2015 was one of the most successful years in recruitment ever. 5,110 new recruitment agencies launched last year. In 1990 there were 88 companies in the UK. Recruitment and Employment Confederation (REC) released figures revealing the total recruitment industry turnover increased by 9.7%.
There has never been a better time to start a recruitment business or get serious about accelerating the growth of yours. So what could get in the way?
TSTC has identified five indicators that slow growth
Lack of Vision
Many businesses get lost in the semantics of what a vision, mission or purpose means. If a business leader cannot clearly articulate the future, he or she will not be able to inspire change, create followers and take people on the journey with them. A weak management team that is unable to execute the vision and game plan will also stop the business from achieving its endgame.
Many small recruitment businesses lack a clear identity, causing confusion amongst employees and customers. The lack of clarity results in a weak candidate community and disengaged clients. The messaging is unclear and lacks impact. The business image does not amplify the business purpose, and the company does not have a well-defined niche.
A business without the right habits in place will severely underperform. However, behaviour is more complicated than people think. It isn’t just about selecting individuals with the right attitude; anyone can become a ‘bad apple’ if the environment isn’t right. Business leaders and management teams that don’t role model the business values are unlikely to create a high-performance culture.
Many recruitment businesses focus on operational and individual objectives and do not have clear business goals to align their staff. Too much focus on turnover, while turnover may increase as headcount increases, it is at the expense of profit, which will limit reinvestment and slow growth. Businesses that don’t focus on what matters and are not committed to the objective will fail to achieve their mission.
Strategies fail because the recruitment firm doesn’t help employees understand why the process is important and how it aligns with the business purpose. A process without a purpose creates disengagement.
Businesses that implement active processes and keep the ‘machine’ running will grow stronger faster.
How to avoid it
The Get Your House in Order framework will help you and your management team get clear about your purpose and mission, create an image that makes you stand out in the competitive recruitment space. You’ll find out how to engage your teams by driving the right values and behaviours. It will also assist you in identifying the right results to focus on and implement processes for consistent performance throughout the business.
Download the FREE GYHIO eBook HERE
Author Andrew Sillitoe