How to build a great recruitment company: step-by-step advice

Starting and growing your own recruitment company is not an easy task – you need to find the right people, clients, niche, and strategy to stand out from the competition. This blog explores how to turn a good company into a great one.

One source of inspiration and guidance for building a successful business is the book ‘Good to great’ by Jim Collins. The author has drawn on years of research to distil how some companies became highly successful, while others failed. It reveals the common traits and practices of these great companies, and how they can be applied to any organisation.

Here follows some of the book’s key insights to help you build a great recruitment company.

Confront the brutal facts

One of the principles of building a great company is to confront the brutal facts of your reality and act on them. This means being honest and realistic about your current situation, your strengths and weaknesses, opportunities and threats, and your performance and results. You must face the facts, even if they are unpleasant or painful, and use them as a basis for making decisions and taking action.

For example, a newly formed recruitment company may need to face the reality of its market share, client satisfaction, employee turnover, cash flow, or its competitive edge. It may need to acknowledge that it is losing clients to rivals, that it is not delivering on its promises, that it is struggling to retain talent, that it is running out of money, or that it is falling behind in innovation. These are the brutal facts that can make or break a recruitment company.

By addressing the facts, you can also create a sense of urgency and momentum for change. You may discover new opportunities and possibilities that you may have overlooked or underestimated. It might present opportunities to build trust and credibility with your clients, employees, and stakeholders. Every negative can be turned into a positive.

Culture of discipline

Another of these “Good to great” principles are to create a culture of discipline that executes your strategy with consistency and excellence. This means establishing clear goals, standards, processes, and values that guide your actions and decisions. Empower your people to take responsibility and use their initiative to follow the rules and procedures, and to deliver results and quality.

For example, a newly formed recruitment company may need to create a culture of discipline in its sales, marketing, operations, and finance functions. It may need to define its target market, value proposition, and pricing strategy. It may need to implement budgeting, accounting, reporting, and auditing systems and align its incentives, recognition, training, and development programmes with its goals and values.

By creating a culture of discipline, you can ensure that your recruitment company operates efficiently and effectively. This will foster a sense of ownership and accountability among your people, enhancing your reputation and credibility with clients and candidates.

Let technology take the strain

Another principle of building a great company is to use technology as an accelerator of your growth, not a driver of it. This means using tech to enhance and support your core purpose and competitive advantage, not to create or replace them. Aim to be selective and strategic in choosing and adopting the technology that fits your needs and goals, and not follow the latest trends or fads. For example, it may be worth testing out marketing, sales, CRMs or finance tools that could benefit your company and help it grow.

Be creative and innovative in applying and leveraging technology, but don’t become dependent on it.

By using technology accelerators, you can improve your recruitment company’s efficiency, expand your reach, scale your operations, and increase your revenue. Technology also may help you to differentiate yourself from your competitors and add value to your clients and candidates. However, remember that technology is only a tool to help you achieve your vision and purpose. It is not a substitute or a shortcut for your strategy and execution. 

The flywheel

The flywheel concept is a powerful way to understand how to build a great recruitment company. It is based on the idea that there is no single action or event that can make your company great, but rather a series of actions and decisions that build upon each other and create a cumulative effect. At first, the flywheel is extremely hard to turn, but as you persevere and put effort into growing your company, turning the flywheel becomes easier and easier. It requires consistency and perseverance, particularly in the face of difficulties or setbacks.

The flywheel concept can be applied to any recruitment company, regardless of size, niche, or stage of development. The key is to identify the key drivers of your success and align them in a logical and coherent sequence.

By applying these principles and practices, you can transform your recruitment company from good to great and achieve lasting results.

For more invaluable tips and advice on the subject, we highly recommend reading the bestselling Good to Great by Jim Collins.