The end of last year and the beginning of this year are carrying a great deal of hope and pressure on independent recruiters. With the landscape looking positive yet still uncertain, this is the time to create your plan to increase recruiter revenue in 2021 and perhaps diversify the sources of your bottom line. Industry consultants for the recruiting industry offer suggestions on how to develop a plan to achieve the goals you set. These non-traditional options inspire independent recruiters to work with clients and candidates in 2021 in new ways.
1. Extended Direct Recruitment
Extended Direct allows the Manager the ability to manage his budget more effectively, especially given the current state of the world amidst the pandemic. Fees can be extended over 2-3 months or 2 different years. For this service an administrative fee is added to the billing. That fee generally ranges from 2-4% of the billing.
Example: Salary $100,000 x 25% = $25,000 fee…billed over 4 months
$6,250 + $187.50 (3% extended direct fee) = $6,437.50
Over the course of the contract you would receive your fee plus $750.00 in administrative costs.
2. Split Fee Placements
Are you currently making split fee placements? If not, you may want to consider this option as a way to better serve your clients and candidates. Isn’t 50% of a fee better than no fee? Independent recruiters who make split fee placements serve their clients better than those who don’t by being able to increase the pool of candidates in their niche by working with other recruiters. In addition, they ask for and fill positions located on other continents because they are confident their trading partners will be able to assist them. On the candidate side, a recruiter making split fee placements is able to provide more opportunities to candidates.
Independent recruiters can increase their revenue by developing informal networks of other independent recruiters interested in splitting fees. Another option is for a recruiter or recruiting firm to consider joining a formal split fee placement network.
All of a recruiter’s business doesn’t have to result from split fee placements. Decide on a target percent of your revenue and create actions steps to meet your target.
3. Upsell and Cross Sell
Existing customers are 50% more likely to try new products and spend 31% more, on average, when compared to new customers, which translates to cross sells and upsells to your existing clients. Instead of focusing on bringing on new clients that you have no deep relationship with, a few options could exist for getting more from your existing clients as it is proven it is It is 7 times more expensive to attract a new customer than it is to retain an existing one. Here are some ideas for add-on services:
- Interview Development and Training
- Resume Screening
- Interview Scheduling
- Phone Screening
- Payroll Services
- Skills Testing
- Compliance Screening
- Reference Checking
Do you have any other suggestions as to how independent recruiters may increase recruiter revenue in 2021?