Are Your Clients Ripping You Off And Stealing Your Recruitment Fees?

August 6, 2012

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Diamond Jubilee, Fish ‘n’ Chips & Your Recruitment Business

June 7, 2012

Over the weekend the family and I went to London to celebrate the Queens Diamond Jubilee and we had a great time in the pomp and ceremony of the day despite the lousy weather.

After a long day we were wet, cold and hungry and we decided that as a treat we would visit the oldest fish ‘n’ chip shop in the UK – The world famous Rock & Sole Plaice in Covent Garden.  As you know, fish ‘n’ chips is a traditional English dish and it seemed only appropriate that on this special occasion that we stick with tradition.  Now I don’t know if you have ever had the pleasure of eating there, but it is considered to be the oldest chip shop in the UK, so you can imagine it was pretty busy. The service was OK, but I thought the meal was fabulous and it certainly hit the button as far as we concerned. We were able to take our time and really enjoy the meal after what had been a very long day. The bill came to just over £100 for 4 of us, which included deserts and coffees etc.

At the table next to us was another family of 4 who were clearly upset at what they considered to be a lot of money for a traditional dish of fish ‘n’ chips, and they were heard complaining that they normally only pay a fraction of that when they go to their local chip shop.  As you know, in Covent Garden in London there are many places to go and eat from fine dining to pizza and burger bars, not to mention a few venues where you would be best to wipe your feet on the way out!!!

The interesting thing was that we were quite happy with our meal and did not feel it was appropriate to compare the price we paid with what we would pay at our local shop. I also felt that as there was such a large choice of restaurants and bars in the area it was rather churlish to complain about the price as it was a choice to eat there.

It reminded me of the two types of clients you have to deal with as a recruitment business owner.

First there is what is called the transactional client and this type of client is always looking for the best deal and buys on price and price alone.  If another recruitment firm was to offer the service at 0.5% less this type of client would accept as they have no loyalty. These types of clients think short term and see themselves as the expert and have no desire for you as the supplier to make any profit.  Their biggest fear is could they get it cheaper somewhere else?

Interestingly, the transactional client also tends to make more demands on you, your company and your time as it is all about what they can get from you.   When you work with the transactional client it can be frustrating and certainly tiresome.

Then there is the relational client.  This type of client is looking for an expert recruitment firm.  They are looking for someone they can trust, someone who will meet all their needs and they value the relationship. This type of client also realises that if they shopped around they would almost certainly find a cheaper option, but that is not the most important factor for them.  Their biggest fear is making the wrong choice. The conversation they have with you is about your service with less focus on the price.

As a recruitment business owner you have a choice about who you work with.  If you only wish to work with clients who really appreciate what you do and want to work with you on a ‘win win basis then that is your choice.

You can choose to implement a marketing plan that generates warm leads for you easily and effortlessly, or you can choose to make endless cold calls, the consequences of which are that you become almost desperate when a potential client indicates some interest, even if that client has no loyalty to you or appreciation of what you do.

You can choose to click here  and get access to marketing tools or you can choose to do what you have always done and get the same results.

It really is your choice.

Please note: any adverts on this page are not connected with drewcoaching.


Do you have a business or a job?

February 3, 2011

More importantly do you know the difference?

At least twice a week every week I will get a phone call from a recruitment business owner wanting to discuss business coaching. One of the first things I will look to establish is, if they want to be a “job holder” or a “business owner.”

One of the differences between a job and a business was best explained to me by an accountant, she worked for one of the big four accountancy firms. She explained a job is where you work and you earn money, whereas a business will generate an income whether you work or not.

She also pointed out that when you have a business you have something that has real value to a potential buyer, when you have a job this is of little value to any potential buyers.

Let me explain, whatever your opinion of McDonald’s restaurants what you do know is that wherever in the world you go and order a McDonald’s, the quality, the size of meal and service are pretty consistent. What you also know is you don’t have to be a brain surgeon to work there. The point is that as a business, McDonald’s owner does not have to be there frying the fries or tossing the burger, because the owners have put in place the essential building blocks for creating a business.

The most important thing is your mindset as the business owner; this means when you create your business your vision should be of a business without you doing the prospecting, recruiting etc.

The second building block is the systems. As a recruitment business owner, your marketing should be such that you have a system for generating 10 leads per consultant per month. Did you know that some of the most successful recruitment businesses do just that? And that it takes about two months to put in place?  Also you need a process for following up on those leads i.e. from initial telephone call to offer and start date for the candidate.

Any business owner that wants a business must build a team to deliver. This surprisingly always seems to be the most challenging aspect of building a recruitment business. I always find it quite interesting that a recruiter would find it challenging to recruit a team to create a business. Once the owner puts in place systems and processes for the business, then there is no need to find the elusive “top performing biller” that many recruitment business owners are constantly seeking. That aside why would a “top performer” leave their present company and start all over again with you?

So you have got the right mindset, you have put your systems and processes in place, which has enabled you to recruit individuals with the intellect and potential to achieve the numbers you desire, what next. Well as I am sure you have heard many times “If you can’t measure it you can’t manage it.” In other words what have you put in place that will measure the processes and systems? Do you know what you need to measure? In other words what Key Performance Indicators will you be measuring.

Successful recruitment business owners have acknowledged if the business cannot positively function without them, then it is a job. Business professionals who are running strong recruitment companies have them constructed as organisations and organisations utilise multiple talents and resources to achieve the long term goal of the business.

If you would like to discover if you have a job or a business that maybe of value to a potential buyer then click on the link below and we will send you a questionnaire, to uncover the potential of your business. Simply complete the questionnaire and calculate your points for each answer. Your total score will reveal whether you have a job or a business.

Uncover the potential of your business – DOWNLOAD QUESTIONNAIRE

Wishing you continued success,

Terry Edwards

drewcoaching