Recruiting firms--Embrace the sharing economy

When you run a recruiting firm, the 2 biggestbarriers to scale are team size and location. Location: This determines the type and number of direct clients that a firm has. In case you want to acquire more customers, you would have to either open a new office OR collaborate with a fellow firm in a

In case you want to acquire more customers, you would have to either open a new office OR collaborate with a fellow firm in a neighboring city/country and operate a split fee model. A new office obviously means fresh investment and risk. It involves both fixed and variable cost as well as the ability to devote more time. The second route through the split fee model was opportunistic i.e. one could do it whenever the opportunity presented itself but is slow and one can’t develop a plan around it. Team Size: This is pretty much determined by the number of candidates you could access and at the speed at which you can access them. So if there was a requirement that has multiple positions you know that you couldn’t fill all of them as you just don’t have the bandwidth to source at that speed. In addition, if you were working on sourcing candidates for a particular requirement and a new one came up, you again had to decline as your resources were

A new office obviously means fresh investment and risk. It involves both fixed and variable cost as well as the ability to devote more time. The second route through the split fee model was opportunistic i.e. one could do it whenever the opportunity presented itself but is slow and one can’t develop a plan around it. Team Size: This is pretty much determined by the number of candidates you could access and at the speed at which you can access them. So if there was a requirement that has multiple positions you know that you couldn’t fill all of them as you just don’t have the bandwidth to source at that speed. In addition, if you were working on sourcing candidates for a particular requirement and a new one came up, you again had to decline as your resources were

The second route through the split fee model was opportunistic i.e. one could do it whenever the opportunity presented itself but is slow and one can’t develop a plan around it. Team Size: This is pretty much determined by the number of candidates you could access and at the speed at which you can access them. So if there was a requirement that has multiple positions you know that you couldn’t fill all of them as you just don’t have the bandwidth to source at that speed. In addition, if you were working on sourcing candidates for a particular requirement and a new one came up, you again had to decline as your resources were

Team Size: This is pretty much determined by the number of candidates you could access and at the speed at which you can access them. So if there was a requirement that has multiple positions you know that you couldn’t fill all of them as you just don’t have the bandwidth to source at that speed. In addition, if you were working on sourcing candidates for a particular requirement and a new one came up, you again had to decline as your resources were

So if there was a requirement that has multiple positions you know that you couldn’t fill all of them as you just don’t have the bandwidth to source at that speed. In addition, if you were working on sourcing candidates for a particular requirement and a new one came up, you again had to decline as your resources were

In addition, if you were working on sourcing candidates for a particular requirement and a new one came up, you again had to decline as your resources were utilized. As a result of the above, recruiting firms are always operating under constraints of scale. With the advent of digital platform and job boards, the task of accessing candidates became easier as now one could leverage off

As a result of the above, recruiting firms are always operating under constraints of scale. With the advent of digital platform and job boards, the task of accessing candidates became easier as now one could leverage off a larger available databases of job boards but the constraint of team size and location still remained. With the advent of the sharing economy,


With the advent of the sharing economy, collaboration will be the way forward. Individually firms may still be constrained by the twin problems of location and team size but by sharing their resources across the internet they can collaborate in real time and increase their revenues. This will be the new disruption in the recruiting industry and will put the power to scale back in the hands of business owners who can now choose to share and in the process earn more and scale their revenues. At CBREX we are proud to be able to lead this new wave of “digital sharing” that will herald a new phase in the growth of recruiting as an industry.

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