Building a Purpose-Driven Recruiting Firm

This post originally appeared at www.sendouts.com.

This month at NAPS, Sendouts Vice President of Sales and Marketing, Jonathan Herrick, will be leading a round table discussion. He is passionate about driving recruiting and staffing firm with PURPOSE, as opposed to PROFIT, and will be leading the discussion on "Building a Purpose-Driven Recruiting Firm."

So as a sneak preview, what is the difference between purpose and profit driven firms, and why does it matter?

Profit-Driven Firms are Not Built to Succeed.

John Moore, a marketing consultant who has worked for businesses like Starbucks and Whole Foods, says that a business has to have a reason to exist, otherwise customers will ....

Unless your firm has a reason to exist, your employees will go elsewhere, too - and they do. (Perhaps there is a reason why recruiting firms average 5 to 8 employees instead of a few hundred employees.)

Unfortunately, making money is a poor reason to exist. It's a great goal to have, but it is not a sustaining purpose.

For instance, try explaining to your client that the reason your are calling her is so that you can make money. You probably won't have a very successful sales call.

But, if you explain that your purpose is to help your client become a better company by helping her sign the best candidate in the industry, she's going to feel a lot better about working with you.

No one wants to work with a company that is only concerned with making money. No one wants to work for profit-driven owners to help them line their pockets.

When the opportunity presents itself to move on, most recruiters working in a profit-driven scenario have no problem kissing their employer good-bye and heading to greener (more profitable?) pastures. When the talent leaves, the profits follow.

Purpose-Driven Firms can Bill More in the Long Run

The awesome part about recruiting is that every recruiting firm actually has an incredible purpose: Finding the best talent to build stronger companies.

When firms embrace their purpose:

Employees feel like they are contributing to the company as a whole.
Employees stay with the firm for reasons that transcend how much they are going to bill this year.
Employees develop a greater sense of loyalty to the firm.
Top talent is attracted to a firm that retains its employees.

Companies that retain top talent, foster creativity and innovation, and enjoy greater profitability over time.

What's Your Experience?

Have you experienced working for a purpose-driven firm? How did it compare to the profit driven firm(s) you worked for?

What obstacles are in the way of building purpose at your recruiting or staffing firm?

Weigh in in the comments section, or if you're in Vegas for NAPS in a couple of weeks, participate in Jonathan's round table discussion - he has a lot of passion and insight pertaining to this topic. Stop by and see us at Booth #6!

Comment by Tim Spagnola on September 7, 2011 at 9:51pm: Jessica - thanks for sharing this post with the RBC. What obstacles are in the way of building purpose at your recruiting or staffing firm? That is the question in a perfect world I wish more would ask, but in reality not sure many do. For many it is just not practical to think beyond making/sustaining profit. Yet having said that this post outlines a number of reasons you should at least take a moment to look at things from the bigger picture.

Comment by Dayna Herndon on September 8, 2011 at 10:55am: Hi Jessica, excellent post! The industry, at large, operates a people business on a balance sheet. Three years ago, I exited the industry to build a non-profit media firm, instead of help people build a livelihood. Logic, practicality, and profits steer many of the most important aspects of one's career and sustainability during their lifetime. It is unfortunate, but true. However, as @timspagnola points out, there is a greater question, "What obstacles are in the way?". It centers on the type of leadership, and the people. In my office, my 73 year old boss worked in industry for over 40 years before opening this firm 23 years ago. Jessica, you point out that many firms stay between 5-8 recruiters, this makes my laugh because ours is 6, and has fluctuated for 10 years. I am new to this firm, but not new to recruiting, media, or understanding people. Our biggest obstacle is running a people business like a business.

Honestly, I made a commitment to help others, whether I made money or not. I'm not sure how my boss feels about it, but perhaps it will open up new horizons, and other (internal) profit centers.

Great post!

Comment by Dayna Herndon on September 8, 2011 at 10:56am: Correction, My boss had 30 years of industry experience.... my other math doesn't match up :).

Comment by Ron Pobuta on September 8, 2011 at 11:32am: We have 16 recruiters in our office, and honestly we could have 116 if we had the space (and capital to grow). I could not say distinctly that we are purpose driven company, although my intentions 5 years ago when I came on board here was to do just that, we do operate a very unique model. We/I hire individuals who are self motivated. We do not believe in micro-managing in this business. Every recruiter has their own style or methodology. I have seen past firms that I have worked at try to fit the round peg in the square hole all too often and I have watched top people leave. Most of them have went on to have successful practices themselves. I allow autonomy and individual growth. We provided great resources---whatever they need---to be successful. If we have a purpose, its to foster a environment where a work/life balance is achieved. Work is a not your life, just a part of it. Not everyone wants to be a rockstar and work 12 hour days. All we ask is that you contribute. In the five years since I have been here, we have only lost three people due to resignation.