IE
Recruiters reeling from hiring freezes
20 June 2008
Ireland’s financial services recruiters are bracing themselves for a period of belt-tightening as hiring freezes, counter-offers and a lack of candidates takes its toll.
Last month Joslin Rowe, a major player in the financial services market, closed down its Irish operation.
Belinda Walmsley of Joslin Rowe tells us: “The business volumes just weren’t there, the rents were rising and the lease was coming to an end, so unfortunately we took the decision to close the Irish office, which is one of our smallest branches. We’re also very niche – covering insurance and the funds industry – so if there’s turbulence, it’s difficult to weather the storm.”
There were seven recruitment consultants in the firm, three of whom have been taken on by Paul Cotter, the former director of Joslin Rowe, for his new venture Cotter Personnel. The other four were made redundant.
Choppy waters ahead
Other Irish recruiters in the financial sector could be in for a rough ride, says Frank Collins, president of the National Recruitment Federation in Ireland.
“There are either formal or informal recruitment freezes in most organisations, so the number of permanent positions has dropped dramatically,” he reports.
It doesn’t help that candidates are also less willing to move than in the past. Perversely, Collins says that organisations with budgetary constraints are prepared to pay increased salaries to prevent staff from moving on.
“Because of these recruitment freezes, managers are much more likely to match an offer because they know if somebody does leave, they’re less likely to get a replacement,” he explains. “Recruitment agencies who may have done a huge amount of work getting somebody a job will then get nothing.”
Larger outfits hardest hit
Cotter thinks the bigger firms will feel the pinch the hardest: “If the market goes down, they lose a bigger chunk and their staff costs are a lot higher. If you’re a smaller firm you’re much more nimble.”
The exception to the rule appears to be Cork-based Premier, a firm that recently acquired recruiters Imprint and has offices in Asia and the Middle East. Premier is being defiantly bullish – aiming to up staff numbers from 820 to over 2,000 by 2012. However, expansion is likely to be global rather than in Ireland.
