued to stick to their competency areas and explore new demands at the same time. As an example, credit risk management and compliance are areas that the banks are looking for professionals.
Like in other industries, small recruitment firms are also encountering difficulties. Good money was made during the good times but, without a solid infrastructure and a sustainable client base, these firms have struggled to cope with adversity in recent years.
Those with better financial resources, a strong background and credentials as well as dedicated and experienced teams of consultants are still in operation.
'With less demand in the market, we are focusing on building a better practice and expertise in the business, as well as further developing our relationship with long-standing clients,' says Peter Ard, director, Harvey Nash, an international executive search firm in Hong Kong.
