The executive search industry is eagerly awaiting 2004 after Hunt Scanlon Advisors, a market research firm, released a survey predicting that fees for the search profession will see single-digit growth from 2004 onwards. Fees for research consultancy may be as high as $16 billion by 2007.
Over 60% of the survey respondents said they plan to increase their search consultancy operations over the next 12-to-18 months, though Hunt Scanlon warn that recruitment will not reach the heights of the technology boom.
"While we don't see search industry revenue levels reverting to the internet era, there are several positive signs in the marketplace that provide a framework for healthy growth," says Brian Lee, chief market strategist at Hunt Scanlon. Lee cites improved corporate earnings and a long-term reduction in HR departments as drivers behind recruitment.
The prospects for future growth, both for the recruitment industry and for corporates, are encouraging. "At some point we will experience an uptick in hiring activity since employers can no longer achieve further productivity gains with their existing workforce and therefore need to begin focusing on top-line growth," Lee adds. The positive news follows a decidedly flat 2003 for the recruitment industry.