Don't let a boom send you bust!
Larger firms and the smaller boutique operators are often the best equipped to take advantage of robust market conditions as they tend to stay consistent in how they negotiate fees and tend to their margins.
While the first 6 months of 2018 have proven to be the best in a decade, buoyant market conditions demand a tightly run ship. You need to be driving what's happening inside your business not the market!
Somewhere between the large scale recruitment agency resourced to deal with high volume and the niche recruiter that will stay selective about the business they take sits the firms at most risk, those with between 21 and 40 staff and growing.It might sound contrary to suggest that strong market conditions can be hazardous but for those growing a bigger team the proverbial 'Valley of Death' as we call it, looms if your house is not in order.
In fact 93% of firms we spoke to stated that growing a team beyond 20 can be problematic for business.Where to start?
Hiring the right people might sound like a no brainer, but it's the most crucial factor for a robust business model. But it's not only getting them through the door that counts. Ensuring that your team are engaged and have ownership is all that underpins a productive workforce.If you select the right people, and then commit to training, engaging and retaining them then you're on your way.
A growing business can be thwarted with many unexpected hurdles and in busy times, it's imperative to keep an eye on your expenditure and ensure margins are held and the temptation to compete for volume and compromise fees doesn't send your business into a backwards spiral.
Control the costs
Top performing recruitment agencies have a crystal clear view of sales and gross profit per billing staff member and keep an eye on industry results as a benchmark.Reviewing operational costs, drawing regular industry comparisons against your peers and focusing on the average tenure of your billers are key to achieving sustainable growth.
Much like driving a car, you can't move forward without keeping an eye on those around you! Keen to know more then take our complimentary Health Check?
|Tags:Business ProfitabilityRecruitment Agency ProfitStaff TurnoverStaffing and Recruitment|