Many recruitment leaders I work with want their recruitment CRM to generate fees, but often recruiters are all too happy to jump back into spreadsheets, LinkedIn, notebooks and “going by memory” rather than use their CRM system properly. This blog is a quick 3minute read to create some perspective and give you some ideas for a “CRMFirst” strategy.
The above results in a nightmare for recruitment leaders who are looking to grow their business, become “GDPR-proof” and become more profitable.
It also results in a problem I call “Hairdresser Syndrome” – a term I’ve used for many years to describe a recruitment business that needs to get a grip on its processes and data to see real growth and ROI.
Do You Have a Recruitment Firm, or an Office Full of Desks For Rent?
I have been with my hairdresser for 8 years. He knows my taste in magazines, some of my secrets and all of my roots. A few years ago he was based in a large salon in the city, where he rented a chair.
The rest of the salon staff barely knew I was there, and I didn’t really notice them either – zero interaction. Perhaps if I was lucky my hair would be washed by one of the juniors. I’d pay the girl at the till on the way out, but my hairdresser was my only real contact at the salon.
One day he very quietly commented that he was opening his own salon, and would I like to move with him? I bit his hand off – why wouldn’t I? I had no relationship with the salon. They kept no details on me, perhaps they didn’t even know I existed. Would they miss my business?
For me, he was the salon.
Are Your Recruiters Hairdressers?
Can you see any similarities between your recruitment business and my hair salon?
They have exclusive relationships with the clients. Are you simply the “girl” taking my money at the till?
Do they use stuff in your business, such as hair washers, tea makers, reception (IT, HR, Finance, Admin) that their fees contribute to, but that I am totally oblivious to?
Are your consultants simply logging data at the point of sale to get the cash in but the juicy stuff which is about me, what I like, how I buy is in his/her head?
If they left and took “clients” with them, would you know? And don’t forget you’ll only know what data they’ve taken and who’s migrated with them if they told you about these relationships in the first place.
Even if you had the data on the client, would it be enough for you to continue the relationship going forward?
Are your clients engaging with your business or the consultant? Are their loyalties to the brand or their perceived face of the brand, the consultant (the hairdresser)?
I’m still seeing “30-second recruiters” who enter a candidate in the CRM just to place them and board the invoice. Recruitment consultants are tempted to brush off GDPR as a flash in the pan, carry on as usual and keep billing how they’ve always billed. That may work for them in the short term, but they’re missing out on opportunities to be more effective and profitable whilst putting the business at risk.
CRMFirst and GDPR: Hairdresser Prevention for Recruitment Leaders
2018 was the year of GDPR, and 2019 needs to be about CRMFirst (getting your candidates, clients and consultants addicted to your systems. It needs to be about data hygiene, recruiters building effective, retained relationships and recruitment firms focusing on growth, not just legislation.
A CRMFirst (BullhornFirst / AdaptFirst) culture can create a valuable pool of great data that will put you ahead of your competition and create a hidden asset that your clients (and prospective clients!) want access to.
Your recruitment CRM should be a USP – a unique selling point. Your recruitment software can be an addiction for your recruiters, your clients, candidates, and investors. All of which does the one job you bought it for – to make you more money.
Swap the Salon Culture for CRMFirst Culture…
Instilling a culture of data quality is challenging, but highly rewarding. Define the strategy, instil this into your culture and reduce the risk of bad data impacting the recruitment business.
Get your recruitment consultants engaged with your system and train them on best practice so they understand why great recruitment process is profitable for them, as well as your business. Stop them from simply renting a desk.
Once they can see and feel the benefits of following your processes (improving performance, profit, and ROI for themselves as well as the business) then your CRM can become a business growth tool, rather than an expensive data dump and potential GDPR risk.
So, are you guilty of simply renting a chair to your consultants to allow them to grow a lovely portable client base, or do you do more to grow/protect your brand, relationships, and market share?
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Recruiter Productivity Series: Optimise Bullhorn Part 1 ~ Engage, Nurture, Place, and Re-Place
Recruiters! I know that recruitment has never been so competitive— even your own clients are competing with you to place candidates!We're launching a new series of recruiter productivity webinars focussed on optimising your use of Bullhorn and driving speedier sourcing, recruitment, leads, sales, and commission! Part 1 is focussed on managing candidates.Let's show you some tips to engage with candidates effortlessly. Let's build stronger relationships using Bullhorn’s nurturing features: communicate, optimise, protect, PLACE! (And repeat!)REGISTER NOWBullhorn MythsIn today’s fast-paced recruitment world, having a powerful ATS/CRM is essential. It saves time, improves efficiency, and drives a profitable desk. But often, we hear:I use Bullhorn when I get a minute.Bullhorn is just a database, not a business growth tool.We have Bullhorn, but we’re not seeing a return on investment.The data is a mess, so I need to advertise and use LinkedIn too.These statements couldn't be more wrong…Bullhorn:💓 Can be your recruitment Buddy if you let it!😱 Reduces admin workload.💪 Keeps you organised.🕒Helps you source, sell, and place quickly!…and so much more when used effectively!Register Now for Our "Candidate Engagement" Bullhorn WebinarRecruitment leaders! Don’t invest in Bullhorn only to underutilise it and then wonder why you’re not getting results.Recruiters! Don’t create unnecessary "busyness" with messy data, inefficient workflows, and poor adoption, leading to a lack of return on effort (RoE).What You’ll Learn in Our Upcoming Bullhorn Optimisation Webinars:📌 23 April 2025: Engage with candidates effortlessly. Build stronger relationships using Bullhorn’s nurturing features: communicate, optimise, protect, PLACE! (And re-place!) Register Now📌 Date TBC: Leverage Bullhorn to source and track qualified candidates faster with less effort.📌 Date TBC: Maximise lead generation and improve conversion rates with smart Bullhorn strategies.📌 Date TBC: Optimise recruitment workflows for maximum efficiency and profitability.Whether you're new to Bullhorn or looking to refine your ATS/CRM strategy, this webinar series will provide you with actionable tips and real-world insights to immediately benefit your recruitment team.By the end of our 4 Bullhorn Optimisation sessions, you’ll have the tools and knowledge to:⏳ Save time (and sanity) and be more productive.🤝 Engage more candidates effectively.💸 Place candidates faster and increase your sales and commission.Don’t miss out! Register now to secure your spot in this free, must-attend event.We look forward to showing you how Bullhorn ATS/CRM can elevate your recruitment ROI (return on investment) and ROE (return on effort) and drive business growth!REGISTER NOWRecruitment and Bullhorn TrainingWe deliver the best live Bullhorn ROI webinar training, and you'll find other tips and tricks in Recruitment HIIT, our online recruitment training platform.Plus, through our Bullhorn Vision service we help generate serious ROI from your Bullhorn, data, and people.TRY HIIT FREE HERECONTACT US ABOUT BULLHORN ROI
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Protect Your Pipeline with this Antidote to Backdoor Placements
Backdoor placements are often an "invisible" pipeline killer. Yet they are also a great opportunity to recover lost revenue. Silver linings! Are you missing out on smashing target by not actively managing backdoor placements? 20 Years Ago, in a Land Far Away...In Lisa and my younger days (20 years ago), we created a report to track theoretical backdoors, and had a team calling candidates at the employer they'd recently had an interview with. If they answered, they were put through to the recruiter to begin recouping the lost fee.Surely time has moved on and there are more effective and tech-driven ways of doing this? Plus, surely recruiters are better at sales admin and relationship management now, so back doors are less common? I'm not so sure... If anything more data and tech has actually created a less robust process in many firms.Let’s explore why tracking backdoor placements is critical and how to implement best practices and technology for spotting and reducing them.The Financial Impact of Backdoor PlacementsWhen a candidate you’ve introduced to a client is hired without your knowledge or agreement on fees, you lose the fee. This often happens when terms of business aren’t adhered to, or when a client chooses to go behind your back. Consider this: one recruiter we’ve worked with reported uncovering at least one lost fee per consultant annually. For a team of 30 recruiters, that’s a staggering £150,000 in potential net revenue. In one instance, a single backdoor placement resulted in a recovered fee of £32,000. These numbers are too significant to ignore.Additionally, recruiters often spend resources sourcing candidates from external platforms instead of leveraging their databases. Tracking and addressing backdoor placements encourages better use of internal resources while ensuring you recapture fees rightfully owed to your business.Building Trust and Strengthening Your Recruitment ProcessClients: Actively managing backdoor placements helps you optimise your client relationships. Clients who circumvent your terms of business do not value your partnership. Using Bullhorn to flag these incidents creates transparency and helps you spend time on clients who value you.Candidates: Additionally, having a proactive backdoor placement management process complements your silver medalist strategy. Silver medalists are candidates who reached advanced stages of the recruitment process but were not placed. By regularly engaging these high-potential candidates through your tracking systems, you keep them warm for future opportunities while minimising your reliance on external sourcing.Best Practices for Managing Backdoor PlacementsTrack Every Interaction: Ensure your CRM system captures interview stages and outcomes, even for candidates rejected at early stages. Use detailed note types like “Rejected at Interview” or “Rejected at CV Send” to maintain a clear record.Standardise Your Terms: Attach your terms and conditions to every client communication. This ensures clients can’t dispute fees later and provides you with a reliable audit trail.Monitor Data Ownership: Many lost placements are tied to inactive users or former consultants. Assign ownership of these candidates to managers to maintain visibility and accountability.Automate to Remove Human Error: Implement automation to consistently track candidate progress and flag potential backdoor placements. This minimises manual errors and improves data integrity.Automation - The Antidote to Backdoor PlacementsDuring a recent Bullhorn Automation User Group, I was asked about my top 3 ways to use automation. Backdoor placement management is one of those 3 ways. These 2 automations are a must of you are set on prevention and pipeline maximisation:Interview Confirmation automation: If you already use these automations, add a notification step, x months after the interview date. Choose a timeframe which suits your sector the best.Check Past Interviews (Backdoor): If you don't use Interview Confirmation automation, create a stand alone automation that tracks the interview date and does not have placement. Add a wait step x months later to send a notification to your recruiter to check-in with the candidate and check they don't have a new job. You could even do what Lisa and I set up in a previous life and call the employer and ask to speak to the candidate. If they answer... bingo!Process and Tech Is KeyUse tech to prevent them.Use tech to spot them.The bottom line is that backdoor placements aren’t just about recovering lost revenue; they’re an opportunity to refine your recruitment strategy, strengthen client and candidate relationships, and ensure your systems are robust enough to thrive in a competitive market. Take control, and turn these challenges into wins for your recruitment / staffing agency.And if you need help on your processes, your data, and your Bullhorn adoption / ROI - call us - we can help.Automation and Bullhorn1stWe are Automation Buddies and Bullhorn Experts set on helping ambitious recruitment businesses who want to increase speed and sales.Automation: We coach to inspire, and build your automations so you can recruit and sell!Bullhorn: We optimise, train, and improve RoI from your key recruitment system.READ ABOUT OUR AUTOMATION BUDDY SERVICERead about our Bullhorn 1st Service
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