Search firm fees back at 1997 levels

Their aggregate revenues fell 18% from the 2001 figure. But at least the pace of decline was slower than the 31% fall recorded in 2001.

Also, unlike the year before, in 2002 several recruiting firms increased their revenues, by between 3% and 51%.

Falls in the share price of listed search firms created significant job turnover, enabling competitors to hire experienced consultants, a report by Hunt-Scanlon said.

Among the largest four US search firms, only Spencer Stuart posted solid revenue gains in 2002. Rival Heidrick & Struggles came 1st in both the US and worldwide rankings of search firms, but its revenues fell by more than 20%, as did those of Korn/Ferry International.

Since hitting all-time highs in 2000, fees from search in the US have fallen 46% at Heidrick and 55% at Korn/Ferry, according to the research.

Hunt-Scanlon will publish further details of its US and global search firm rankings later this month.