Staff Turnover Now 50%!
Recruitment firms are turning over HALF their team every year! Australian staffing companies with 21 to 40 employees are replacing almost half of their team every year, according to data released by RIBreport and APositive.
This is a staggering waste of money, time, resources and mental health for all involved. In 20 years of helping recruitment companies grow, I have never heard of staff turnover reaching these lofty levels. The reasons are many – huge demand for recruitment consultants (1,700 open jobs on Seek) means tight supply and increasingly risky hiring decisions. There is still low investment in training and leadership development while many new starters are not given nearly enough support.
One of the best ways to grow a profitable recruitment business is to take on a smaller group of high quality people and support them with resourcers (see our Offshore section on the website) so they can spend more time in the market away from their screens and thereby make more placements. They will be more productive, feel better supported, earn more money and are less likely to leave.
If you are a owner or manager keen to explore offshore resourcing as a way of reducing staff turnover, making more placements and dramatically reducing cost – please send me a note and I can forward you a copy of our proven Business Case For Offshore Resourcing.
Right now I am also working on a partnership model whereby quality private recruitment companies can work together to share costs, client opportunities, ideas and support to create better succession and potential exit value. This takes the pressure off growing too fast and wasting hundreds of thousands of dollars on staff turnover. It means firms can concentrate on servicing their target market professionally and profitably while building more tangible business value. Please let me know if you would like more information.
Email Tony Hall, Navigator Consulting, firstname.lastname@example.org