Why so many recruitment managers got fired in Covid.

Plenty of Agency recruitment managers were fired as soon as the pandemic hit.

That was shocking at an individual level, but no surprise, because in every downturn companies unload expensive middle managers in droves. I have seen it countless times.

Even in good times, many, many recruitment companies decimate their profit level because of this one thing.

Ineffective billing managers, or too many managers who do not sell at all

I have written extensively on this disaster. And it hurt so many companies over the past five months, as revenues fell and costs stayed high.

The focus now is to ensure you build a different style of recruitment company as we recover from CV.

Demand will be tentative. Setbacks are likely. Profits will be tenuous.

You cannot afford a ‘lazy’ cost on your P&L, which is what ineffective leadership is.

In fact, now is the time to plan out careers for your best people. Is recruiting and placing people where you get your jollies? Or is it, in fact, helping other people to billing success while you still remain front and centre when it comes to sales

Here, a real-life case study which proves that a skilled Billing Manager, who can increase recruiter GP production by 15 %, can drive an increase in corporate profits by 50%.

What’s not to love about that? (2.5 minutes)

• This is a real-life case study. An effective Billing Manager can increase Operating Profit by 50%
• A 10-person recruitment company with an annual Gross Profit of $3,000,000
• Making Operating Profit of $750,000 pa
• Effective Billing Manager can increase GP per recruiter by 15%
• That is an overall increase of GP of $450,000
• Say $100,000 of the incremental increase goes to bonuses and commissions.
• The rest, $350,000, goes to the bottom line!
• That is $750,000 plus $350,000 equals $1, 100,000
• That is a 50% increase in Operating Profit – all because of increased productivity generated by a great Billing Manager.

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