Addressing The Recruitment Productivity Puzzle

18/08/2016 15:42 | Updated 18 August 2016

In our current state of political hysteria, it is difficult to take a step back and focus on executing our business objectives, without becoming preoccupied with Brexit woes.

I've spoken to many small businesses who are worried, wondering how our split from the European Union will affect them.

Unfortunately, nobody has given us an all-encompassing answer to calm our nerves.

That's why I believe it is absolutely critical, that we focus on securing and scaling our businesses at their core. By that, I mean investing in ourselves, investing in our people and addressing issues our poor productivity.
Today, every business owner has one thing in common; they're suffering from increased levels of uncertainty in the market, a feeling that systematically stifles growth and investment.

Business owners all over the UK have a big task on their hands. UK labour productivity fell by 1.2% last year; the productivity puzzle is more relevant now than ever before, and we need to ensure our productivity levels reflect success if we want to survive this current economic turmoil.

The recruitment sector is no different. We're all worried about our future access to European talent, and the potential lack of talent attraction appetite across every sector.

Over the past 30 years the recruitment sector has gone through a major evolution.

At the start of my career I used filing cabinets, card boxes, fax machines... Without the internet, as a recruiter you were only as good as your relationships, and your ability to identify and clearly define a job opportunity and seek out the right candidates.

The sector has grown immensely due to increased economic activity and the rise in social recruiting. The sector now generates sales of £299bn globally but, even though associated salaries have increased fourfold, there has been no change in the actual fee income generated per recruiter in the last 30 years.

When I started out, an average month for a recruiter used to be £15K. Now a good month is £10K. Despite the increase in tools and tech resources available to recruiters today, how is it possible that billings have remained on par with what I achieved 30 years ago?

Of the 20,000 recruitment businesses in the UK today, around 70% will never get above 10 heads or generate more than £0.05m in gross profit.
As much as the day-to-day activities of professional recruiters and the tools they use have changed, the most successful fee earners and managers still rely on the traditional recruitment methodology.

A great recruiter understands that to generate trust with clients and provide a valuable service, you need to excel at the entire process, end-to-end, not just one component.

Sadly, over 25% of people joining our industry leave within first 12 months. Why? Because we lack effective training methods.

That's why I've launched Recruitment Guide; the world's first destination hub for recruitment professionals. The Guide hosts a range of tools for recruiters, with help from LinkedIn who have worked in association with us.

I'm dedicated to addressing the issues of productivity and employment rates, which are critical to the enhancement of the UK economy.
Recruitment Guide is my way of making a difference, and giving something back to an industry I love.