The news that the UK economy is predicted to shrink by 2.8% over the next 15 months has sent alarm bells ringing across every sector of the recruitment industry, but this doesnít necessarily mean doom and gloom for every recruitment desk.
ëOf course, it is a worrying time for all concerned, but the agencies with most to fear from the recession are those with the highest proportion of administrative staff to fee generators,í says Voyager Sales Director, Paul Thompson.
ëRegardless of the economic climate, business has always been a case of survival of the fittest. You donít have to look over your shoulder at the approaching storm and worry whether you have the ability to survive. You simply have to make sure that you are better equipped to perform than your nearest competitors.
ëA recruitment agency should be as lean as possible. If you are carrying even one administrative staff member who doesnít generate revenue for the business, then you are approximately 20,000 in the red for the financial year before you even think about making a profit.
Of course, we all have to adapt our business plan for the economic contraction, but it always boils down to the same stark choice. Either make more money or spend less. With a flexible, automated system such as Voyagerís new VDQ! Software, SME Recruiters can drastically reduce their overheads to ensure that when their less streamlined competitors fail, they are well positioned to take over their current client base.
Donít get worried by the recession, says Paul Thompson, Voyager Software. ëJust get smart.í
ëThe news that the UK economy is predicted to shrink by 2.8% over the next 15 months has sent alarm bells ringing across every sector of the recruitment industry
