Are Hairdressers Putting Your Recruitment Business at Risk?

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 3-minute 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”, use AI, Analytics, and Automation to be more efficient and productive, and of course become more profitable.

It above 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.

(Note: I originally wrote this blog in 2018. Many years have passed and so much has happened to recruitment, but I've barely needed to update this content...)

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 consultants and my hair dresser?

• 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. 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 (Bullhorn1st): Hairdresser Prevention for Recruitment Leaders

This year needs to be about CRMFirst ~ Bullhorn1st ~ 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 effectiveness and growth.

A CRMFirst (BullhornFirst) 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 your life easier and 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.

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