What would increasing your profit margin by 2% mean for your business? What would 5% mean?
The Staffing Industry has struggled the past couple of years, and more agencies are selling themselves on lower markups. How do you compete in this new market that we find ourselves in? Here are some ways to earn a higher margin:
- As part of your process, find a way to solve a common business problem beyond filling open positions. You have to be different, and put your clients business challenges at the forefront as you create or adjust your policies and procedures.
- Hold quarterly business reviews with your clients. Welcome constructive criticism, and even seek it out. No company or agency is perfect, and there is always room to improve. This will improve your relationships and continuous improvement will help you earn the business.
- Be the expert in the local hiring market. Do you know the unemployment rate in your county? Do you know what legislation is coming up that may impact the hiring and staffing market? Do you regularly advise your clients on new laws that they need to be compliant on? If your answer is "no" to any of these, you should improve on this to earn the higher markup.
- Know your KPI's at all times. If you're in sales and your prospect asks you what your average turnover rate is, can you answer with verifiable data? Do you know your average time to fill or your fill ratios? Knowing these will help you improve your numbers, but can also be a key differentiator if you are ahead of your competition.
- If you are good on all items above, can your sales and marketing teams properly demonstrate their value on a sales call, client call, or email campaign? If you are great in these areas, but aren't properly demonstrating this, you will leave profits on the table when signing new clients.
About me: I genuinely get excited to see companies grow, which is why I'm in consulting. My methodologies that I've created over many years in the industry are repeatable and will without a doubt lead to growth.
As a consultant, my deals are always structured where a large portion of my fee is tied to your growth because any expert should put their money where their mouth is. Reach out today for a free consultation call.
Professional Staffing Manager and Direct Hire Recruiter
10 个月Love this Steve! Very valuable information. One thing I've learned over the years is, Not All Business is Good Business. We have to position ourselves as a true business partner and not just another vendor.