Chapter Two: Business Development
A crucial part of our job is to actively engage in activities that are going to generate positions for our candidates. A steady supply of vacancies is essential for us to maximise the number of placements we make.
Where are you now?
Unless your market is highly specialised, you may have hundreds of companies that are potential customers. Knowing where to focus your efforts can be difficult, but assessing your current and known-potential client base is a useful place to start.
It can be helpful to categorise each client by which definition most closely describes your relationship with them. If you are new to a desk, consider the relationship they have with others in your company.
Category Definition A list
Strong ongoing relationship.
Definite need for your services.
Plenty of prior engagement - placements, interviews, meetings, etc.
High levels of commitment.
Confident that the client would contact you if they had a need.
B list
Good relationship.
Definite need for your services.
Some prior engagement - placements (maybe), interviews, meetings, etc.
Some commitment.
Not definite that the client would contact you if they had a need.
C list
Tenuous relationship.
Definite need for your services.
Little prior engagement - occasional interview, speculative submissions, etc.
Little or no commitment.
Doubt that the client would contact you if they had a need.
D list
No relationship.
Unknown need for services.
No prior engagement.
No commitment.
No reason to think the client would contact you if they had a need.
Where do you want to be?
Consistent top performers often have a core group of clients that provide them with a steady stream of jobs. These 'A' list clients usually account for the majority of their billings. New recruiters often look at top performers with envy and think 'I want clients like that' and no wonder: there is no doubt that repeat business is easier than new business.
Repeat clients are more likely to call us with roles, and terms of business are agreed. We get to know these clients and their requirements, making it easier to recognise suitable candidates and present the roles. Repeat clients grow to trust our service and our judgement, making them less likely to engage with our competitors and more likely to listen to our advice. We spend less time knocking on cold doors and more time sourcing candidates and filling jobs.
We want to be where the top billers are: plenty of 'A' clients, other clients heading towards that status, and little time wasted on those that offer little or no potential.
How do you get there?
- Focus on a specific market
Focusing on a specific market makes it easier for you to learn who your prospective clients are, what your candidates actually do, and the key issues concerning both. The knowledge that you gain enables you to give good advice and show credibility. Focusing on a specific market makes you more likely to have multiple opportunities for candidates and multiple prospective candidates for clients. Focusing helps you to build relationships and become known in your market.
- Be proactive
Recruitment is a competitive industry and it is a mistake to think you can sit back and wait for your market to come to you.
The phone is the most effective way to engage with customers on a one-to-one basis, but time constraints mean that we need to employ additional methods to be proactive across all of our potential market. Speculative CV mailers and other marketing material are no replacement for the phone but - if done well - they offer additional ways to reach as wide a market as possible in a time efficient way.
It is also important to look after the clients that are most likely to engage with us: 'A' and 'B' clients. Some recruiters neglect these as they pour their energy into winning new business but it is easier to develop existing relationships than it is to create new ones. Develop new business by all means (it's an essential part of our job!) but don't forget that that effective selling means maintaining existing client relationships too. If we don't look after our customers, someone else will.
- Be persistent
This is so important! Few relationships are cemented in one phone call, but many recruiters who experience a knock-back never try again. This reinforces the client's view that the recruiter wasn't worth engaging with. We have to show our clients that we are serious about doing business with them and that might take several phones calls, some well-targeted mailers, and the help of a referral or two! But if you show a client that you are credible and serious about assisting them, most will give you a chance eventually. After all, persistence is one of the skills you need to fill the roles that other recruiters give up on.
It is easy to become disheartened when you first start to build a desk, and recognising that persistence is a key skill for all recruiters will help you to keep a sense of perspective. These things can take time. Don't give up. Rather than continuing to make first contact calls to a never ending list of prospects, make second and third calls to those that you want to engage with. Sooner or later, you'll catch a break!
- Make time for business development
To have a consistent stream of vacancies, we need to conduct business development activity on a regular basis. If we don't, we soon find ourselves with no vacancies at all. Even if you are busy working on jobs, follow up those leads that are most likely to give you a result and maintain regular contact with your 'A' clients to keep your relationships alive. Regular mailouts can help you to maintain a presence even if you don't have time to contact everyone by phone.
Never assume that today's 'A' client will call you after months, or even weeks, of no contact. If you're not looking after them, your competition soon will be.
- Develop an ear and an eye for opportunity
A lead is information about a potential job or prospective client, and recruiters come across dozens every day. Generating leads is often a secondary objective to other activity, so it's not advisable to drop everything the moment you identify one. Instead, keep a record of the leads you generate to follow up at an appropriate time.
Generating leads
We have the opportunity to generate leads every day and these can come from a variety of sources:
- Candidates
Candidates are mines of information. Their CVs tell us which companies recruit the skills that they have and often who the hiring managers are (as referees). Candidates that are actively looking for work may have applied for other roles or turned jobs down. They often know other candidates with similar skill sets, and whether their own employer is looking for staff. If they accept a new job, their old job usually becomes vacant. They may even be responsible for hiring staff.
- Clients
Not only do clients know what their own hiring needs are, they often know what their colleagues, suppliers and customers are doing. They may have friends who work in similar roles in different companies. Asking clients if they know anyone who might be interested in your service or a particular candidate may prompt them to give you information you wouldn't have otherwise known.
- Colleagues
Colleagues also speak to candidates and clients all day, and may pick up information that is useful for you. However, don't expect colleagues to give you leads if you don't pass any to them.
- Advertised vacancies
It's obvious, but many recruiters don't keep an eye on relevant job boards and other media. At the very least, sign up for job alerts from all the websites that your candidates use. If you're not sure which websites these are, ask them. Not only does this keep you informed of new opportunities, it also gives you an insight into what your competitors are doing.
- Other media
Company websites often advertise vacancies. The wider media including online and print newspapers, business journals and industry body press releases provide information that can be useful, such as upcoming projects, or companies moving to bigger premises. Being 'in the know' also makes it easier for you to converse with clients and shows you have a genuine interest in their business.
- Other sources
A conversation overheard at a party; a quick look at the building directory during a client visit - there are literally countless...
