on recruitment agencies to raise their margins, an insight which will be of interest to those looking at recruitment agency accounting.
David Spencer-Percival, a founding director of high profile recruitment company Huntress and current CEO of Spencer Ogden, has drawn attention for the need to look again at margins now that the recession is beginning to lose its grip.
Speaking at Success in Tougher Times: Going for Growth, Mr Spencer Percival said: "Now the industry has got to start pushing margins back up or we'll get stuck on recessionary margins in a growing economy."
He advised that to do this, recruiters need to demonstrate the value for their clients. Sometimes, he added, it may be necessary to turn down business in order to escape recession margins.
Many companies create initiatives to overhaul their processes and services in order to help increase margins as well. Relay Recruiting, a Bradford-based firm, is one such company that salvaged its profits by refocusing its efforts on closer relationships with clients, employers and candidates.
Outsourcing recruitment agency accounting could increase the amount of time companies have to push through such changes.…
an invoice to having to wait over 100 days to get paid on 30+ invoices.
Your 100% correct about dealing with the people involved with getting you paid. From those involved with contract negotiations, to all those in the 'approval' signature cycle--to the Accounts Payable person who can "get a cut check" that seems to be missing (lost) in the hubbub of the business process.
First challenge is to push, press, plead...and justify why you need to be paid ASAP in order for you to deliver your recruitment services. Your track record of delivering on business critical concerns weighs in your favor relative to their business critical concerns at contract signing time.
The second and ongoing challenge is to track the status of your payment from date of submitting it to the date it is approved for payment and goes to accounts payable.
Try not to be a pest by befriending key people at each stage. Remind them that you're a recruiter by profession and you will play a role, when the time comes, in job placing their first, second and third born when they come of age. They get such call all the time, so make your call is one of concern with no hostility. Send emails with a Sweet Kitty Face plastered on as your mug...be creative and RESPECTFUL...and get paid. There are really great people involved once you get to know them.…
details. They will do anything necessary to simply make a placement and invoice their customer. They don’t have their customer’s best interests at heart. His only concern is getting paid and getting past the guarantee period!
That statement focuses on the recruiters and their actions.
After being excoriated by professional contingent recruiters who chose not to operate in this fashion you then try to back pedal and say the issue is with the contingency search model. That is not, nor has it ever been the case. The contingency model is just fine when carried out by professional who do have their client’s best interest in mind. Does the contingency model allow for some resume brokers to exist who only care about getting paid.... Of course. Every profession has their own ambulance chasers.
You continue to fail to understand how professional contingent recruiters operate and the sad thing is you are continuing to comment on a business model that you obviously do not understand. Until you understand how to reconcile the contingent business model with being a professional I suggest you read more and learn about the business in which you are supposedly an "expert." Actually reading this blog, instead of continuing to post factually incorrect missives, may be a good place to start. Good day.…
Jerry Albright said:
We've uncovered a few industry facts here - and one of them is a biggie: We can not predict anything.
What you have is a sendout Mike. Don't ring up the credit cards just yet. It is nothing more than a "possible" offer. At that point you will then have just that, an offer.
So what's the problem here?
Until you have an offer for your candidate (and an acceptance....and a start date....and an invoice.....and a payment....) you've got "a shot" at those things happening.
Why not take 2 shots?
Or better yet - oh no! Here I go!
Why don't you ask your client? "Hey, Larry. I'm torn here. I know you're pretty pumped up about Jane's interview Monday - but I've uncovered a sharp guy that is also right on target. Which way would you like to go?"
A rule I learned a few decades ago still holds true: If your client is still taking sendouts - they better be yours!
Added by Joshua Lee at 3:13pm on November 28, 2012