Gary Elden, recently-promoted CEO at UK-headquartered international recruitment group SThree, declared a few weeks ago that “Whatever 2013 has in store for us … we will make the best of it,” (see SThree ‘making the best of it’). Well, he will certainly have his work cut out! The prolonged economic woe in Europe is sapping employment confidence to the extent that the decline in SThree’s permanent recruitment gross profit (GP) accelerated from 6% in Q4 2012 (to 25th Nov.) to 12% in Q1 2013 (to 24th Feb. ). But ‘people still need people’ – at least on a temporary basis – and SThree’s contractor GP rose by 6% in Q1, though slower than the 11% rise the prior quarter. Net net, group GP fell by 3%.
The contrast in employment confidence between Europe and the rest of the world is stark. Permanent recruitment GP declined by 24% in UK/Ireland, by 26% in Benelux, and by 39% in France. Beyond Europe, permanent recruitment GP rose by 10%. This was as much to do with SThree’s relentless drive to expand well beyond its UK roots, as it is with an equally intense desire to reduce dependence on ICT recruitment. Indeed GP from international markets now comprises 68% of the total (Q1 2012: 65%) and non-ICT GP is now 46% (Q1 2012: 43%).
Over recent years SThree has consolidated its multiple brands down to just four (was as high as 11 if I recall correctly) and each is becoming increasingly focused on specific high growth vertical disciplines such as Energy & Engineering (Progressive), Financial Services (Huxley), and Pharmaceuticals & Biotech (Real Staffing), though the provision of ICT skills still permeates through all brands.’ Founding brand’ Computer Futures remains entirely ICT-driven.
SThree has weathered previous recessions better than most. Elden is unlikely to let anything different happen on his watch.