Can Recruitment Agency Business Really Make Money?

Almost every week, I will be approached by many recruitment agencies and companies who are involved in the recruitment and staffing business and many times the following tricky issues had surfaced and need some help in the followings:

1)      Not able to hire the right recruitment consultants or recruiters
2)      Not able to find enough clients or some cannot even find any client at all
3)      Not able to find candidates, or not able to find quality candidates
4)      Not able to generate more sales to cover the rental and overheads of the recruitment agency business
5)      The company books are in the red and they are not making money and they do not know why this is happening
6)      Unable to retain good recruitment consultants or recruiters, the good ones are always moving to another firm or starting their own recruitment business
7)      Simply do not know how to do the recruitment business at all as they have absolutely no experiences.
8)      Do not know how to expand the company to another level.

Apparently, if you were to look at any the issues above, it really boils down to few key points that we can focus the key points to ensure that the problems can be solved, if most of the problems are solved, the probability of the recruitment agency company making money will be much higher indeed.

Here are some proven solutions that can solve some of the problems above:

1) Positioning 

You will need to position yourself as a specialist in a certain industry so that the clients and candidates will have more trust in you.

You will be fighting with all the general recruitment agencies in terms of the same job orders at a price you do not want to take but you have no choice but to do the job.

When you are not a specialist in a specific industry , you will be bombarded with job orders that you will not be able to fill simply because you do not have the technical skills in terms of the industry and the  connections of the people to get the right kind of quality candidates for your clients.

Take for example, if your previous industry is a makeup artist, you will have attended many classes in professional makeup sessions and get to know many Friend’s and students that are makeup artist. With those kind of connections , you will have a vast pool of makeup artist or bridal makeup artist for you to connect your clients if your client knows you are able to connect to quality makeup artist and not just any makeup artist but quality ones!

Here is another example, let us assumed you are previously working in an air conditional industry and knows many clients and suppliers in the aircon service industry and at the same time you know many technicians that are able to service and do aircon repair. Such skills as very skilled and technical and would required people who have a certain experience in this aspect of aircon servicing to get the job done.

So, if you decided to start a new recruitment agency and basing on your previous aircon industry, you should be going into the aircon industry and supply aircon servicing personnel and technician who are able to do aircon repair services, you can also handle project managers too in this aircon industry.

In this case, not only you let your clients happy, you build your brand and identity well enough so that you are able to charge your client higher because your client knows that you are the expert for the industry.

2) Branding 

Make some effort to create a good logo, if possible get a graphic designer to do it.

Usually, it is not very expensive if you know where to find it.

Some of them will as for a few hundred dollars or even thousands of dollars if they are famous, but generally speaking, it will cost less than $100. Let me know if you need any help, I can get it done in less than $100.00

Beside logo, get involved in social media such as Linkedin, Facebook and Twitter, in fact, the more the merrier but stay within 3-4 social media accounts as too many also make it confusing.

3) Have a great website 

Client and candidate will go to your website and make some judgment about you before giving you the business or sending you the resume.

If you do not have a great website, make one or get someone to do it.

Let me know if you want to get one professional website done in less than $1,000.00. If you do not have any website, go and do it now!

Get a good photography expert to take your photos and your staff photos, first impression does counts in every aspects. If you have some budget , get a videographer to craft out a corporate video for your recruitment agency, the fact that not many recruitment agencies will be willing to hire a videographer for their corporate image and some recruitment agency owners do not think it will help them.

My point is that if you want to be perceived to be the same recruitment agency out there, you will not really stand out of the rest of your competitors. In turns, you will have lesser job orders, your brand will get unnoticed and eventually you will not have enough sales to cover your monthly cost.

4) Using Technology

Email marketing, social media and other software available in the market are there for you to use to make your productively higher by at least 10 – 1000 times better if you were to do it using traditional methods. If you are still lagging behind, it is time to look at it deeper.

5) Soft Skills 

To engage with clients and candidates, you will need to speak fairly well, good in presentation and negotiating skill. If you are lack in these, even if you have the best client and candidate, it will not stay with you forever. Whether it is yourself or your recruitment consultants, pay some money for trainings, join a club such as BNI, rotary club or toastmaster, it will be a worthwhile investment for you to improve your soft skill.

6) Leadership Skills 

To build and motivate a team to excel, you need to have good leadership skill, this can be learned and nobody is born a leader, hence if you are not skillful in leading, you can learn, go to some training in leadership in your local business training school even use YouTube and search on how to become a leader,etc.

You need to start now…

7) A Mentor or Adviser

The problem with most people is that they always think that they are the best in what they are doing, the issue is that they do not know when they make a mistake and until things happen then it will be too late, hence it is always better to look for a mentor or coach who has more experience or expertise in the area to advise you to see how you can do things in a better way.

The problem is you do not know hat you do not know, hence , even until today, I am still leaning new things everyday.

So to answer the question, can recruitment agencies really make money? The recruitment agencies industry definitely can make money if and only when you know what and how to do.

You can refer to my other article on how to start a recruitment agency in this link.

Till then…

Dougles Chan, The Recruitment Guru, Coaching Staffing and Recruitment Agencies Worldwide.