When recruiters face a potentially down market, they must take precautions to recession-proof their firm. Depending on the status quo is not enough. You may find yourself losing clients, missing out on opportunities, and experiencing a reduction in profitability. This article addresses some ways in which you can prepare your firm to better weather coming storms, maintain your client base, minimize risk of profitability loss, and perhaps even gain market share. Fine-tuning your operation will give you an advantage over the competition!
Client Focus
Don’t be a salesperson but become a service provider to your clients. Find out what their pain points are and offer to help. Become their trusted advisor. If you are the go-to recruiter for your clients, your ability to ride through rough waters is enhanced.
Know the Marketplace
Look at the big picture and know current expectations – salary ranges, work-from-home (WFH) options, hybrid work schedules, current market analysis, new companies in the market and new technologies. Keep current with local and industry trends. As of September 2024, health care, professional and business services and government have added to the work force.
If you’re worried that your current specialty is going to slow down or be replaced during a time of uncertainty, look at expanding your base. Research growth potential in new job titles that you want to move into and partner with a trusted advisor. Look at industries that are recession proof. According to Amanda Cardoso, writing for The Muse, “Recession-proof jobs are those that aren’t affected by an economic downturn and tend to stay in demand regardless of how good or bad the economy is.”1 Government jobs, healthcare, education, computer and IT including cybersecurity roles are expected to grow within the next 8-10 years.
According to Andy Medici, Senior Reporter at The Playbook, The Business Journals, September 4, 2024, smaller business, with 10-49 employees, are laying off employees at a higher rate than large companies with 250 or more employees. “Small Business are now the ones more likely to be cutting workers while bigger businesses are holding onto them or even adding employees.”2
Get Your Message Out
Be a consistent contributor on social media. You must keep your name prominently displayed in the marketplace by all means available. Emails & text messages should be sent out regularly in a thoughtful way, but with the caveat that you do not want to become a nuisance or be considered a spammer! Of course, the most important message delivered is via phone or in-person contact with your clients. This “Personal Touch” demonstrates to your client that you have their best interests at heart.
Know Your Key Performance Indicators
Take your last successful placement and build upon it. What did you do right? How can you improve on success? Can you apply this model to a different market niche? Ask yourself these questions and fine-tune your organization!
A useful strategy is to track your successes by job titles and industry. From this you may be able to discern trends that can be worked to your advantage. An example is the statistic that in 2024, more CEO’s have retired or left the workforce more than any other year over the past 20 years.2 What is driving this trend? Perhaps this high-value resource can be tempted back into the market with a contract position!
Defend and Maintain Your Reputation
No business is better than bad business. Research all of your clients’ financial history to determine if they are a financial risk. Look at indicators including slow accounts payable, non- pay, and tax liens. You should be known for working with reputable clients and always acting with integrity. Your reputation will follow you and earn you continuing business as well as new business from referrals.
Attitude
Be positive – even when you don’t feel like it! People like to be around positive people. Your clients will look forward to talking with you and following your successes. Any challenge becomes an opportunity to show what you can do. A positive can-do attitude will help keep your clients relying on you for their staffing needs.
Continuous Improvement & Community Service
New emerging technologies and shifting trends can have great impact on a recruiter’s business. Work on new certifications to stay current. Join an association to expand your network. Be active in your community and take advantage of the opportunity of helping others. Be sure to announce any new recognitions or successes via your social media accounts. Your commitment to the community cements your good reputation and demonstrates your connection with the marketplace.
Follow these steppingstones on the pathway to success for your search and staffing firm to improve your overall performance and enhance your profitability! If you have any questions or would like to explore any of these ideas, please feel free to contact me. I would be more than happy to help you in any way possible!
Judy Collins CPCC
President
Judy Collins Staffing Resources, LLC
713-858-2677
judy@jcsrllc.com
1 Cardoso, Amanda. “67 Recession-Proof Jobs to Consider in 2024.” The Muse, August 16, 2024.
2 Medici, Andy. “Layoffs climb at certain types of businesses as job market cools.” The Business Journals, September 4, 2024.
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