Can we really build a successful recruitment business for tomorrow's world? My interactive presentation explored what the future of recruitment looks like. I break down how as recruitment leaders, you and your employees can prepare and capitalise on what's to come. Don't just build a recruitment business, create a really great and successful one.
From the Recruitment Agency Expo 2018.
Introduction to Prompt Engineering (Focusing on ChatGPT)
Crazy Optimistic Realism - Building a Successful Recruitment Business Ready for Tomorrow's World.
1. “I would rather be a crazy optimist
than a pessimist that is right”
James Osborne
The Recruitment Network
www.therecruitmentnetwork.com
@TheRecNetwork1
5. lessons from the
saddle
However you look at it, the UK economy is in some
degree of discomfort right now…
> Underinvestment by government
> Delayed investment by large companies
> A loss of confidence
> Falling real wages
> The likely loss of skilled EU workers
> The potential of losing frictionless access to the EU market
> Devaluation
The effects of Brexit?
Market Conditions
8. lessons from the
saddle
Market ConditionsAre these the signs of a looming recession?
> Household Spending Down
> Living Standards Squeezing
> Value of the Pound Dropping
> High Street Sales Slumping
> Retails Sector Growth Declining
> Employer Confidence Falling
> Inflation Rising
> Import Costs Increasing
9. lessons from the
saddle
there's a 33% chance of a
Brexit-induced recession in
the next 6 months
Credit Suisse
www.therecruitmentnetwork.com @TheRecNetwork1
11. lessons from the
saddle
31,500current number of recruitment agencies registered in the UK
818
average number of new recruitment agencies registered in the UK each month from Jan 2017 to Dec 2017
www.therecruitmentnetwork.com @TheRecNetwork1
13. lessons from the
saddle
70,000,000potential number people worldwide could be displaced from their jobs by robots by 2030
30%
estimated number of UK jobs that robots could take over by 2030
www.therecruitmentnetwork.com @TheRecNetwork1
- McKinsey
- PwC
16. lessons from the
saddle
The Global staffing market grew by 5% in 2017 while
online staffing platforms are growing at a rate of
between 40% to 60% per annum *
Talent Pools
* ref: Staffing Industry Analysts
Artificial Intelligence
Video Interviewing
Collaborative Hiring Tools
Gamification
Intelligent Social Channels
Market Conditions
Augmented Reality
Etc… etc… etc…
17. lessons from the
saddle
HR Tech focus is shifting further from automated
processes to automated productivity, linking
everything HR together to allow organisations to
recruit with greater…
agility I speed I efficiency I objectivity
www.therecruitmentnetwork.com @TheRecNetwork1
18. lessons from the
saddle
Diminishing Talent Pools
* ref: United Nations
Talent Pools
Market Conditions
4.2%
the current UK
unemployment rate - the
lowest level since 1975
67%
of HR leaders believe the war
for talent will be one of the
most pressing issues for their
workplace in the near future
by 2047, for the first time in
history, a higher proportion of
people will be aged 60 and
over than under 15 (20.8%)
21%
the number of people of
working age (15-64) for each
person aged 65+ in 2050
(currently circa 8)
3.9
19. lessons from the
saddle
“88% of C-Level executives said that they
are suffering from a skills shortage and
almost all of these think that this is having
a negative impact on growth”
Business Reporter
www.therecruitmentnetwork.com @TheRecNetwork1
20. lessons from the
saddle
The rise of the independent, flexible worker
Talent Pools
Market Conditions
UK Organisations are seeing increasing requests for:
CEOs agree (86%) that this more flexible approach to contracts is
helping to attract the right people and skills.
More flexible working – 72%
Working from Home – 42%
Part Time Working – 37%
Flexible Contracts – 33%
22. lessons from the
saddle
it takes 20 years to build a
reputation and 5 minutes to ruin it
Warren Buffett
www.therecruitmentnetwork.com @TheRecNetwork1
23. lessons from the
saddleCost of Candidate and
Client Acquisition
Referrals
Charge Rates
Customer Retention
Customer Penetration
Employee Engagement
Market Reputation
Talent Pools
Market ConditionsThe impact of getting it wrong
24. lessons from the
saddle
What are people saying about us?
Market Reputation
recruitment consultants are
recruitment consultants are scum
recruitment consultants are
recruitment consultants are liars
recruitment consultants are awful
recruitment consultants are rubbish
recruitment consultants are idiots
recruitment consultants are a waste of time
Talent Pools
Market Conditions
27. lessons from the
saddle
there is huge opportunity
ahead of us, but only some will
capitalise and maximise
a robust compound annual growth rate (CAGR)
9%
ref: REC
www.therecruitmentnetwork.com @TheRecNetwork1
28. lessons from the
saddle
volatility
uncertainty
complexity
ambiguity
tarnished reputation
shifting talent pools
market reality
capitalise
new markets
expanding niches
penetration > positive change
> increasing demand
> complacent competitors
> disorganised buyers
> strong margins
> sustainable growth
what to look for…
consolidate
32. lessons from the
saddle
> You will always have underperformers
> The high performers are a small group of individuals
> The average performers are your “engine room”
> The key is to recruit and manage people appropriately
> Move the underperformers (along or out) quickly
> Get out of the way of the high performers
> Focus your time increasing what “the average” looks like
Engine Room Management
33. lessons from the
saddle
> You will always have underperformers
> The high performers are a small group of individuals
> The average performers are your “engine room”
> The key is to recruit and manage people appropriately
> Move the underperformers (along or out) quickly
> Get out of the way of the high performers
> Focus your time increasing what “the average” looks like
Engine Room Management
34. lessons from the
saddle
a 1% improvement across a number
of key performance levers can
transform the performance and
profitability of your engine room
www.therecruitmentnetwork.com @TheRecNetwork1
35.
36.
37.
38. lessons from the
saddle
A simple example: Tweak Performance Meetings
60 minutes (every Monday morning)
X 18 consultants
X 48 weeks
= 864 consultant hours
By reducing the Monday morning meetings from 60 minutes to 45 minutes, they saved a total of 216
consultant hours, which became used for Reverse Marketing
Presuming an average of 5 CVs per hour going out, that equates to 1,080 CVs
Based on a Conversion Rate of 10:1 (CVs to Interview) that created 108 interviews
Based on a Conversion Rate of 4:1 (Interviews to Placements) that created 27 placements
Based on an average deal value of £6,500 that generated created £175,500 worth of business!
40. lessons from the
saddle
if you don’t know what the
performance levers are that control
your engine room, then you can’t
adjust them to increase the average
www.therecruitmentnetwork.com @TheRecNetwork1
41.
42. profitability based levers
• G.P to O.P Conversion Ratio
• G.P Per Recruiter
• Average GP Day Rate
• No. of Temps / Contractors Out
• Average Temp Margin %
• No. of Perm Placements
• Average Perm Fee (£)
• Average Perm Fee (%)
• Average Debtor Days ()
43. productivity based levers
Internal
• No. of Recruiters ()
• No. of Rookies ()
• No of Underperformers: activity
• No of Underperformers: targets
• Annualised Recruiter Churn
• No. of Interviews
• Interviews Per Head
• Interview / Placement Ratio
• Time to Fill
External
• Customer Spread
• Customer Penetration
• No. of New Customers ()
45. lessons from the
saddle
The markets are not getting harder,
they are just getting different
The volatility of the markets create
new opportunities
Your strategies today should focus
on Tomorrow’s markets
Markets
The competition is there to force
you to up your game
The candidate shortages are
creating more demand for us
Technology is an enabler of the
human process of recruitment
Talent
The reputation of others enables
you to gain competitive advantage
The quality of your service delivery
is your key USP
Your existing customers are where
you will find tomorrow’s growth
Reputation
Performance
Your greatest opportunity for sustained growth is by driving up the middle average of your business
By evaluating the inefficiencies of your existing activities, you create huge opportunities for improving outcomes
www.therecruitmentnetwork.com
46. lessons from the
saddle
Consolidate and lock in your
current customer base, now
Understand the 3-5 year future of
the markets you currently work in
Identify new pockets of growth
within your current markets
Identify new market opportunities
in tomorrow’s growth markets
Markets
Use technology to enable you to
service your customers and
candidates with greater:
• agility
• speed
• efficiency
• objectivity
Keep the client and candidate
interactions humanised and focus
on productivity, not process
Talent
Measure your current market
reputation and act upon it
Deliver celebrity levels of service to
clients and candidates
Use online marketing and social
selling as your power tools
Penetrate your existing client base
and maximise client lifetime values
Reputation
The Engine Room
Replace “aspirational” KPIs with “minimum” standards of performance across each component of your vitality curve
Monitor and make marginal adjustments to the performance levers of the Engine Room
www.therecruitmentnetwork.com
47. lessons from the
saddle
Dear Optimist, Pessimist and Realist,
Whilst you guys were all busy arguing about how full or
empty the glass of water was… I drank it!
Best wishes,
The Opportunist
www.therecruitmentnetwork.com
@TheRecNetwork1
