For recruiters serving some specialist markets, business is booming. For others in adverse markets, there is an understandable tendency to stoically cut operating costs and set sales objectives lower — even gratefully accepting assignments on whatever terms are available. Instead, we should just accept that we work in an overcrowded marketplace and see how we can turn it to our advantage.

Overall, UK labour turnover is remarkably consistent at around 18% (CIPD: ‘Recruitment, retention and labour turnover 2008’). Growth in involuntary turnover (redundancy, dismissal) is balanced by a reduction in voluntary turnover (candidate movement, career change, early retirement).

So, even with some shrinkage in the overall working population, there is still a need for recruitment services, and particularly for improved screening and matching of candidates.

Don’t be tempted to buy business through discounting without a commitment from the client. But remember that line managers, HR and procurement specialists are all looking for ways to reduce cost or boost performance.

Consider those clients with which you have had some success. Have your candidates had high interview/placement ratios, stayed longer or produced better results? Does the client ‘spread bet’ by using a number of different recruiters?

Approach these clients proactively with a well researched proposal. With commitment to 100% of recruitment needs, you can reduce your cost of sale. This can allow you to stock your pipeline with candidates who are pre-qualified for the client, and to dedicate greater resources to bespoke processes for that client.

Be realistic about what you can service. If you have measurable expertise in engineering, or a major pool of local talent, focus on that area alone.

Be prepared to consider undertaking component parts of the recruitment process, such as telephone screening, testing or competency-based interviewing or induction, at fixed fees. You must be rigorous in your delivery of these, but it removes much of the risk of the contingent model.

When you make your approach, ensure that you are making it at the highest realistic level. The research and production of a proposal like this are time consuming and should not be entered into without an expression of interest from those in authority at the client organisation. You may also need access to information and staff for audit purposes which only those at the top of the chain of command can provide.

Make sure that any agreement is in writing, with a ‘valid for’ period and a review date. As market conditions change rapidly, both parties should have a chance to change rates, service levels and levels of commitment. When the agreement is no longer working, this allows either party
to dissolve it without acrimony. You will also want to tie your client to a mutually binding service level agreement, covering areas such as time to respond to CVs and feedback on candidates.

Recent research (Demos: Recruitment 2020) indicates that one factor which is important in identifying those recruitment businesses which are likely to thrive is that they align themselves with the business impact of their services. Can your business demonstrate how you have improved performance or reduced operating costs for your clients? Can you back this up with statistics? If the answer is yes, take that message out to
clients — and start winning major business away from mere order-takers.

TOP TIPS
1. Identify clients where you could deliver better standards or reduce costs if you were guaranteed a bigger share of their business
2. Make proactive approaches at the highest level. Don’t forget that HR and procurement will want to have input
3. Do your homework. You may need to invest time in auditing current procedures and designing processes
4. Consider undertaking isolated parts of the recruitment process for fixed fees
5. Ensure everything is in writing and that the commitment is two-way