A recruitment agency can increase placements, hire more consultants and bring in more revenue, yet still become less profitable. We’ve seen it happen repeatedly. In some cases, it creates more pressure on cash flow, more strain on delivery teams and less control over margins.
The difference usually comes down to one thing: whether the business has a financial and operational model that was designed for profitable growth. In this article:
1. What is a recruitment agency financial model
2. Why NFI is the real measure of recruitment business health
3. Margin vs mark-up: common financial misunderstanding
4. What good recruitment agency profitability looks like
5. Fixed costs vs variable costs: know your financial levers
6. Why growth doesn’t solve a weak financial model
7. Conclusion and Frequently Asked Questions
