Recruitment Demystified #1 - Career Pathways

When you're trying to grow a recruitment business you will be surrounded by people trying to make it more complicated than it needs to be: don't let them. Every two weeks in recruitment demystified I will share simple things I've learnt along the way that have made my businesses run better, make more money and been far more enjoyable to work in for everyone.

- Liam Humphreys - Profit Coach

Why Career Pathways Matter in Recruitment?

When you were at the still at the sharp end (perhaps you still are), what was one of the most common answer you received when you asked a candidate:

"What's your reason for looking for a new job?"

I guarantee that lack of career progression was right up there. But don't take my word for it:

• A recent CIPD survey said that in over 65% of UK recruitment firms staff turnover has increased since 2022.
• Insights from the Recruitment & Employment Confederation (REC) revealed that 61% of recruitment professionals would stay with their current employer if they could see a clear path for advancement.
• LinkedIn’s 2023 Workforce Learning Report found that 94% of employees would stay longer if their employer invested in their careers.

Convinced?

If not have you ever experienced that gut wrenching moment when one of your stars, a fee machine, who adds value to everything they do, asks for a word on a rainy Monday morning with an unusually sorrowful look in their eye, only to tell you that they're leaving?

I'm getting flashbacks just thinking about it!

If it hasn't happened yet it will and when it does it will stifle your growth, at least for at a while and it may open the exit door a little wider for their peers.

As your business grows. Regardless of how involved you are. How commited you are to your people. Your relationships with will naturally become less intimate and simply relying on your empathy (even if it is your super power) will not be enough.

Besides creating career pathways for your team has huge benefits:

1. Reduced Turnover: Clear pathways reduce the likelihood of consultants looking elsewhere for growth. Thus avoiding short-term loss of revenue and long-term loss of talent.
2. Increased Engagement and Productivity: Engaged employees perform 20% better on average. So if you haven't set these up yet, work out what a 20% jump in your turnover would do for your bottom line!
3. Stronger Talent Pipeline: In a Deloitte survey in 2023 they found ensuring business continuity and effective succession planning was a priority for 54% of UK recruitment leaders.

Key Steps When Creating Career Pathways

Audit What You Have:

Compile a spreadsheet of every fee earner in your business and compare job titles, salaries, comms and billings. I did this once when I joined a ￡20 million staffing business and discovered my top biller was one of my worst rewarded - don't ask me why, I never did figure it out. This will give you a good understanding of what you have and help you:

Define Roles and Progression Milestones

Outline the skills, experience, and outcomes required to advance within your firm. Revenue and placements are obvious and important measures but give some thought to what behaviours you want to drive and design the criteria with that in mind. But less is more - KEEP IT SIMPLE and easy to understand.

Consider the Fork in the Road that everyone who develops a career in recruitment will face one day: become the super biller or embrace a leadership role. This is a huge subject and I will return to it in future newsletters.

Clear, well communicated targets are a great start but in order to get people moving forward:

Invest in Training and Development

Upskilling and reskilling are top drivers for employee engagement, with over 80% of recruiters citing continuous learning as essential to career satisfaction, according to LinkedIn Learning.

Understandably much of your focus will be on technical skills but also take them on a personal development journey. At the Page Group we spent time understanding ours and others personality preferences better by applying Myers Briggs. This was so motivating, made me feel like the business really wanted the best for me and helped me become a better manager and seller by understanding my audience better.

Offer Transparent Compensation and Benefits Aligned with Career Pathways

PayScale’s 2022 Compensation Best Practices Report showed that transparent and fair compensation is one of the top factors for retention. Structure your rewards and benefits in line with progression, adding bonuses or benefits like increased holiday days or flexible work options at key career milestones.

Leverage Internal Mobility and Promotion

The REC has indicated that 40% of UK recruitment professionals prefer to stay with their firm if they see regular internal promotions. Emphasize lateral movement as well, with clear opportunities to switch to other roles or departments for employees looking to expand their skill set.

Encourage Leadership Development

This won't be for everyone but almost 68% of recruitment professionals say they’re interested in leadership roles but lack the pathways to get there. Introduce leadership programs and mentorship that empower staff to step into managerial roles within your firm. A robust leadership program can double the chances of employees staying with your firm for the long term, according to Harvard Business Review.

Trust me - this stuff works. The worst staff retention issue I ever experienced was when I took over a business that was hemorrhaging staff. 120% churn in a calendar year! On my first day three people resigned! This jumped to the top of my priority list and sent such a clear message that I wanted to create a place where success was rewarded, that they had access to a career not just a job. In my first full year labour turnover fell below 30% (industry averages estimated to be c35-45%).

Conclusion: Future-Proofing Your Firm with Career Pathways

In an industry with high turnover and intense competition, creating career pathways that prioritize growth and development is essential. By implementing structured career paths, investing in continuous training, and offering transparency in compensation and promotion practices, you can enhance employee satisfaction, build a strong talent pipeline, and achieve long-term success.

If you want to discuss how you can improve your retention and get your people motivated by growth DM me or call me on 07979 868 013.