Those who have made a living from the recruitment industry for a long time, know that cyclical fluctuations are not only a reality, but guaranteed. We are not selling toilet paper that sell itself. We are selling a service that is completely reliant on business confidence and market sentiment.
When there is growth, there are new projects, there is expansion and thus there is movement. Don’t forget one resignation can cause a chain of resignations and appointments down the line. But if that first resignation doesn’t happen, nor do any of the others. This growth causes a shortage of quality candidates as they have a choice of where to work. Hence the value of the recruiter, who not only finds the good candidate but plays an integral role in getting them to make the move, something an “in-house” HR resource is generally not that good at.
When that growth slows down, there is less movement and thus less choice for the quality candidate. This is when the recruitment market struggles and finds life is not as easy as they thought it was. It comes at them from two sides; firstly, a reduction in the number of roles to be filled and secondly as the candidates are easily identified internal HR recruiters can often find the correct candidate themselves. In situations such as this there is also always an increase in the number of recruiters. The perceived barriers to entry for recruitment are low and thus if a person is retrenched it seems like easy money. Especially when it is easy to find the candidate.
There is only one solution for the good recruiter and that is be proactive. If you are a reactive CV flinger who cold calls a new client, flings a CV and hopes for the best, you will find it very difficult. Years of experience has shown us that in the good times you need to be planning for the bad times. Build those relationships with your trusted clients, earn their respect so when the new entrant into the market shows up, the door will be firmly closed, even at half your rate! We call those relationship consultants as in recruitment, the relationship is everything.
For more information on how to work with one of our relationships driven consultants click on the link below