The correction in the market!

In my last blog, I spoke about “available talent”. A few weeks have gone by and I’m seeing another trend in the market,… Recruiting Contractor rates decreasing.

Most importantly I want to say that I am not talking about retribution or promoting an unacceptable rate schedule due to supply and demand, but, I’ve heard for years from organizations that they are forced to pay too much due to circumstances (another Blog all together).

In the past few weeks I’ve been talking to some organizations that have traditional used “Contract Recruiters” and are now having to cut costs and the Contract recruiters are the first to go.

Albeit a tough spot to be in, I’m seeing the contract recruiters willing to take 60 - 75% of their last fee. Yes, I appreciate that we’re in tough times and need to pay bills, but it’s going to be interesting to see if, when the economy rights itself, organizations will recognize the market correction and the contractor rates are not going to be double of an FTE doing the same function.

Now, it’s not the Contract Recruiter’s who are totally responsible for the rates, if someone was willing to pay you “that rate”,… wouldn’t you take it?”

The market could bare that and quite frankly, the organizations where not willing to push back on the rates. Now that the recession is here and we’re all seeing that a new economy is on the rise, what is this space going to look like?

Until next time,
Richard