Stick to what you know best

14-Jan-2009

No one is immune to the credit squeeze that’s gripping the UK, and the recruitment sector is no exception to the rule.

Consultants and agencies must stay on their game to ensure that the industry remains intact. If economic predictions are to be believed then the country is well and truly in a recession, so it really is survival of the fittest. Recruitment consultants can no longer rely on loyal clients and natural footfall to help boost margins — it’s simply not happening. If agencies want to stay in business they must
react quickly and smartly to the current economic climate by diversifying their services.

Efforts should be made to develop and strengthen the company in a low-risk and costeffective way. Added-value services will provide
consultancies with additional revenue streams and, more importantly, help maintain retention levels both in terms of clients and candidates. Potential areas of expansion include outplacement support, career and CV guidance, and client assessment and development services.

Sector specialists such as construction, commercial property and banking are undoubtedly feeling the pinch more than most. But the health of the economy is such that even industrial players are having to tighten their belts as companies recruit fewer people in response to a fall in consumer demand and spending.

The risk of being in business is enough without eyeing potential acquisition targets. There will, of course, be a select number of cash heavy consultancies that will see this as an opportunity to hoover up companies in difficulty, but for most it’s a case of holding firm and ticking to what you do best.

The credit crunch is very real for recruiters. The key is to look after your clients, don’t take any unnecessary risks and explore alternative services to add value to your business. If you can save your clients money by developing and managing their account in a more
efficient manner, then this will not only improve your relationship in the long term, but ultimately will save your business.

• Keith Porter - director, selection and development specialist, Advance Selection