The global staffing industry is worth $400 billion. If you want to claim a huge portion of that pie, there comes the point when you have to confront a critical question: are we ready to scale up?
Recruitment is a competitive industry where trends evolve, and so do relevant technologies. These unwavering advancements in the field make it incredibly demanding to discern when it’s time to go bigger. However, there are indicators you could rely on for an informed decision.
First, there’s your ability to retain talents. You’re likely doing things right if you have a steady pool of highly-equipped recruits at any given time. The same is true if you sustain a steady revenue stream from multiple clients willing to stick with you for the long haul.
Should those prerequisites apply to your recruitment enterprise, it’s time to expand. Get behind the following strategies to ensure the process goes as smoothly as possible.
1. Focus on Human Resources
The first order of business is finding the best talents and bringing them into your organization. You cannot expect to scale up by retaining the current size of your team. Doing so might stretch your staff too thin to the point of breaking. That could lead to misfires in both your recruitment and marketing efforts.
To avoid having inadequate human resources jeopardize your operations, as soon as you decide to expand, get moving with hiring. Recruit top-notch HR experts so that you land the best talents to sell. Recruit top-notch marketers so that you find the best clients to service.
2. Prioritize Retention
A high turnover rate is detrimental to any business. In the recruitment industry, where teams need to equip themselves with a specialized skill set, frequent quitters become an even bigger problem. After all, training new hires would mean going back to the drawing board sans assurance of what the outcome might be.
That’s why it’s crucial to keep your employees happy. Start with a competitive remuneration package.
3. Consider Outsourcing HR Functions
You’re a recruitment agency, which probably means you believe in the power of outsourcing. So why not get behind outsourcing, too? For instance, consider recruiting an agency to handle HR functions. That way, you can streamline your in-house team and focus on sales-forward efforts as an organization. That will serve your expansion plans well.
4. Elevate Marketing
This is another business function you can outsource. Alternatively, you can opt for a DIY approach, especially if you want to be hands-on and have faith in what your in-house team can bring to the table marketing-wise.
Either way, an elevated marketing strategy should supplement your expansion goals. Otherwise, you’ll find yourself investing more and more resources into your operations without yielding significant monetary gains.
5. Get Financial Help
A lack of resources is one of the most common hindrances to scaling up a business. This challenge applies to all types of industries, and the recruitment niche is no exception. Thankfully, you have viable options in terms of funding. Consider partnering with an EOR.
An Employee-of-Record (EOR) can accomplish cash flow services on your behalf. For example, they can fund payroll so you can recruit more. They can also collect and manage your client fees.
6. Invest in Technology
Supplement your scaling efforts with the right recruitment technology. To ensure that you invest with precision, map out your needs. Which functions require a boost? What existing technologies demand an update?
There are many ways in which the right technology can power up your expansion plans. For starters, there’s the opportunity for automation. If you haven’t yet, it’s high time to automate repetitive tasks so your team can better maximize their hours and energy.
Various opportunities for diversification are available. For starters, there’s the geographical aspect. If you cater exclusively to local clients, you might want to dip your toes into the foreign market this time.
There’s also service diversification. For example, you can rebrand your organization to encompass recruitment sub-categories like recruitment process outsourcing (RPO) and recruitment-as-a-service (RaaS). You can also branch out from contract to permanent agreements or vice versa. Whatever diversification plans you pursue, ensure they align with your long-term business vision.
Wrapping It Up
Recruitment agencies basically work for two sets of clients: the talent pool they have to satisfy so that they don’t look for greener pastures and the organizations whose operations they have to support by providing quality staff. Juggling these expectations can be daunting. But if you do it well, the rewards are aplenty. One such reward is the opportunity to grow your business.
It pays to pursue growth and expansion when the opportunity arises. Sure, it will demand refocusing of energies and realigning resources, but those efforts will be worth your time. That is, if you go about the process with as much precision and expertise as possible.