Why recruitment business size isn’t everything | 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/ --- The vast majority of recruitment companies employ 10 people or less and many are a 1 or 2 person band. An enduring myth with scaleability is that growth is just about adding more clients, more staff, more revenue. To grow a scaleable businesses you need to retain your shape as you grow - and that’s where most businesses go wrong. First of all, you need to keep your staff happy as that is where growing businesses can lose their way - as they get bigger, they lose sight of their biggest asset, their people. Ditto, your clients - when a company grows quickly without the right support and structure in place, service levels with clients can deteriorate. Lastly, you need to keep profitability up - often companies continue to grow their turnovers, sometimes dramatically, but profits remain small. 8 seems to be the magic number before things can start to drift if the shape isn’t kept. Above 8 employees and you can no longer manage by proximity so you’re in danger of becoming a yo-yo company - quickly growing, then making redundancies, and then going again, and so on. It is all too easy to outgrow management strength, losing shape as you grow.
