This is a guest post from Anthony McCormack founder at Mosaic by Macstaff, as part of our Recruiting Weekly Series. Anthony shares his thoughts on how your recruitment agency can cope with a recession.
What a difference six months makes. I wrote a blog back in November 2019 just as the uncertainty over the general election compounded the existing uncertainty over BREXIT.
Unfortunately, as the COVID19 pandemic rapidly progresses into an economic emergency, the recession ready recruitment advice I wrote about has never been more relevant! Let’s revisit the key points which I’ve updated to be relevant during this Corona crisis and in the following months.
Whisper it gently, but there is likely to be a recession just around the corner. What do you need to do to batten down the hatches and get through it successfully and realistically?
The landscape is uncertain for clients and candidates. I hate to be one of the first to use the dreaded ‘R-word’; however, I pay attention to what’s going on, and as a veteran of two previous recessions in recruitment, I know that the rules of the game change dramatically during one.
As with evolution though, the strongest, (or more accurately the most adaptable), will survive.
This blog is your wake-up call. It’s a helpful guide and reassuring pep-talk to make sure your recruitment business is still with us in the next 6 – 12 months and beyond.
Don’t panic during a recession
Market downturns can have a dramatic and disproportionate effect on the recruitment industry. I’ve been there before though and can confirm there is no benefit to panicking. Just keep controlling the controllable. Whether you like it or not ‘Keep calm and carry on’ is a good mantra. Regardless of economic circumstances, some things remain the same, the world still turns, and people will still be hiring and firing.
Work twice as hard (but keep in mind it is for half the results)
Individual consultants, recruitment companies and sectors can always perform well in a struggling market. However, if the cake is shrinking, you’re going to want a bigger slice! Back in the 2008 recession, I was with a different recruitment business. The MD told us we would have to work twice as hard for half the results. Not exactly appealing at the time but with hindsight, it was fair warning.
Create as much headspace as possible
We all have our limits, especially when it comes to managing stress. This time around the recession (if it does hit) will come off the back of extraordinary circumstances. Wherever and whenever possible, limit other stresses that might come from your family, relationships and finances. Some factors will be outside your control, but the more headspace you have, the better.
Manage your finances
Linking to the point about working twice as hard for half the results, you’re going to have to get moneywise, or even more moneywise. Thankfully, there are supportive schemes in place this time to help small businesses. Either way, there will be a lag before grants and loans come through, and you are very likely to be earning less right now. Many people and particularly those in small or start-up recruitment businesses don’t have a lot of breathing space between incomings and outgoings. Make sure you are proactive and spend less! You might need to explore ways to add in additional income streams.
Flex your Terms
Let’s be honest; the recruitment sector can be renowned for its ego. Dropping your fees is never popular. However, it is sensible to look at your terms now and be flexible as we return to work, and the market becomes more competitive. The ‘we’re all in it together’ mindset might be short-lived when it comes to cash flow. If your clients simply haven’t got the cash to start with, can you still support them? At the end of 2019, Macstaff created an offering with some great discounts to clients registering batches of 10+ jobs in 2020. Maybe that’s a pipedream for now!
Diversify and focus on hotspots
If you follow me on social media, you’ll know I love a good personal development book. “Who moved my cheese?”, is a great one for times like these. Your current clients or industry sector may not be offering you the biggest ‘bang for your buck’ either now or in the future. Think about where you can diversify and focus on hotspots in the market. For example, Macstaff is focussing on the service and repair sector for consumer goods. This typically performs when consumers are both home more and tightening their belts.
Build relationships
OK, you should be doing this anyway but if not, get onto it. We know recruitment is about relationships. You need to be more than a salesperson; you’re aiming for trusted advisor or friend even! Times like these can expose weak or one-sided relationships, so do work on them. Be sincere and empathetic.
Stockpile and nurture candidates
One advantage of recruiting in a recession (or lockdown as we currently are) is that it may be possible to recruit more high-quality candidates as demand for jobs unusually out-strips supply. Take this opportunity to register candidates while you have the chance, give amazing service and advice. There is so much uncertainty around now. Offer that stability, be a sounding board and you will hopefully be placing people in the not too distant future.
Finally, be human and empathetic
Recession is an exceptionally tough time for job-seeking marketing. Coming off the back of a global event, the likes of which we have never seen before only adds to the anxiety. If your candidates were hit by unexpected redundancy, furloughing and financial hardship – they won’t be skipping into your pipeline. Our job will not be a bed of roses either but remember to be human and empathise! People won’t remember what you said, but they will not forget how you made them feel.
There are no right and wrong answers here, but the advice I was sharing at the tail end of 2019 feels more relevant than ever now. Think about them and be prepared to make tough decisions that best serve you and your recruitment business.
Author, Anthony McCormack – Founder at Mosaic Mosaic by Macstaff
A high performing Recruitment Consultant, Recruitment Manager & Recruitment Director with 20+ years of recruitment agency experience. Founding Consultant, Managing Director and Entrepreneur behind Macstaff and Mosaic for high impact recruitment in Construction, Property, Engineering & Manufacturing, UK & internationally. Proud member of professional industry associations: REC, TEAM, APSCO, NPA Worldwide & Busines West Chambers of Commerce. Published Author of Job Search Job Done, (Your winners guide to job search success).
