Lead generation is essential for any recruitment business, as it involves attracting and identifying potential customers interested in the candidates you represent. In today’s competitive market, meaningful conversations with clients and candidates are the most effective way to generate leads.

Candidates are a fantastic source of leads. Researchers/junior consultants speak with five to 10 candidates per day, which amounts to 25-50 people per week and 100-200 per month. If a recruiter fills two jobs per month, they place less than 10% of the candidates screened. Many of the remaining 90% will change jobs sooner or later. Keeping in contact with the best candidates allows you to hear about recent resignations, key trends and developments in your sector.

When it comes to clients, engaging in conversation is crucial to recognise subtle cues indicating their level of interest and buying intent. This requires active listening, strategic questioning and the ability to build rapport.

Use these key strategies to identify and capitalise on sales leads during a conversation:

1. Listen for ‘Pain Points’: Clients often express challenges or frustrations related to your industry. By listening carefully, you can identify opportunities where the type of candidate you place can provide a solution.
2. Ask open-ended questions: Engage clients with open-ended questions that encourage them to share more details about their needs, such as “What challenges are you currently facing in your business?” or “What are your main goals for the next quarter?” These help you position your service as the ideal solution.
3. Identify buying signals: Potential leads often give verbal and non-verbal cues indicating interest. These signals include asking about pricing, requesting case studies, testimonials, or references, comparing your offering with competitors, or expressing urgency about finding a solution. If a prospective client exhibits any of these signals, it’s a strong indication that they are a qualified lead and may be ready to move forward in the sales process.
4. Build trust and establish value: People buy from someone they trust. Focus on adding value to the conversation by providing insights, sharing industry trends and offering solutions tailored to their specific needs. Establishing credibility helps potential leads feel more comfortable and confident. My favourite question to put to a client is, “What is the best way for me to build a business relationship with you and your organisation?”
5. Qualify the lead: Not all prospects are ready to buy immediately. Some may need more nurturing before making a decision. Qualifying a lead involves assessing their budget, decision-making power and timeline. You can do this by asking, “What budget have you allocated for this solution?” or “Who else is involved in the decision-making process?” Understanding where they stand in the buying journey allows you to tailor your follow-up strategy accordingly.
6. Follow up strategically: Even if a client isn’t ready to buy right away, following up with them can keep you ‘top-of-mind’. Send personalised emails, share relevant content, invites to events, podcasts or webinars, or schedule a follow-up call to keep the conversation going. The key is to nurture the lead until they are ready to make a purchasing decision.

By actively listening, identifying ‘pain points’ and recognising buying signals, recruiters can uncover valuable leads during conversations and increase their chances of closing a deal.

Nick Barton founded The Barton Partnership and is co-founder and Investor of Search Chain Partners. In 2024 he won the Recruitment Industry Entrepreneur of the Year Award in the Recruiter Awards.

Image: Nick Barton, Founder of The Barton Partnership