This doesn’t have to be the case. Your recruiting agency can be more profitable with talent crowdsourcing!
Imagine pumping up your profit margin past 50%, say theoretically past 85%, approaching 100%. Moving swiftly to maximize your revenue and minimize costs. Sounds pretty good, right?
This isn’t an all too distant fantasy. Plain and simple, it is actually a reality for thousands of recruiting firms across the country. And many of your competitors are already there.
Think about the expenses your recruiting business incurs in activity that is NOT recruiting: researching for new business/client contacts, working thoroughly on the vendor selection process, prospecting and cold calling prospective customers.In fact, according to Jon Guidi, co-founder at the recruiting analytics company Hirabl, many recruiters spend 95% (see charts above for a breakdown) of their time doing business development, following up with clients, and other non-recruiting activity. This is time spent away from recruiting. And, therefore, it is time spent away from actually making money.
No surprise that recruiting/staffing companies end up taking home just a little over 4% of the revenue they generate.
Yet, the solution seems so simple: Reduce hard and soft operational and business development costs. Find a way to work with more employers and have your recruiters work on more jobs, without spending so much time and money actually chasing prospects.
With crowdsourcing applied to recruiting (Talent Crowdsourcing) you have the ability to pump up your profit margin.
Here are three ways Talent Crowdsourcing can pump up your firm’s profit margin:
1. Talent Crowdsourcing Platforms bring awesome jobs to you.
Talent Crowdsourcing Platforms are typically led by experts in business development, who know how to attract and acquire new business. They do not do this in their spare time. They do not do it in addition to core business activities: like recruiting, for example!
At Reflik, we onboard many new clients every month. This provides our community of recruiters with a wide range of jobs to work on, across industries and functional roles. Without having to hunt for new clients themselves, our recruiting partners fill the jobs they specialize in and receive payments directly.
2. Most Talent Crowdsourcing service providers build and manage relationships with employers.
The administrative burden involved in following up with clients for feedback is crippling for recruiting firms.
Think of the time and money your recruiting firm spends on administrative tasks – like following up with employers for feedback, figuring out the “must-haves” and “good-to-haves.” All those costs dissipate when you turn to Talent Crowdsourcing Platforms like Reflik.
Most Talent Crowdsourcing Platforms have account managers. At Reflik, our team of Account Managers builds close relationship with our clients.
As these relationships grow, as jobs are filled, trust sets in. We begin to bring on more jobs from these clients to the Platform. This way, there is no scarcity of jobs on our platform and our community of individual recruiters and recruiting agencies can focus on fillings jobs instead of finding them!
At Reflik, we provide our recruiters the latest, most up-to-date information about each and every single job on our platform every hour of every day of the week.
Moreover, we host webinars for members of our recruiting community where questions are asked by recruiters and answered live by our clients. Reflik webinars are recorded and made available to all members of the recruiting community. Click here to learn more about Reflik Webinars.
3. Talent Crowdsourcing helps you optimize your firm’s recruiter utilization. No more benched recruiters!
No matter its size, your recruiting firm has most likely gone through “slow times.”
There is a fine balance between the number of jobs your firm is working on and the number of recruiters working for your firm. With a larger team, you may have more recruiters on your “bench” than you can utilize. With a smaller team, you are looking to ramp up revenue and invest that revenue into hiring more recruiters.
When this fine balance act slips one way or the other, you need help.
Talent Crowdsourcing Platforms provide you the jobs to correct your balancing act. If you do not have enough jobs to fully engage your recruiting staff, to fully maximize your revenue potential, open your firm up to positions available on the Reflik Talent Crowdsourcing Platform. Engage your recruiters on the Reflik Talent Crowdsourcing Platform.
There is no denying it: The average fee companies pay recruiting agencies to fill positions is 20% of the base salary. But say you’re trying to fill a Front-End Developer position for a leading marketing automation software company. Base salary is $100,000. When you fill it, that’s $20,000 in your company’s bank account.
But, in the time you spent finding the software company, acquiring their business, following up with them for feedback, and finally filling that position – how many similar positions could you have filled? How much money did you spend on non-revenue-generating activities? How much could you have saved by focusing your business entirely on recruiting?
Unfortunately, these are questions you can answer only for yourself. Despite what many people may say, you know your company is unique. You must test out Talent Crowdsourcing for yourself. And you can do so right now.
At Reflik, the typical placement fee for any job is 10% of the successful candidate’s base salary. For a job like the developer position described above, the placement fee in question is $10,000. That’s $10,000 (or as close to $10,000 as you can get) in your pocket. You do not spend a dime chasing employers for their business or for their feedback.
Reflik is totally free. Everything we do for you will cost you nothing. It is all about pumping up your profit margin to almost 100%.
Ready to test Reflik out and see if it is the right solution for your recruiting agency? Click here to sign up today and begin working on the hundreds of jobs available on our platform!