How Can Small Recruitment Firms Survive the Recession? Seeking Ideas to Save My Team

Dear all,

We have had a lot of articles and comments on recession's effect on employees. But what about employers? And I do not mean the big corporations who are taken care of by governments and bodies. What about the small-timers dependent on these corporations?

As a case: I run a recruitment firm with at least 25 people dependent on me for their survival. It's a vicious circle. The flow of work has drastically come down and wherever we have done business, the payments are not forthcoming. It has become a difficult task to maintain the team or pay them. As a business decision, I may have to fire most of them, and this is very disheartening as they are really good. Cutting salaries, etc., doesn't work as they too are in need of money.

I have thought of many options but right now need some fast answers, in the form of business leads.

I invite suggestions from all. What are the other industry domains open to recruitment and which companies are actively doing so?

Maybe one of your ideas may help in retaining a team I have grown to love a lot. So do respond!

Warm regards, Sagar Prince 09886790878 [IMG]https://www.citehr.com/misc.php?do=email_dev&email=c2FnYXJwcmluY2VAZ21haW wuY29t[/IMG]

Hi,

It's very true and I agree with the global scenario. Apart from the regular services of assisting companies in their recruitment process, the following additions may be carried out. It is a matter of survival, and hence everyone must be communicated to do their best to expand the scope of services. Efforts will be needed to reach and attract clients. I believe the following may be useful in the present scenario.

1. Add-on services to small business enterprises:
a. Talk with the candidate (on behalf of the client): Under this service, a consultant talks with the candidate suggested by the client and provides updates to the client. The consultant charges a lump sum amount for the same. These services mainly prevail in small IT development companies where candidates may not be interested, but their employers find them valuable for the money.
b. Legal Services: Installation and maintenance of legal setup. Installation charges may be a one-time cost, and maintenance charges may range from Rs 50.00 to Rs 75.00 per employee per month.
c. Employee grievance handling services.
d. Business Development and providing Technical Know-How to SMEs. Assistance in international certifications like ISO and Quality Management Systems.
e. Explore new avenues of business, go, search, and evaluate the potential services that can be provided. Even in the field of management education where many institutions lack infrastructure, teaching aids, and faculty, we can organize presentations/seminars. Of course, this may give us publicity as well as revenue.
f. Lastly, of course, there could be possible price cuts in services and reductions in manpower.

Thank you.

Hi Sagar,

I am agreed with the global scenario. We have to expend the blend of services as per the below options:
1. Call a candidate: Usually popular in the small companies, where the candidates are not much interested but the employers are interested in the candidate. Employer ask to the consultant to proceed the matter on their behalf. A lump sum amount can be charged by the consultant.
2. Expand recruitment services: offer legal services and their maintenance on monthly basis. Most popular is the payroll services.
3. Conduct seminars and workshops in the management institutions on chargeable basis.
4. Provide solutions to the small medium business enterprises problems.
5. Market Surveys and analysis.
6. Engage and instruct the manpower to do the above for the survival.
7. If situation doesn't improves; go for the cut in the manpower and price cut in the value of services offered.
8. Deal with the good clients.
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Thanks for all the responses...

But what best can you suggest me... I had started a recruitment firm 1.5 years back. At that time, there was no sign of the recession. Now, due to this, I have closed down the company. I am very strong in recruitment, and my other two partners are good at sales. They both found jobs, but I have not. I am making many cold calls to companies, but there is no response. I have tried through references as well but am losing hope. I have also lost my saved money as I invested in this company.

I am losing hope. Please guide me on what is the best I can do?

Thanks & Regards,
Lost Hopes

The best and quickest, in other words, fastest solution is to use the expertise of your staff. For example, you can diversify by providing account audit services, business restructuring services, and some consulting on a project basis.

This will work; after all, this is not rocket science. It only requires graduates with some experience, and your staff can handle these jobs, yielding revenue in difficult times.

Regards,
Badlu

Hi Searching4hiddenanswers! Could you please tell me where you are based? I mean, in which city in India. If you are in Mumbai...

Diversify.....

The question asked by you should have come across your mind probably a year ago. Any business model should never be focused on only one revenue stream. There is no quick-fix solution to your problem as of now. However, you ought to plan and diversify your business now. Being in recruitment consultancy, the first step would be to diversify the domain of your clientele. Next are the steps probably you should evaluate depending on their feasibility with respect to your goals and ambitions.

As for your team members, it's sad, but a crude fact. They will have to accept it and move ahead....

Regards, Arudreya Thapliyal [Login to view]

Yes, good solutions are being prescribed by our friends in this market scenario. We really need to understand that the available opportunities need to be picked up as appropriate.

As a recruitment firm, you will be allocating specific accounts to each of your team members for resourcing activities. Why not create a differentiator by deputing your resource at the client's office (the client could provide the infra support)? Your resource could also help the client with administration or HR operations. Your client can save on one resource, pay for your resource instead.

Removal of a resource should not be resorted to as much as possible. You could put them onto marketing, market intelligence and survey, data mining, campus presentations, career counseling for students, test administration for educational institutions and training institutes, training for students, etc. Consider the same as an investment for the next financial year.

Hi All,

I am looking for a paper or analysis on the recruitment costs (whether they have come down or remained the same) in the IT/ITES sector considering the global economic recession. Can you please help me with this? If you have any papers, please post them to this site or email them to [Login to view].

Thanks,

Hi,

We are also facing the same problem as you. As we have a global issue, we need to find a way to solve it. We provided unpaid leave to our employees and informed them that we would contact them once we have work available. I felt guilty about sending people home. Despite not having any personal financial difficulties as I do not rely on this income to support my family, I made efforts to secure a telecalling assignment. When I reached out to my staff, none of them were interested in this work. Only two employees returned, and we are now working on a new project.

This situation indicates that they simply do not care. It is crucial to appreciate and support employees who cooperate with us during challenging times and ensure that we can offer them work to sustain their livelihood.

Regards,

Asima