Guide to Improving Recruitment Client Retention
Published: 10/07/2022
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This article is intended for recruitment agencies seeking ways to enhance client retention. We are living in an era where retaining recruitment clients is achievable only through a blend of personal interaction and automation technology - and this is the topic we will be exploring.
It is no secret that retaining existing clients is cheaper than attracting new ones. While some may argue that if a recruitment firm maintains a client for too long, it indicates they are not performing well, we digress. No agency is the same, and therefore the understanding of recruitment client retention varies. For some, it signifies the continuous supply of candidates over the years; for others, it represents multiple one-off collaborations throughout the years. Ultimately, all types of recruiters agree that it is much easier to work with a company they are familiar with than to start afresh with a new one.
No matter what type of recruitment firm you are, there’s one universal client retention formula for the industry. Having worked with a wide range of agencies over the years, we have realised what it is - and we are eager to share it with you. So, if you’re struggling with recruitment client retention, you should continue reading.
While client retention is crucial in every industry, it can be a particularly sensitive topic in recruitment, where competition is continually increasing. With numerous options available in the market, clients wield more power than ever. Simply put, the slightest miscommunication or a subpar delivery can prompt a client to take their business directly to your biggest competitor. Naturally, this implies that recruitment firms should go out of their way to enhance their services and treatment of clients; however, this is not something we often observe. It’s important to note that the issue here isn’t malice, but rather that most firms are uncertain about where to begin.
The answer is simple: start with the client. In this article, we will guide you through creating a more personalised and intimate experience for your clientele, understanding their needs more effectively and adding value beyond the ordinary. All this without compromising our firm’s productivity or authenticity. Are we piquing your interest? If so, continue reading…
Establishing a relationship in which both parties collaborate rather than merely providing and receiving services leads to long-term partnerships that benefit both sides. The recruitment agency is able to retain a client, while the client benefits from services specifically tailored to their needs. This fosters clearer and improved communication throughout the duration of the partnership. The key to retaining your recruitment clients lies in demonstrating that you are genuinely working with them towards their success.
The most common mistake observed in recruitment is that client communication is only planned up to the point of closing the sale. Let’s face it - no one likes to feel like they’re a cog in a revenue-generating machine. Therefore, it’s important to continue the communication even after the client becomes a client. Depending on the size of your agency, you should always aim to get to know your clients personally and show them that you care more than just collecting their money. There’s no need to go out of your way to host extravagant dinner parties - small gestures, like birthday or holiday cards, make a significant impact.
Another common mistake in client retention for recruitment firms is failing to be proactive in meeting clients' needs. While most clients have a specific problem they wish to solve, to establish yourself as a trusted advisor and a long-term partner, you must go the extra mile to continue adding value. You should always be prepared to tackle any potential issues that may arise in a client account; in fact, you ought to ensure these problems are addressed before they even become an issue. When clients feel they are receiving more than they originally requested and that their needs are continuously attended to, they are more likely to remain with you.
There is nothing more damaging to a professional relationship than disappointment. As a result, dissatisfied clients are more likely to walk away from you, severely impacting your retention rates. The best way to prevent this from happening is to set clear expectations from the outset. To do this, you first need to understand what the client wants, distinguishing must-haves from nice-to-haves. Of course, it’s not solely up to you, as the client knows their business best. This is where it’s crucial to communicate and explain your perspective as a specialist opinion that they can either accept or disregard.
One approach we suggest is asking a client to outline their expectations on the list, alongside the goals they wish to achieve. In other words, rather than telling the client what they need, your stance should focus on listening to their requirements and then assessing whether it's something you can provide. It is crucial to gauge your capacities and not overpromise; the only way to ensure your partnership works out is to deliver exactly what you promised, on time or even earlier. And ideally, with a little extra on top.
Many still believe that personalisation is impossible when processes are automated. We hasten to assure you that this is untrue. In fact, it is quite the opposite. Often, it is automation that enables you to understand the needs of your clients better, leading to more accurate communication the moment a live person steps in. This applies to both internal and client-related automation. So, allow us to elaborate…
Your clients loathe mundane, repetitive tasks just as much as you do. Consequently, rather than searching for candidates themselves, they are turning to you for assistance. While you won’t be directly automating any processes in the client’s business, you can and should automate some tasks you handle for them. These include job posting, infrastructure management, candidate screening, and many others.
Not only will this help you work more quickly and efficiently, subsequently delivering better and more accurate results, but it will also free up a significant amount of time for you and your staff. This time can then be repurposed into building further unique relationships with clients. A combination of all these factors will provide a massive boost to your client retention; all that’s needed is a selection of good automation tools.
Client-oriented processes aren’t the only ones you should automate. In fact, there are numerous internal processes that require attention as well. For instance, new employee onboarding. The quicker you bring your new hires up to speed, the sooner they’ll be able to start contributing to your agency’s growth. An increased workforce typically leads to scalability (client attraction) and a more even distribution of work (client retention).
Other areas to automate could include invoicing. Rather than depending on your accountancy department to spend hours on client invoicing, you could provide them with a tool that accomplishes it within minutes. Additionally, particularly with number-sensitive processes like billing, automation will minimise the possibility of human error. This means you won’t jeopardise client retention by inadvertently charging them the wrong amount, nor will you lose money if the mistake favours the client. In other words, automation is as advantageous for completing client tasks as it is for enhancing your business operations.
Everything good starts with the right mindset. If you want to improve your client retention not merely for the sake of generating more revenue but for serving them better, you’re not on the right path. What we’ve been trying to communicate in this article so far is that a recruitment firm truly excels and scales by understanding and prioritising its clients. Simply put, the more success you bring to your clients, the more eager they will be to continue working with you—making you just as successful.
It may sound corny, but you need to become customer-centred to maintain high levels of client retention. This doesn’t mean following the mantra of the ‘customer is always right,’ but rather adopting a level of flexibility in which every prospect (not even a client!) feels that they are personally cared for. While it is certainly challenging, the results will be worth it.
Furthermore, with a wide array of automation solutions available to you, this goal is entirely attainable. Taking over simple tasks such as employee shift scheduling or timesheet management using intuitive tools may seem like a minor gesture, but it will significantly benefit the client. Instead of concentrating on attracting as many new clients as possible, consider investing in enhancing your level of service for your existing clients by prioritising their needs. This will allow you to grow and thrive together.
While client retention is more financially beneficial to recruitment agencies than acquiring new clients, this should not be the sole reason for a company's focus on it. Collaborating with the same client over an extended period fosters mutual trust, which in turn leads to improved collaboration—this is the fundamental reason for wanting to enhance recruitment client retention.
There is no secret as such. All you need to do is add value to the services you provide by being human and showing genuine care. In the modern age, we are fortunate to have software that supports this approach, leaving you with no excuses. So, what are you waiting for? Your recruitment firm is as successful as you enable your clients to be.
Are you prepared to bring them success? We are.