3 ways for recruitment businesses to prepare for the recession | Talent Matters
Ep211 - Building a scaleable, saleable recruitment business - Dave talks to… Mike Ames 🎧 https://open.spotify.com/episode/7boYpJTtsACuNMur3Smjh1?go=1&sp_cid=a2ec75211e0825b859bacd99100759e2&utm_source=embed_player_p&utm_medium=desktop&nd=1 📖 https://wave-rs.co.uk/blog/dave-talks-to-mike-ames-talent-matters-podcast/ --- Unemployment is likely to double to 6%. Businesses that need to hire to operate will continue to recruit staff but those that simply need extra people power to grow will hold off. As a business owner, you need to prepare for the possibility that business will slow dramatically. 1. Make sure business is as productive as possible, that your team is stable, well-trained and happy, that your profit per person is on an upward trajectory. You need to be smashing your OKRs and your KPIs, and all activities need to be monitored to ensure you’re getting the right output. There needs to be no inefficiencies. 2. Ensure you have cash in the bank. Continue to invest in people and tools but be sensible. Keep on top of debts owed and chase to make sure invoices are paid on time. The ideal is to have 6 times your monthly run rate, e.g. if your costs are £10k a month, you need £60k in the bank. That ensures that you won’t run out of money even if you have no business for 6 months. Of course, it is highly unlikely business will completely freeze, which means you should be safe for 12-18 months, which is when we’ll likely come out of the recession. 3. Drill down on clients. On average in a recession companies will use half their normal number of agencies. Be honest and upfront and ask your clients whether you would be one of those clients let go if demand dropped. In a recession, clients can ‘quiet quit’, i.e. just stop giving you work without any communication. You need to get north of that cut.
