The Federal Association of German Management Consultancies (BDU) has reviewed the performance of the HR consulting sector in 2021, declaring it a record-breaking year for the industry. Arne Adrian, Managing Director of PAWLIK Recruiters and board member of the BDU’s HR consulting division, shares insights into the key success factors behind this achievement and offers his outlook for the current year.
How did the German economy’s recovery in 2021 impact HR consultancies?
The year 2021 was the most successful year in the history of the recruitment industry. Revenue grew by an impressive 17% to €2.7 billion, far surpassing even the most optimistic forecasts. The sector is experiencing sustained growth. Over the past decade, HR consultancies have increased their turnover by 80%, growing nearly three times faster than the overall economy.
What is driving this recent surge?
A key factor driving this success is the rapid transformation of the market into a candidate-driven landscape. Not long ago, companies could rely on receiving a flood of applications in response to a job posting, often without needing external assistance. Today, the situation is entirely different, even for prominent organizations. Candidates willing to make a career move rarely apply proactively anymore; instead, they wait to be approached with opportunities.
But companies are aware of this shift, right?
Yes, but in-house recruitment efforts often fall short. Recruitment consultancies have a clear edge when it comes to direct sourcing. They leverage advanced digital search tools, extensive networks, and specialized expertise. Moreover, candidates often respond more positively when approached by a recruitment consultancy rather than directly by a company.
How challenging is it for the experts to fill vacancies?
The recruitment landscape is becoming increasingly difficult, even for consultancies. On average, it takes over 12 weeks and outreach to 110 candidates to fill a single position. Despite these challenges, HR consultancies successfully placed candidates in 76,000 roles last year – an increase of nearly 10,000 compared to the previous year.
What’s the outlook for the current year?
The first half of the year has shown a strong upward trend. However, we are noticing growing uncertainty regarding the overall economic situation. For the full year, we anticipate reaching €3 billion in revenue, which would mark yet another record-breaking year for the industry.
