The Scale Up Workbook - Lesson 1: Vision

Currently standing at £31.5bn, and with a predicted increase in turnover of 22.1 per cent over the next three years, the UK recruitment industry is the largest it has ever been. More people are entering employment, job vacancies are increasing and skills shortages are looming large. There is certainly no better time to be in recruitment and to be thinking about scaling-up the UK’s recruitment firms for the future.

As anyone who has ever been there and done it will tell you, scaling-up in recruitment often requires significant change – whether this be to your business plan, your funding structures or your company’s processes and systems. The Scale Up Workbook has been put together with these changes in mind and includes helpful advice and practical tips from industry experts to help you to navigate your way through your own scale up journey.

Over the next seven weeks I'll be bringing you highlights from the Workbook, which is the latest addition to the REC’s ‘Scale Up’campaign. Without further ado...

Lesson 1: Vision

Having a compelling vision and a clear narrative for growth is vital when scaling-up in recruitment. The recruitment industry is vast and varied: some agencies market themselves as specialists in a certain sector, whilst others prefer to maintain more generalist profiles. Some wish to remain local ‘go-to’ agencies of choice, whilst others have truly global ambitions. As a result, there is no ‘one size fits all’ model to recruitment. In order to succeed in such a competitive industry, it is essential you are clear about the market factors in which you are operating and the type of services you are providing. This involves finding the right place for your company, the right price for your services and the right promise to make to both your clients and candidates.

To start to clarify your vision for your growing company, you need to understand where you want your business to go. If you want to remain a regional recruitment agency then you need to know your local market well and develop strong relationships on the ground. Staying local isn’t always the ‘easy option’, however. Growing a company on any scale is highly labour-intensive and you may encounter difficulties gaining access to the talent you need when operating in small towns or areas.

Depending on what sector(s) you operate in, going global might actually be a more logical move. In some private sector markets in particular, you may have to work with international clients and candidates, so developing a global dimension to your brand will help you to compete. Expanding internationally does not have to mean physically opening up a branch of your business in another country. Developments in digital technologies mean that you can now test the waters by trading from the UK first, ultimately helping you to minimise risk.

Regardless of whether you set your sights locally or internationally, the most important decision you can make for your business is to scale-up in the right market(s). To give your recruitment company the best chance of expanding, you need to make sure you are in a lucrative market with real growth potential. This can involve keeping a close eye on economic reports, such as the REC’s JobsOutlook survey, or trialling different sectors. You may also consider developing a niche identity for your business to enhance its attractiveness to your clients. As The Scale Up Workbook reveals, this may require you to expand into similar ‘vertical’ markets, so scaling-up in sectors with close synergy to your own can improve your company’s growth prospects.

To define your vision for your growing business we recommend you:

1. Be clear about where you want your business to go.
2. Work out the best place to take your business to.
3. Understand and track your chosen market(s) thoroughly.
4. Explore similar ‘vertical’ markets to your own.
5. Clearly define your services by listening to your clients and candidates.

For a comprehensive guide to scaling up your recruitment business, REC members can download The Scale Up Workbook for free.