Pareto Principle 80-20 rule in the Recruitment Agency Business.

The 80/20 Pareto’s Principle states that, for many events, it is estimated that roughly 80% of the results come from 20% of the action. How is this principle able to assist recruitment agency or manpower agencies?

For Clients

This is to state that 80% of recruitment agency sales come from 20% of your clients.  In other words, if you have 100 clients, 20 clients will bring you 80% of your overall sales, and the other 80 clients will ONLY bring you 20% of the business.

TIPS: How do you take advantage of this? Pretty simple: focus 80% of your time on 20% of your clients, and 20% of your time on the other 80% who are only producing 20% of the business. In fact, if you want to be EXTREMELY productive, identify the list of them and FOCUS ALL your time on the 20%. This will actually push your sales by at least another 50% – 100%. Try this, and you will be making more sales and profit in no time.

For Recruitment Consultants

Well, based on this principle, 20% of the recruitment consultants will bring you 80% of your business, and the other 80% of them actually bring you only 20% of the business. This is a very sad story in the eyes of the boss of the company, but it is true in many cases. In this case, you will likely to hire 10 recruitment consultants or recruiters and only 2 will likely to produce results, that is to say, that because of this Pareto Principle, 80-20 rule you will likely be losing quite a fair bit of salary on recruitment consultant that is not producing.

TIPS: How do you take advantage of this? You can actually ensure that the top 20% are motivated and continue to give them room to excel even more. Make sure you make them very happy because they are your 80% sales generators. In the meantime, you might want to let go of the people that are not productive and hire more potential consultants. If you are lucky, you might be able to find a few more consultants that are pretty good.

Management of Time

Twenty percent of your time will be spent on 80% of your productivity.

Productive activities include talking to clients, prospecting, and building rapport with clients, candidates, and staff. Non-productive activities include chit-chatting, playing games, checking updates from Facebook, gossiping, and queuing up to buy coffee or tea, etc.

TIPS:  Identify YOUR own list of activities that are productive and those that are not.  Turn the non-productive time into more productive activities, and you will be able to double or even triple your output. Try it! It works like wonder!

For Candidates

Apparently, 80% of the candidates you see will not be the right potential candidates for your clients; as such, only 20% of them will give you the huge chunk of 80% of their business.

This means that for every 10 candidates you interview, only two will bring you good business.

TIPS:  Make sure you filter your candidates VERY carefully; if you have doubts, drop them. Filter them even when you are using “telephone interview” before you meet them, it is better to drop them now than to waste your time.

This way, not only are you going to be productive, but it will also save you plenty of time, and you will still get plenty of closure using the least resources.

The 80/20 Pareto’s Principle in the recruitment agency business works very well. Follow it faithfully, and you can at least DOUBLE your productivity.