It’s all about the money, not the results.
So this morning on LinkedIn I came across what can only be described as the potential usurper to those denizens of the recruitment industry, The Big Biller Summits. The CEO of Morgan Vantage Rec2Rec, Scott Morgan.
Scott Morgan claims to be able to turn an average perms recruiter into a £1 Million per annum revenue machine. Simply by following his advice and adopting the Perfect Planning Prevents Piss Poor Performance mantra. I challenged his numbers, I challenged his claims as well. What did Scott do? He blocked me from his discussion. Which is fine, if not a little childish.
Thankfully, I copied his article. Have a read and let me know what you think? One thing that absolutely stands out from all the horseshit however, is that nowhere in his articles does he explain or even advocate exceptional quality of service, due care and diligence, commitment to the process. He doesn’t even advocate working on a retained basis. Scott knows little if anything about the recruitment industry and it’s mechanics. What do you think?
How to turn yourself from an average biller to a £1m biller
In case you are unfamiliar with PPPPPP, it stands for Perfect Planning Prevents P”ss Poor Performance. The author of this paper has billed over £1m three times in a 15 year career in recruitment and there really isn’t that much stopping you doing the same. In fact the only thing stopping you, is you.
For any successful recruiter the key to success starts right here. You have to know exactly what you are doing on a day to day basis. You have to plan your time, candidates, marketing in fine detail otherwise you eventually sit there every day just staring at a screen wondering who to call next or just trying to look busy or hoping someone starts a conversation so that you can waste half an hour.
If this type of life makes you happy then I suggest you stop reading now. If you truly want to be the best then hand in there.
OK, there are many aspects of planning that need to be addressed and we will do that in this part of our series of white papers aimed at getting you on the fast track to stardom.
The main key areas of planning are highlighted below and we will address each in turn.
Plan for the Future
All too often nowadays recruiters fall into the trap of spending the majority of their lives staring at some kind of recruitment database software, why?. Does it magically get you interviews, do it magically get you clients, does it magically get you recognised with clients and candidates as the “go to” recruiter in your industry, will it magically bill you £1m. The answer is always NO.
I found a magic formula that worked for me. I kept a desk planner in a diary which had all the key things I had to do that day. If I couldn’t achieve certain things I manually put it into the next day until it was achieved. The logic is simple but this is very powerful in taking the first steps to being a £1m biller.
My Planner was set out like below and in the next column I had the exact times I had to call people.
Arrange First Interviews
Arrange Second Interviews
Follow First Interviews
Follow Second Interviews
Offers to Follow Through
Now you may be sat there thinking, yeah but my recruitment software does all that for me so why should I bother. The rationale is very simple. Your day should be planned out so that you have NO spare time. What you don’t achieve today falls over to tomorrow and you have to manually write your entire day out at the end of the day. Trust me, you soon clear your planner every day and all your follow up calls are booked in well in advance. Once you start this process your time becomes much more effective and every call has an outcome. Your diary then starts to fill up very quickly so when you arrive in the morning, you are ready to go. If anyone asks you what your pipeline looks like you can instantly respond with BANG, BANG, BANG. Only 5% of recruiters can do that and I want to make you one of those.
I used the “absolute mind set” that I needed to make £300,000 and to do that I needed to bill £1m. In order to bill £1m I worked on the principal that I needed to bill around £480 an hour, around £3,800 a day or just over £19,000 a week. Every call I made had to get me to that goal and more importantly every call I made had to have a reason ( I had to see and smell money in there). Every day I planned to make around 100 calls and at least 80 of those had already been planned. I view things like this, I had to make every single call worth £38 or I just wouldn’t bother.
In the next series we will focus on how to achieve success but for now we need to concentrate on the basics. Doing the basics right is the whole key to a successful recruitment career and a step closer to joining the elite £1m billing club.
All too often recruiters set up interviews with candidates and work on the principal that the candidate will do their research. Getting this right can instantly double your revenue. Once you have arranged the interview with the candidate give them a period of time to research the company and arrange a time to brief them on the opportunity.
We all spend too much time arranging interviews but this is one of the most important areas to focus on and we will deal with this in more depth later in the series. Once you call the candidate to go through the interview preparation this is the time that you need to test commitment, have they done their research, if not why not. Don’t be afraid to pull the interview at this stage or threaten to at least. Reitterate that if you cant be bothered to do the research then is this a waste of my clients time, gauge the response and move forward. This establishes your candidate control and makes sure that they are prepared. Brief them to the ‘enth degree. I used to spend at least 30 minutes to 1 hour briefing committed candidates. The more ammunition you give them the more prepared they will be. Again we will deal with this at length in a full “candidate preparation” series.
Again this is often overlooked by recruiters but it also paramount that client’s are prepared properly. Recruiters often assume that clients are experts in hiring people, the reality is 90% are not. We will detail this further in the series but a prepared client makes for a great interview. Are they structured or do they just make it up as they go. Clients need to know what they have to do in order to secure the right talent. After all, you are bringing them something THEY need so they need to work with you, not against you.
We all have company KPI’s in place but you need to set your own in order to achieve that magical £1m billing mark. In order to get to £1m you need to break down EXACTLY what you need to do.
So work this in reverse:
£1m = 100 x £10,000 average fees
Current Ratio of offers to placement is 1 in 3 so you need 300 offers.
Roughly 6 offers a week
Your current ratio of final interviews to offers is 1 in 3 again so you need 900 final interviews
Roughly 18 final interviews a week
Your current ratio of first interviews to final interviews is 1 in 5 so again you need 4,500 first interviews
Roughly that’s 90 interviews a week
To generate 90 interview a week you probably need 200 candidates a week
The reason I highlight this is simple, it is impossible to bill £1m a week how you currently operate. Quality over quantity, preparation over scatter gun. If you prepare properly the ratios will look something like this
£1m = 67 x £15,000 average fees
Current Ratio of offers to placement is 1 in 2 so you need 134 offers.
Roughly 2.5 offers a week
Your current ratio of final interviews to offers is 1 in 2 again so you need 268 final interviews
Roughly 5 final interviews a week
Your current ratio of first interviews to final interviews is 1 in 3 so again you need 804 first interviews
Roughly that’s 15 interviews a week
To generate 15 interview a week you probably need 30 candidates a week
NOW THAT IS ACHIEVABLE!!
Identify your weaknesses and deal with them, identify where you “cut” corners and stop. Know your market, learn your market, go the extra mile for clients, store every little detail about your market as it can pay dividends in the future. You are now coming one step closer to the magical £1m mark.
Now by simply preparing better your KPI ratios come down, your clients and candidates are better prepared and you chance of successful interviews increases dramatically. Quality over Quantity – a committed candidate is far better to work with than a superstar who is dipping their toe in the water, Work Smart and Hard – Get your candidates to list all of their competitors (Top 10, 20, 30 etc) and approach them, get your candidates to identify exactly WHY these companies will be interested in them. Only work with EXCLUSIVE candidates, One exclusive decent candidate is better than 20 non committed or multi agency candidates, your reputation with clients will suffer, you have to work 10 times harder to place one person, WHY??. Remember, to achieve your £1m billings you need to make every one of your 100 phone calls a £38 call and that candidate who has already registered with 8 other agencies is not a £38 call.
In short you need to improve your KPI ratios in order to improve your billings. This series has been developed to kelp you do that and we will look “in depth” at simple measures you can take in order to achieve your goals and take a step closer to being a £1m biller.
Plan for the Future
Typically recruiters thing no further than the end of the week. This is fine if all you want to achieve is say 10 interviews (doesn’t matter about quality or suitability). Planning for the future is key to taking the next step in your career and joining the elite, the £1m billers. Take a few minutes out and look at your market, try to assess the “top 10” companies in your market that people WANT to work for, the companies that excite YOU. Plan your strategy at gaining entry into those companies, keep banging on their door time and again and eventually a door ill open, once you are in you have something truly special, a company that YOU believe in, a company that YOU are proud to sell to your candidates and a company YOU believe to be the very best. Enthusiasm is infectious and this will rub off on your candidates perception of the client as well.
To become an Elite recruiter you have to know your market, what companies have won what contract, who is growing, who has lost a major deal, who is installing the latest version of xxx technology, how the organisations rank in the pay leagues as these are your tools to separate you from the rest. Knowledge is power and eventually if you plan properly, store your knowledge then clients will want to feed off that knowledge.
Published by Morgan Vantage Ltd
Recruitment Management Consultancy
Recruitment Company RPO
Scott Morgan CEO