A leading recruiter has urged staffing companies to increase their margins.


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A leading recruiter has called upon recruitment agencies to raise their margins, an insight which will be of interest to those looking at recruitment agency accounting.

David Spencer-Percival, a founding director of high profile recruitment company Huntress and current CEO of Spencer Ogden, has drawn attention for the need to look again at margins now that the recession is beginning to lose its grip.

Speaking at Success in Tougher Times: Going for Growth, Mr Spencer Percival said: "Now the industry has got to start pushing margins back up or we'll get stuck on recessionary margins in a growing economy."

He advised that to do this, recruiters need to demonstrate the value for their clients. Sometimes, he added, it may be necessary to turn down business in order to escape recession margins.

Many companies create initiatives to overhaul their processes and services in order to help increase margins as well. Relay Recruiting, a Bradford-based firm, is one such company that salvaged its profits by refocusing its efforts on closer relationships with clients, employers and candidates.

Outsourcing recruitment agency accounting could increase the amount of time companies have to push through such changes.