The recruitment industry has become a lot more competitive than before. The challenge is greater for a staffing agency as they have to compete with other staffing agencies as well as the corporate recruiting team to close any job and make commission on those jobs.
And if your staffing team is not fast enough in sourcing the right candidates you may lose valuable client. But is the inability to find the right candidates for client jobs the only reason why your agency may be losing clients? Not really.
There are other areas of your agency business that may also be responsible for you losing clients. Let’s take a look at five such reasons.
Probable Reasons Your Staffing Agency is Losing Clients
You need to dig into the facts and try to understand why your clients are not staying loyal with your agency. It can be due to these probable reasons:
1. Not delivering satisfactory customer service
It is important for your agency to provide top notch customer service throughout the year. Your clients are not looking for a quick fix solution to their recruitment problems. They want you to fill their vacant positions with talented candidates. If you are concentrating your efforts only on maximising resume submissions only a the current job instead of providing a steady pool of talented candidates it is time to re-evaluate your customer relationship management. Your clients are looking for a long term partnership with you when they hire you as a recruitment partner.
With the gig economy slowly but gradually gaining impetus, your clients are looking for a partner on whom they can rely to provide a steady flow of talent. If they find that your agency is focusing more on closing the sales than assisting them in recruiting long term talent, they will move on to the next agency.
The best resort to this problem is by selecting a staffing agency software that has an inbuilt CRM module that can assist you in maintaining a healthy relationship with the clients during the hiring process. This will enable you to provide satisfactory customer service to your clients.
2. Poor communication skills
When you have a smooth communication channel with your clients, it makes them connect with you on a professional as well as personal level. If your clients find your communication irregular or too lukewarm they will not even think for a minute to leave your agency. It is a red signal for them, which shows that you are not listening to their recruitment wants and needs. They might feel that you will not be able to provide them with culturally fit candidates as you are not able to understand what they are asking for.
To solve this problem your agency needs to put in efforts to engage with the clients. The best way to deal with this situation is to have a deadline for each placement by setting up alerts for each timeline with the help of an effective recruitment software. This will also help you to track your progress in terms of hiring goals.
You need to stay in touch with the client in order to conduct necessary paperwork and information which is a prerequisite to make effective placements. This can be done through phone, email and personal communication. Face to face meetings, assist you in developing a personal connection with the client and gain their trust during the hiring process.
3. Failure to stick to a staffing niche
Instead of opting for a specialized sector, certain staffing agency owners decide to work for various industries. This makes it difficult for them to concentrate their efforts in a particular industry. It also means that they do not have an expertise or deep knowledge in a particular sector. A staffing agency can grow and retain its client when it specializes in providing a particular talent for an industry. Of course you can diversify as your team and clientele grows. But that can happen only after you have established yourself in a niche. If your agency tries to work in many industries too soon, there is a chance of losing clients because you cannot assure them of a consistent pool of right talent. You even lose out on offering valuable industry insights and knowledge. Without these things, your staffing agency goes to a new low by losing out on valuable clients.
4. Lack of back office infrastructure to implement the hiring process
If you do not have a proper back office infrastructure for implementing your hiring process, you will not be able to provide quality results to your clients. If you do not have a facility to look after job orders, paperwork, invoicing and staffing agency software your performance will reach the lowest point.
This will ultimately show up to the clients when you are not able to manage the payments and are not able to concentrate on fulfilling their needs. They will not hear out any excuses for the paperwork lost or any miscommunication and will leave as soon as they see that your staffing agency is not able to meet their needs.
5. Failure to attract talented candidates
Last but not the least, even if you have decided to work in a niche industry, but are unable to attract talented candidates then it will make you lose out on your client. One of the ways to grow your staffing agencies and retain your clients is by making an effort to build a talent pool of skilled and diverse candidates.
If candidates are not attracted towards your brand, chances are your career site is not mobile optimized or your social media activity is too low. Remember, a large part of the job economy is now consists of Millennials which makes the case for your staffing agency’s website to be mobile optimized which can make it accessible for smartphone users.
Improve your staffing agency’s client retention rate by keeping the above points in mind and invest in a good staffing agency software to help you automate repetitive and time non productive tasks so that you recruiters can spend time on building relationships with clients and candidates.