If you are running any business, recruitment agencies included, it's no time to be proud if you are to survive the current crisis. Already some big name companies are in trouble and this will filter back down the line to smaller recruitment agencies if they are not smart with their strategy.
Audit your suppliers. Recruitment agencies may have more than 20 to 30 suppliers on a regular basis. The chances are that at least some of these, given the right pressure will be able to offer a more competitive deal than you are on. Contact them and say you will be looking for a cheaper supplier, and see what they can offer to try and hang on to your business. If they can, they will, now is not the time to be loosing long term customers.
Where contracts are nearing an end, make sure you ask at least 3 new potential suppliers to quote for your business. This is no time to stay with a supplier or to pick a new one because you like the salesman. Let them know they're up against several others and see if they will chop their prices to compete, make the current financial pressure work for you and you can reduce your costs.
Review your advertising spend. Think carefully before you reduce this, however, it is worth looking at the return on investment of your advertising media. When things are good, recruitment agencies can be guilty of simply running with 'what is' without questioning if it's the best option. Take a closer look, if any one isn't giving a return then spend it on something that will.
Consider your staff levels. I know it's not great to think about this one, but for most recruitment agencies, staff will be the biggest regular outgoing. If you can see tough times into the future it may be as well to cut back now and survive to better times, you will at least have the opportunity to up-size again when things improve. If you don't cut back soon enough, things can quickly get out of hand and leave you short...and finished.
It's not all bad news for recruitment agencies looking to move their business forwards. One agencies demise is another's opportunity. When a recruitment agency goes bust, somebody somewhere will likely recover the pieces of their business. Although the impact of the credit crunch is to shrink markets, ultimately when there are less players left in the market to chase the remaining opportunities things may be even better than before.
The economy is struggling and with it so many recruitment agencies will be struggling too. Like all business scenarios it is survival of the fittest. Here are just some ideas to help make sure that your recruitment agency remains one of the fittest until things improve.
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