April 24, 2014
Why Do I Have A New Recruiter Every Eight Months?
Good question.
This is an IT Recruitment Agency
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This Agency is set up under the Account Manager Model:
Meet Kyle, Kelly and Kofi:
Kyle works tirelessly cold calling up to 70 people a week trying to generate new business which he will pass to Kelly to manage. Kofi Recruits for the jobs that come from Kelly’s clients. They are a tight knit unit. There isn’t much a good Account Manager and Recruiter, when paired to each other’s strengths, can’t achieve.
Kelly’s clients love her and keep coming back. She knows how to get the information from them that Kyle needs to make a good match and Kyle knows where to find the talent and how to quickly narrow down a large pool into the few that will be presented. Kyle and Kelly generate a steady stream of revenue.
But while the Agency has a steady stream of revenue coming from them, they aren’t seeing enough growth. They want to take the company to the next level. They opt to implement the 360 Model:
In this model each member of the team is a 360 Agent and is given a specific “vertical” under which they will build their business.
A 360 Agent is someone who does both Account Management and Recruitment. They own the entire process from developing the business to finding the talent. They’re that good.
The idea is that, if the only thing Kofi recruits for are Developers he can sell himself to clients as an expert in that space. Any time a Developer job comes in, it will be owned by Kofi, who should also have the talent at hand. He interviews five new developers a week after all.
But uh oh, there’s a problem.
Kelly loves working with clients but wouldn’t know the first thing about where to find talent and Kofi, although loving to dig through the job boards has, no desire to make business development calls. They both quit. Poor Kyle, now redundant, goes with them.
That’s fine. Management thinks. We would have had to retrain them anyway.
So this is Joey.
Joey Recruiters on the Development desk. That means he Recruiters Java Developers, .Net Developers, PHP Developers, you name it. Whether it’s a permanent position or a contract, Joey will have the person you’re looking for.
Joey is so loved by so many clients that he’s swamped. So the Agency hires Janet
Janet is going to be taking over the contract business. and Joey is now going to manage the permanent business on the Development desk.
Joey and Janet get along great. They help each other out with tips on who’s available for each other’s jobs and they have no problem handing off the business based on who’s vertical it falls under. They’re a tight knit team.
One day Joey and Janet hear rumblings from management. With Joey and Janet averaging $20,000 per month in client revenue off their current targets, if we add four other people to the Development team, with the same targets, we’ll quadruple our revenue. We do this under every vertical and soon we’ll have:
Joey and Janet now work with Jorge, Jill, Jacob and Jackson.
Joey runs the Perm .Net Desk, Janet runs the Contract Java Desk, Jorge runs the Perm Java Desk, Jill runs the Contract .Net Desk, Jacob runs the PHP Desk and we’re still thinking about what we’re going to have Jackson run. Maybe we could split the Perm .Net Desk again somehow?
One day Joey thinks, Hey, although the company’s numbers are going up, the number of jobs I can own own on my desk is going down. I gave the last three I got in to Jill. If I can’t own the job, I can’t get 100% of the placement fee, which is making it hard for me to hit my numbers every month. This makes Joey sad.
So Joey quits and sets up shop across the street where he is wooed by better commission, better salary, better benefits and the chance to once again own all his own business.
Others follow.
By this time next year the entire team has turned over due to resignation or dismissal on grounds of inadequate performance. Management thinks: The clients don’t seem happy that they need to talk to a different agent for every job and turnover is at an all time high. What if we implemented a model where we separate Recruitment and Business Development?
They do.
Meet Sarah, Sam and Scott.
