6 factors that will shape the agency sector.

In spite of the fact that agency recruitment is under attack on all sides I have no doubt it will survive if only because agencies are “independent” and able to supply any employer whereas in-house recruiters are not. This critical distinction is what agencies should now focus on whilst building candidate-orientated as opposed to client orientated businesses.

The days of working for “clients” who don’t return your emails, don’t pay you on time and regard you as a necessary evil, to quote some of the recent LI discussions posted by embattled recruiters, are over. Now is the time to take back control.

1. The SME market.
   Ask yourself the question: Why do employers use agencies? The “It’s easier than trying to do it ourselves” reason seems to be evaporating as many employers find ways to engage and attract new hires directly. But is this true of all employers or are the well-known brands enjoying the benefits of social media recruitment but in fact the less-well-known employers are lost in the ensuing noise. The agency sector must use its unique independent status to offer the SME sector access to candidates.
   
   
2. The Candidate’s the Client?
   Are employers clients or are candidates clients? What I mean is who do you represent? A Sports Agent will represent his/her client the sports person. So if Wayne Rooney goes to City, his Sports Agent will represent him and City will pay the Agent. Exclusive candidate representation is the way forward which will give agencies a much stronger position in the recruitment process, allow them to deal with any end-user and provide candidates with a better service.
   
   
3. Social Media.
   How does SM work for agencies? Recruiters needs to build and engage with their candidate communities using high quality, relevant content and their independent status to attract candidates who want to understand what’s happening in the fast changing SME markets. Those that are best at it will attract and work with the best Candidates.
   
   
4. Competitive pricing.
   The issue of fees is a tricky one because all agencies feel that they work hard for their revenue whereas many employers think the opposite. It’s the Pied Piper story all over again and we know what happened there! The truth is that agency fees can only fall sustainably if agencies are able to: reduce operating costs and/or increase candidate placements. Building SM candidate pools and joining new channels to the end-user market provided by 3^rd party websites will help agencies become more competitive.

5. Education.
   This is tied up with number 6 and is all about raising standards and being seen to raise standards. Not investing in the CPD of recruitment consultants is a false economy. It’s about individuals taking time out to learn new stuff and being progressive as an industry. Education provided centrally also helps get the industry on the same wavelength.
   
   
6. Leadership.
   Someone needs to find a way of representing the interests of both the bigger players and the thousands of small firms that operate in the market.  They also need to energise and unify the sector by rolling out initiatives designed to help agencies evolve. Recruiters have endured years of poor or zero representation and so winning back their support and subscriptions is challenging but nevertheless an essential part of taking a big step forward.