The Great Recession, which resulted from the credit crunch, holds many lessons. For businesses, a major one is that loans for capital investment may expose companies to significant risk, especially when order books get thin because of a systemic finance industry and economic problems which fuel uncertainty.
Learning from the lesson, perhaps the best policy is to avoid servicing debt and stick to using cash surpluses for the purposes of investment. For the highly entrepreneurial recruitment sector, this is a nice idea, but it may be impractical; the cash may not be there when you need the capital injection. Consequently, perhaps the best a firm can do is to maximise profitability and attempt to minimise the need for loans, no matter how cheap they may be.
Recruitment as an early indicator of economic fortune
Recruitment is something of an early warning system of economic fortune. Performance data from the industry is a leading indicator of prosperous times. The UK made one of the strongest recoveries from the Great Recession.
However, recent anecdotal evidence from some in the sector seems to suggest the economy is slowing again. For many the Brexit vote is a point of focus. The voters have lobbed a hand grenade labelled ‘uncertainty’ into the sphere of business and politics which seems to be having highly unpredictable effects.
Smart ideas: Prepare your recruitment business for riding out uncertainty
The new guide from Serviced Cloud: ‘7 smart ideas to streamline your recruitment agency’ helps owners and managers of recruitment firms to eliminate inefficiencies that pull down on the bottom line.
The guide contains ideas and suggestions for:
- Improving agency process and sharpening practice
- Marketing initiatives that lead clients and candidates to you
- Exploiting opportunities to leverage business technology
Quite simply, the guide helps owners and managers of recruitment firms understand how to do a better job of preparing agencies to ride out uncertainty.
You can download the free guide here: https://ww1.servicedcloud.com/7-smart-ideas-to-streamline-your-recruitment-agency