The fact that many businesses are pondering whether they can retain their existing employees, is not good news for recruitment consultants.

Overall, businesses are expected to become leaner and the employment agencies are also expected to contract – a number of insolvencies have been recorded. There has been no specific government help for the sector, other than the various loan schemes and furlough for employees.

Here at Company Debt, we have significant experience in both closing and restructuring recruitment consultancies. Get in touch for a free, no-obligation discussion about your situation with one of our licensed insolvency practitioners.

Recruitment Consultants Pressure Points

Fewer roles to fill
Fewer candidates because of furlough
Rise of online job sites and recruitment through social media

What are the Reasons for Recruitment Consultancy Insolvency?

Many in the sector say that their clients typically imposed a recruitment freeze once the UK went into lockdown early in 2020 and that there remains no clear sign of recovery. Meanwhile, consultancies also report there were fewer candidates coming forward as they preferred being furloughed at home and did not want alternative employment.

Consultancies also suffered through the rise of online job sites and that a role could be posted on LinkedIn, for example, free of charge. However, some agencies have remained in reasonable shape, particularly if they are able to provide high levels of support to clients, so this might mean placing large numbers of workers and at short notice, perhaps for the NHS or in essential areas like waste management. Some workers in important sectors like agriculture have left the country, but it remains to be seen if agencies will be able to find UK-based workers to fill these jobs.

Strong relationship building and sales skills are a core part of the industry and with staff furloughed, businesses were left in a weakened position – the exception could be those that work in highly specialist fields. If insolvency has occurred, in terms of finding a way forward, a recruitment consultant may be able to merge or sell its book of business to another firm, but this will depend on its state of health and there can be no guarantees.

Help for your insolvent recruitment consultancy

If your recruitment consultancy is experiencing difficulties, you should not delay seeking advice. Business owners need to address problems and if they put this off, then their options become more limited.

Company Debt provides expert support and advice on the next steps for an insolvent business, whether rescue, recovery, or liquidation.

Knowledge – Insight – Solutions

We are fully licensed and accredited insolvency practitioners based in north London, and with decades of combined partner experience in helping directors find positive solutions to business challenges.

Our goal is first to understand your situation as fully as we can, and then to explain the range of options available to you.

We focus on practical advice, without jargon. We practice total transparency around costs and fee structures. Our wish is to support you as fully as possible so that you can emerge from this situation in the best possible situation.

As a first step, simply book in a call with one of our team to learn more about our approach, and to take advantage of a fee consultation that carries no obligation.

Book My Consultation

If you need an experienced insolvency practitioner or business rescue specialist, seek advice now.

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