You have to be forward-thinking as an agency owner or today’s successes could well mean tomorrow’s failures.
Whether it’s moving into a crowded market with limited opportunities, puncturing your cashflow or growing beyond your means, sooner or later on unsteady ground you will experience a fall.
There’s a reason that 80% of startups fold before their second anniversary and it comes back to being short-sighted.
What’s your business plan, your financial forecasts, which channels do you plan on using and have you mapped your competitors?
Even considering a sector-specific name will come back to haunt you if you later diversify. Try pitching the oil & gas market as Pharma First Recruitment and see how it puts you on the back foot straight away.
The real fate of an agency lies in the talent of the people within it. I don’t need to tell recruiters about the importance of hiring the right people.
Yet, there’s an irony that it’s finding recruitment talent that’s stalling agency growth in 2018.
Almost every conversation I’ve had with agencies over the last year returns to a real difficulty in accessing good recruiters who can grow with them.
We all know good recruiters exist. I’ve worked with plenty. But, there’s also a lot of wrong fits out there, which can put the brakes on scaling.
Whether it’s the low barriers to entry, softer demands in the market, or whatever. Agencies are stalling because they can’t secure and retain the talent to grow with confidence.
There are over 100,000 recruiters working in the industry alone, and ten times that working in transferrable sectors. We all know that most of us fell into this career from teaching, sport, fashion, care, or pasts as semi-professional footballers…
It’s not about how wide the net is being cast but the way we’re attracting talent that needs to be addressed.
You need to think about why talent wants to work for your agency specifically?
There’s sometimes very little between agencies in their processes, rewards and the actual role, which means the battle is being won in how they sell themselves.
Don’t be so tunnel visioned to throw money at Rec2Recs, referrals and job adverts if you’re not first focussing on building an attractive brand that appeals to talent.
Otherwise, you’re just throwing money at a short-term solution to a long-term need.
In 2018 agencies need to stand out in the crowd. To differentiate themselves from the 5,000 other agencies starting each year.
Selling uncapped commission doesn’t mean anything when it’s already a given and a beanbag in your office doesn’t create a culture.
What’s the real salt of your brand?
Employer branding as an avenue for inbound talent is something that’s gone overlooked in recruitment but will play a key role in its future.
If you want to be more than a small man band, and avoid the 80%, then you need a reliable pipeline of talent that’s going to scale with you.
Build a brand with long-term growth in mind.