INCREASE SALES & PROFITS IN YOUR STAFFING COMPANY
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2 Responsible Recruiting Good as Gold Training 1 INCREASE SALES & PROFITS IN YOUR STAFFING COMPANY
3 Responsible Recruiting Good as Gold Training 2 Candidates have changed. Clients have changed. The market has changed. As a Staffing Company owner, we are going to discuss what you must do to increase sales & profits. We will address: 1. Subtle changes that provide dramatic results 2. How to upgrade your clients and increase margins and profits 3. Why Revenue Modeling is critical to your success 4. How to overcome any and all objections 5. What it takes to put ninety minutes back in your day 1. SUBTLE CHANGES THAT PROVIDE DRAMATIC RESULTS Know your numbers, ratios and stats Determine what daily results you need to attain consistent production Determine Six Specific Revenue Generating Strategies Focus on the activities that generate revenue. List specific action items with completion dates. Share Expectations in Writing Every Staffing and Contract Firm conducts their business differently. It is important to set expectations up front to stand out. Develop an Outside In Approach See your services through the eyes of the people you serve Develop a Referral Process Determine how and when you will ask for referrals. Consider paying for referred business and employees (only if you fill an assignment or place the candidate). Set Specific Goals & Dreams Your goals should reflect all areas of your life. They should be written, posted and have target dates. Include action items to ensure attainment of goals set. Change the Five People you hang around with most! Review the five people you hang around with most and ask: 1. Are you the student or teacher? 2. Do you earn more or less than your friends? 3. Do you hang around with people more successful than you?
4 Responsible Recruiting Good as Gold Training 3 When you are attempting to make subtle changes it s important to realize: IF YOU THINK YOU CAN OR YOU THINK YOUR CAN T YOU RE RIGHT! 2. HOW TO UPGRADE YOUR CLIENTS AND INCREASE MARGINS AND PROFITS One of the most enjoyable things about the staffing profession is the fact that you can manage your own book of business! There are two primary ways to grow your billings Either sell more and fill more assignments or increase your margins. Both are important and should be exercised with a plan of action. There are Five Basic Ways to Increase Your Margins: Increase your bill rates by 2 or 3 cents each hour. Total the number of temps you have out in a year and do the math. Easy! Decrease your pay rates by 2 or 3 cents each hour. Total the number of temps you have out in a year and do the math. Increase the number of non-contract and non-payroll assignments. Calculate the percentage of contract and payroll fills to those without payroll guidelines. Increase the number of nonregulated fills by 5% each quarter and watch your margins increase! Negotiate an increase for bill rates on temp to hires. Leverage a 70% bill rate for example on a temp to hire where you have flat or reduced conversion fees (especially on accounts where your agreement does not include a conversion fee). Set a higher markup for shorter term assignments and stick to it. The one day assignments at lower margins really add up and the cumulative effect will be lower margins. Make sure to have 70% or above for one day assignments and watch your overall margins increase! The name of the game with increasing margins is consistency and strategizing. Be mindful of each and every fill. At the end of the week, each fill contributes to the margin average. Rule Of Thumb Never offer free hours unless it is a last resort. Free hours where you pay the temp and do not bill the client will make your margins plummet.
5 Responsible Recruiting Good as Gold Training 4 Be a Marketing Shark Not a Goldfish Don t wait for business to be called in, go out and get the business with the margins you deserve. Determine specific targets and make a list of the high margin clients you want to represent Call past employers of your candidates Turn reference checks into marketing presentations Market candidates by skill selling Consider climbing the ladder and place the supervisors of who you are current placing 4. WHY REVENUE MODELING IS CRITICAL TO YOUR SUCCESS Your owner is in business to make a profit. Your desk is either a profit or loss center. You need to focus on margins and profits more than gross sales. When certain assignments or contracts are written, you know you are going to fill them. It s what you do. The job is within your niche, area of expertise and you ve successfully filled this type of assignment. There are also assignments and contracts that are written that are a waste of time and don t end up generating any revenue. Ask yourself the following questions: How many assignments/contracts did you write in the last six months? How many of them did you actually fill? How many of them should never have been written? How many hours were wasted working those assignments/contracts? Revenue Modeling Conduct Revenue Modeling to identify your best business by taking the following steps: Review where you have made fills in the past 18 months Write down the following: a. Industry b. Job Title c. Bill Rate/Pay Rate d. Location e. Margins f. Payment History Revenue Modeling enhances your ability to generate profits. You need to know the profile of your best business and aim 85% of efforts at that exact business.
6 Responsible Recruiting Good as Gold Training 5 Understand how it would benefit you to mirror that exact business. The fastest way to your next fill is to write an assignment that mirrors a recent fill. You have the back-up candidates in your database that could be a match and often the best candidate s surface after an assignment has been filled by you or another resource. Remember to back fill every candidate who is eliminated. You goal is to have 2-3 of your candidates reach the final interview process. We ve all heard the saying, Money makes the world go around and that statement is accurate. Good health and money have the greatest impact on your life. Money provides you with choices. When you are having a great month you love this profession. When you are having a flat month you definitely don t love anything If you ever find yourself frustrated, complete the following steps to re-energize your enthusiasm and passion. Step One: Focus on the exact amount of money you desire Step Two: Realize what you are willing to give in return Step Three: Establish a definite date when you intend to possess the money you desire Step Four: Create a plan for carrying out the actions needed Step Five: Write positive affirmations and read them twice daily Identifying your Best Business is an important step in you achieving the financial goals you have set for yourself. There are no limits in our profession and I ve never met an owner who would say, STOP, no more fills we have enough business this month! Focus on your Best Business and you will enjoy an increased level of success! 4. HOW TO OVERCOME ANY AND ALL OBJECTIONS As a sales person, part of your job is to receive and overcome objections. In fact, your level of success is greatly impacted by how effectively you overcome objections. Are their certain objections that cause you to retreat? Are you making marketing presentations to send out your marketing materials or write assignments? Do you make recruiting calls to your application form or to book interviews? There are four types of objections: Price, Postponement, Personal and Service. Learning how to overcome objections and viewing them as buying signs is critical to your success.
7 Responsible Recruiting Good as Gold Training 6 I speak to many corporate audiences and they have told me that the same five objections get 95% of staffing professionals off the phone. In fact, most of them only give one objection and know the recruiter will hang up. Think about that for a moment, one objection gets most of you off the phone. That just proves you are making customer service calls and not sales calls. On a sales call you would overcome at least two to three objections. The three client objections that seem to stop recruiters include: We don t use staffing firms Our company is cutting back, not hiring Our approved vendors fill all our positions Now you have a choice to make: Choice Number One: Hang up and call the next prospect on your list (not too profitable!) Choice Number Two: Overcome this objection (offering you a chance for success). Stressing the WIIFT and the benefits they will enjoy Role Play - Each time you are stopped by an objection, write it down and role play possible ways to overcome the objection with your owner, manager or peers. You don t want the same objection to continue to prevent you from attaining the level of success you deserve. If an objection stops your progress the first time, it is a learning experience. If it continues to stop you, it s just not smart, and you need to learn how to effectively overcome the objection! Objection Jar - Everyone in your office should write down objections that they can t overcome and put them in a jar. Once a month, everyone should select an objection and overcome it during a training session. If they can t come up with an answer, they are out and the next person has a chance to overcome the same objection. The last one standing wins! Practice Makes Perfect - Overcoming objections is no different than any other skill practice makes perfect! Write down notes when you hear your co-workers providing effective answers. This is a skill that needs to be fine-tuned and practiced throughout your entire career. Each time you hear a new objection, share it with your co-workers and role play effective answers. If you ve heard this objection, your co-workers will eventually hear the same objection and now will be prepared to overcome them. We Don t Use Staffing Firms Clients have learned that this objection is a very effective way to screen out most recruiters. What positions are the most challenging for you to fill? How much of your time do you spend attempting to fill the hard to fill positions?
8 Responsible Recruiting Good as Gold Training 7 When you look at the next 12 months, what candidates will be most difficult for you to attract? It would greatly enhance your ability to attract top talent if you could utilize our services, Could you tell me who makes that decision? Can I use your name, when I contact this person? Our Company Is Cutting Back Not Hiring This objection is rarely questioned and again an effective way to screen you out. Many of our clients are cutting their marginal employees, while they continue to hire specialized top talent. What is your most difficult talent to attract? Did you hire any over the past couple of years that you would like to upgrade? Is there a talent or skill missing in your department? When you look into the future, what is going to be your greatest hiring challenge? Are you currently hiring any specialized contractors? If you are not utilizing temps or contractors do you realize you could be overstaffed? Our Approved Vendors Fill All Our Positions Knowing they are not an approved vendor, many recruiters hang up! When I first contacted my top clients, they said the same thing to me and I earned my way to become their top resource for top talent. I d like the opportunity to do the same for you. Our goal is to become your Trusted Advisor, but we realize the first step is to become an approved vendor. What steps do we need to take? (Often there isn t an approved vendor list) We specialize in and represent an outstanding network of top talent. Do you have any hard to fill positions in this area we might be able to help you with? Does your firm hire contractors for project work or specialized areas? There is only one objection you can t overcome, and that is silence! If the person on the other end of the phone hangs up, your only option is to call back and apologize for being disconnected! (I have done that and it worked!) The person presenting the objection is really requesting more information. When they say, No they are really saying Know. They don t know why they should utilize your services. Become proficient at overcoming both client and candidate objections and you will attain your next level of success.
9 Responsible Recruiting Good as Gold Training 8 5. WHAT IT TAKES TO PUT 90 MINUTES BACK IN YOUR DAY Determine what is Best Use of Your Time? What is the 20% of your activities that provide 80% of your results? Ask yourself three important questions: What do I continue doing? What do I stop doing? What do I start doing? Start by eliminating the two greatest time wasters: 1. Writing and working assignments you should have never written 2. Time spend providing free advice to job seekers you will never place! Each evening write the six things closest to the money and commit to completing them daily. ONE LAST TIP: Ask everyone how many Baby Boomers they have retiring. Then ask if they have ever thought about bringing them back on a contract basis! Follow the advice and you will increase your sales and profits! Good as Gold Training 710 N. Main Street Crown Point, IN USA Phone:
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