Key Success Factors For Recruiters

We’re nearing the end of Q1 2023, and much like other years, there are new insights and trends emerging throughout the recruitment industry.

Staying on top of these trends is important for any recruiter or recruitment agency looking to stay on top of their game.?

Xrecruiter recently compiled an Australian-industry report detailing these trends, and some clear common denominators for success made themselves evident. This article is going to cover these reemerging points of discussion, and what this information tells us about finding success in recruitment.

One of the most apparent trends in the industry can be traced back to the great COVID firing of 2020, where 36% of recruiters lost their job. When it was time to start back up, agency owners kept their smaller teams and enjoyed their lowered operational expenses.?

Now, the average recruitment agency size only has 3 staff, and operates with under $2m in revenue. In fact, 85% of agencies in Australia have less than 10 staff. Self-employed recruiters and micro agencies now contribute to over 50% of the total recruitment revenue in Australia.?

This is in-line with what Shaun McCambridge from Stellar Recruitment told us when he appeared on Confessions of a Recruiter. Shaun found that the most profitable companies by margin, have a staff of 1-10, and once you’re approaching 20 you reach a ‘valley of death.’

Adapting to these changes is a necessity for recruiters in 2023. Technology is a significant part of a recruiter’s job, and it’s evolving daily. Old systems and processes are going to become increasingly irrelevant, while automation is going to save time for the savvy recruiter.?

IBISWorld have a comprehensive list of ‘250 Key Success Factors’ for business, and one of the factors they list for recruitment is having “Access to the latest available and most efficient technology and techniques”.

Recruiters must use the latest technologies to ensure their databases have up-to-date information on applicants and client businesses.?There are also many day-to-day tasks that have been streamlined with the use of AI. Keep an eye open for anything that will save time and opportunity cost.

Agencies running old systems and processes will continue to decline in revenue and market share with increased income volatility. On average, a recruiter with 4 years’ experience would be billing $633,000. If these numbers aren’t being hit, there’s a good chance that old process, tech, and systems are partly to blame.?

Here’s one worth heavily considering when you’re thinking about hiring or retaining staff. Recruiter’s salaries have risen by 24% over the last 5 years, and they continue to climb. If you aren’t taking notice, you’ll be left in the dust. Your revenue won’t be at industry standard, and other agencies offering more attractive salaries will always win.?

Finally, a key to success is in an agency’s BRANDING. What good is it having everything in place when no one knows who you are or what you do?

We recently had Sean Anderson from Hoxo Media on the podcast, and he gave us a masterclass on what recruiters should be doing for with their online presence.?

You want to minimise any confusion or questions when people come across your profiles. Your look should be consistent, your industry stated clearly, and your output should be steady. Recruitment is a people-to-people industry, and Sean suggests branding & content as the best way to get in front of the people.

There is no golden ticket to success, but there are tried and true methods that successful people use to get there. New models are emerging that support the independent recruiter, so a successful agency in 2023 looks a lot smaller than it once did. The future of recruitment is becoming decentralised, independent and co-op.

Keeping your head out of the sand and staying up to date is the best way to assure your success in this future.