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3 Major Mistakes by Recruitment Business Owners that Cost their Business to Fail

An urgent call from a recruitment agency client who required my professional advice informed me that they were having difficulty in getting new clients for their company.

I went to their office and noticed that it was a decent 500-square foot office that could house about ten recruitment consultants.

After understanding the problem, I realized that they had made the following fatal mistakes:

1. Using telemarketers to solicit new business.

Let’s face a cruel fact: The potential clients, which are the Human Resource personnel, are bombarded with many phone calls every single working day from the many thousands of agencies on the market.

Do you really think they might be interested in your business? Most likely not.

The salary you pay for the telemarketer will be a running cost that will not yield any return. It is a simple fact that potential clients who outsource the job search to your company will outsource the same job to 10 or 20 recruitment agencies, putting your chance of closing at a ratio of 1:10 or even 1:20.

Getting job assignments is already tough; closing is even tougher.

With the market tumours in place, the chances of closing any case are practically ZERO!

Solution – Get rid of the telemarketing department, it serves no purpose. Period!  

2. Getting recruitment consultants to solicit for new business.

Recruitment consultants are NOT telemarketers, and if you ask someone who is NOT good in telemarketing, then it will NOT work. For example, I am very good in SEO that creates over 20,000 keywords for my own blog ( within 6 months without using any effort, but if my client asks me to assist them in their accounts payable…. OMG, I will raise my white flag!

In short, telemarketers who are PROFESSIONAL are already having problems getting new clients for recruitment agencies, so how do you expect someone who is not an expert to get the job done?

Solution – Delegate the right job to the right person. Put the wrong person in the wrong job, and you will be out of business.

3. Non-exposure to Internet and social media.

The company was not using Search Engine Optimization (SEO) for their website, so any potential clients who were searching for a recruitment agency could not find them. They were missing a chance to let the public know that THEY EXIST!
Ultimately, I created some keywords for their SEO and blended in email marketing with social media marketing. Their client base of 50 has tripled within 60 days and they are currently serving over 150-200 new job assignments every month!

Summary – To increase your market share, you will need to:

i) Fast and furious, an hour wasted can potentially equal client loss.

ii) Use technology as much as possible. Telemarketers can call 100 clients every day, but with technology, you can reach over 100,000 every business day. Which is better?

iii) Forget whatever you learned last time. Most of it will not work anymore; you need to be updated to the core!

iv) Explore, innovate, and dare to be different, there are no wrong ideas, there are only people who are afraid to fail.

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