This post is from guest blogger Scott King of Kings Resources in Brisbane, Queensland, Australia. Scott is a longtime member of NPAworldwide and is currently serving on our board of directors. Kings Resources specializes in the placement of contract and direct-hire information technology professionals.
I am a 24-year agency recruitment veteran. I have held sales and management roles within my industry, and I have always found this work challenging and rewarding. Having worked for recruitment agencies of all sizes, I can never remember a period where our differentiator in the market can be to work with – not against – each other. Why do I think now that this is more relevant than say 10 years ago?
- Technology has made our industry vulnerable, with clients finding many ways to secure candidates without our specialised help.
- Clients spend money on talent acquisition, involving strategies and methods to find and stay in contact with the best candidates. Many ex-agency recruiters are now talent acquisition specialists or internal recruiters.
- The competition in our industry is high and this has led to a reduction of fees in our market…along with pressure from clients engaging a range of procurement initiatives to reduce our fees.
- Long-term arrangements – I think for many recruitment agencies, the potential to win new business becomes harder given many clients are choosing long-term arrangements with fewer suppliers, thus reducing our potential client base.
So how can recruitment agencies grow and have a significant differentiator in this ever-changing market?
I have found that an inclusive perspective on our industry has been beneficial. I am a keen supporter of working with other agencies to ensure the best result for our businesses, clients and candidates. By this, I mean sharing roles and candidates…and splitting fees during the process. Half of a $20,000 fee is better than no fee.
How have I done this?
I joined NPAworldwide, a global fee splitting network consisting of 500 like-minded agencies. There are other formal and informal networks within our industry, but NPAWorldwide is one of the oldest and most respected within our market. The many partners are all ethical and operate quite inclusively.
I became inclusive with my clients, contractors and candidates. I am upfront about our margins so they know we are not charging exorbitant fees. I also feel being inclusive ensures longer relationships for all parties.
Sharing work with other agencies has seen the following changes in my business:
- Working in many varied sectors
- Responding quicker with good candidates
- Not relying on generic searching and advertising to be my only source of candidates
- Delivering quality
- Growing my market by sharing with other agencies who may have the client or candidate relationship
- Maintaining long term relationships with my clients and candidates
Most of all, my business maintains its specialisation – the agency recruiter’s ability to fill the role – the core reason clients use us.
In summary being more inclusive could help your business to grow in this ever-changing market.
