The 3 Key Challenges Facing Recruitment Companies Today

AUG 12, 202451 MIN
Podcast Archives - Superfast Recruitment

The 3 Key Challenges Facing Recruitment Companies Today

AUG 12, 202451 MIN

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As recruitment business owners, we’re all too familiar with the challenges of attracting, retaining, and developing talent.

Recently, I had the pleasure of speaking with Howard Greenwood, a seasoned recruitment expert with over 30 years of experience in the industry.

Howard shared invaluable insights on the current state of recruitment, the evolving landscape of business development, and the role of technology in our sector.

Howard identified three primary challenges that recruitment companies are grappling with:

  1. Attracting and retaining recruiters
  2. Adapting to changing business development practices
  3. Effectively utilising technology

Let’s delve into each of these areas and explore Howard’s advice on tackling them.

1. Attracting And Retaining Talent: A Focus On Behaviours And Team Fit

Regarding attracting and retaining talent, Howard emphasised the importance of focusing on behaviours and team fit rather than solely on skills. He pointed out a common pitfall in recruitment: “We recruit for a position, and we recruit based on skills. We remove people from those positions because of their behaviours.”

This insight highlights the need to shift our approach when hiring for our own companies. Instead of fixating on finding someone with the perfect skill set, we should prioritise candidates whose behaviours and attributes align with our team’s ethos and values.

Howard suggested a three-pronged approach to hiring:

  1. Behaviours: Identify the behaviours that align with your company’s values and culture.
  2. Will to do the job: Ensure the candidate is genuinely motivated to perform the role.
  3. Skills: Consider the technical abilities required for the position.

By prioritising behaviours and motivation over skills, we’re more likely to build a cohesive team that works well together and stays with the company long-term.

Developing Your Team: The Importance Of Ongoing Training

One of the most striking points Howard made was about the need for continuous training and development. He challenged the traditional approach of providing minimal training and expecting immediate results:

“We recruit easy and train hard. And I think we’re going to start to change that around. We’ve got to start to train hard so we can make recruitment easier.”

Howard advocated for a comprehensive training programme that extends well beyond the initial onboarding period. He suggested implementing:

  • A 13-week initial training package
  • A second 13-week training package
  • Ongoing development throughout the first year and beyond

This approach helps new recruits become more effective more quickly and contributes to higher retention rates and increased billings in the long run.

Understanding Individual Strengths And Team Dynamics

Another crucial aspect of developing your team is recognising and nurturing individual strengths. Howard shared an example from his own experience:

“I hated the candidate side of the marketplace but loved opening doors, and I started to really excel. And I got a resourcer because that resourcer took that pressure off me of finding candidates, but opened up, you know, I think I doubled the following year the amount of money I was billing because that person was finding candidates, and I could now concentrate on developing my own clients and developing new business clients.”

This illustrates the importance of understanding each team member’s strengths and allowing them to specialise in areas where they excel. By doing so, we can create more effective teams and increase overall productivity.

2. Adapting To Changing Business Development Practices and Social Media

Howard’s second major challenge was adapting to evolving business development practices. He stressed that buying habits have changed significantly, and recruitment companies need to adjust their approach accordingly.

In today’s digital age, potential clients often research companies online before making any decisions. Howard pointed out:

“The first thing you do is you go on to Google, you know, I want to buy something, I’ll find it on Google, and then you find a plethora of different prices on Google. So, you look at the cheapest, and then the first thing you look at is the reviews.”

This shift in buying behaviour means that recruitment companies must pay close attention to their online presence and reputation.

Howard recommends something we do with our Superfast Circle clients all the time here at Superfast Recruitment!

  • Developing a strong social media presence
  • Gathering and showcasing client testimonials
  • Maintaining an informative and up-to-date website
  • Utilising email campaigns effectively

While digital presence is crucial, Howard emphasised that the human element remains vital in business development, with many clients craving personal interaction.

“Now they get 20 to 30 email campaigns every single day. And when we went and talked to the end clients and said, right, what is it that you want? They go, oh, we want someone to ring us up and talk!”

This observation suggests that we shouldn’t rely solely on digital marketing efforts. Instead, we should strive to balance our online presence with personal outreach, such as phone calls and face-to-face meetings.

Building Deeper Client Relationships

Howard stressed the importance of developing deeper, more meaningful relationships with clients. He suggested moving beyond the traditional “build the pain” approach and instead focusing on how we can make our clients look good:

“If we change that conversation so right, what can I do? Sharon, to make you look good. How can I make you look good? Well, I need to do this in this project. I need to get that done on this. I need to get these people in here. Right. If I can help you do that to make you look good, that gives you a very different thought process of how you’re working with me.”

This approach helps to position us as partners rather than just service providers, leading to stronger, longer-lasting client relationships.

Howard introduced the concept of viewing client relationships as a flywheel rather than a traditional sales funnel. This approach involves continually engaging with clients at different stages:

  1. Social engagement
  2. Human acquisition
  3. Hearts and minds
  4. Retention

We can maintain and strengthen relationships over time by constantly moving clients through these stages, even when they’re not actively buying from us.

3. Leveraging Technology In Recruitment

The third challenge Howard identified was the effective use of technology in recruitment. He pointed out that many companies aren’t fully utilising the tools they already have:

“You speak to all the CRMs. Most companies only use 20 to 25% of our CRM capability.”

Howard advises that we make sure we’re getting the most out of our existing systems before investing in new technology.

This might involve:

  • Providing thorough training on current CRM systems
  • Exploring additional features of existing software
  • Ensuring different systems are integrated for seamless data flow

 

When considering new technology, Howard suggests focusing on tools that can automate repetitive tasks. This will free up time for recruiters to focus on building relationships with clients and candidates.

The Role Of AI In Recruitment

While acknowledging the potential of AI in recruitment, Howard cautioned against over-reliance on these tools:

“AI is, I think, a really good thing, but only if it’s used correctly. And so, if you want to, you know, make all your job specs and, you know, adverts written in AI. Fine. But then you use that element, you use your behaviours, and you lose those behaviours because AI isn’t quite good enough.”

This advice underscores the importance of maintaining a human touch in our processes, even as we embrace new technologies.

Key Takeaways And Action Steps

As I reflect on my conversation with Howard, several key points stand out:

  1. Focus on behaviours and team fit when hiring for your company
  2. Invest in comprehensive, ongoing training for your team
  3. Recognise and nurture individual strengths within your team
  4. Develop a strong online presence and gather social proof
  5. Balance digital marketing with personal outreach
  6. Build deeper client relationships by focusing on their needs
  7. View client relationships as a flywheel, continually engaging at different stages
  8. Fully utilise existing technology before investing in new tools
  9. Use AI and automation judiciously, maintaining a human touch in your processes

Howard left us with crucial advice: prioritising and tackling one improvement at a time. He suggested:

“Write them down in a list, then prioritise that list. Do one thing at once. Otherwise, if you try to do ten things simultaneously, you’ll fail all those ten things.”

This approach ensures steady progress without becoming overwhelmed by the many areas we want to improve.

In conclusion, while our industry faces significant challenges, there are also numerous opportunities for growth and improvement.

By focusing on our people, adapting our business development practices, and effectively leveraging technology, we can build stronger, more resilient recruitment companies that are well-positioned for future success.

Remember, change doesn’t happen overnight. Take Howard’s advice and start with one area of improvement. With consistent effort and a willingness to adapt, we can all elevate our recruitment practices and achieve greater success in this dynamic industry.

Thanks,

Sharon

About Howard Greenwood

Howard Greenwood, co-founder of Jump Advisory Group, is a prominent figure in the UK recruitment industry with over 25 years of experience.

He has a proven track record of driving revenue and profitability growth, notably at Computer People, where he led the North of England to become the most profitable business unit.

Howard’s leadership philosophy emphasizes people first, focusing on motivating, training, and mentoring individuals to exceed their ambitions.

If you want to learn more about Howard and the team at Jump Advisory, go here.