As the UK exits the downturn recruitment businesses need to drive up their margins or risk undervaluing their services according to a leading staffing industry figure.

David Spencer-Percival made the comments at Success in Tougher Times: Going for Growth, an event hosted by two of the leading industry suppliers, IT specialists Kamanchi and online marketing consultancy 4MAT.

A founding director of Huntress, David Spencer-Percival is now CEO of Spencer Ogden, an oil and gas recruiter which he launched at the beginning of 2010 with Sir Peter Ogden, founder of IT firm Computacenter.

“Everyone slashed margins during the recession which was the right the thing to do,” said David. “But now the industry has got to start pushing margins back up or we’ll get stuck on recessionary margins in a growing economy. You have to believe in the service you are providing and explain the recruitment process and the value you are adding to your clients. Sometimes you even have to walk away from business.”

Tristan Ramus, MD of Hamilton Bradshaw Human Capital, supported the call for higher margins while acknowledging that it would present a challenge. “You need to demonstrate where the value lies in the service you offer and train people to hold margins,” he said.

The event was hosted by Jeff Grout, formerly UK MD of Robert Half and now a leading motivational speaker, author and performance coach.

It also featured Paul Marsden CEO of Twenty Recruitment who emphasised the importance of clear branding and marketing strategies to compete effectively as the UK exits the downturn.