Big gains for recruiters in the U.S. and abroad;
Signs of limited slowdown appearing.

Greenwich, CT, May 1, 2008 - Hunt-Scanlon Advisors, the market research firm and online information provider to the human capital and executive recruiting industries, today released its 19th annual recruiting industry survey and rankings report. According to the company, continued robust demand for outsourced recruiting services has led the nation's 25 largest executive search firms to post a 21.5 percent jump in revenue, to $1.839 billion. "By nearly every industry measure and metric, 2007 was a very good year for the headhunting industry,” said Scott A. Scanlon, Hunt-Scanlon chairman and CEO. “This year, though, might be a different story.”

As a group, the top 25 U.S. recruiting firms represent a growing piece of the outsourced executive search and human capital staffing business. Seventeen out of the 25, or two-thirds, reported significant double-digit gains in this year's survey helping to lift the industry’s overall performance. Nosal Partners, a spin-off from No. 1-ranked Korn/Ferry International, saw its revenues jump the highest – 70 percent. Other firms with large top-line gains included DHR International, Egon Zehnder International and Slayton Search Partners, among others.

Worldwide, the top five global recruiters also grew by 21 percent, reaching as a group nearly $3 billion in search fees. Four of the top five grew their non-U.S. businesses by more than 16 percent. Only Korn/Ferry experienced relatively flat growth overseas; the firm continues to trade toward the bottom of its 52-week range – nearly 50 percent down on the year. “Apart from all the good news, storm clouds loom – though not for every recruiter this time around,” said Mr. Scanlon. “Recruiters polled at the end of the first quarter expressed concern that as the mortgage mess and credit crisis continue in the U.S., and seep into overseas markets, the industry as a whole might see difficult days ahead. But Hunt-Scanlon believes any downturn will be limited to those firms servicing the financial sectors. We’re just not seeing across-the-board weakness at this juncture.” Just this week, No. 2 Heidrick reported a seven percent decline in its North American business in the last three months; the company has been hurt by higher expenses and a weakness in its American financial services business, which accounted for a third of its total revenue last year.

ABOUT HUNT-SCANLON Hunt-Scanlon Advisors is the leading and most-respected source of news, information and analysis on the human capital industry for executives in human resources, recruitment, diversity and professional services. Through our print, interactive and conference divisions, we cover human capital strategies and trends of the Fortune 1000 and the companies that deliver them valuable recruitment, talent management and diversity products and services that help them succeed. Our information resources are used by executives, researchers and analysts for market intelligence and for making purchasing decisions.

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