Starting a Staffing Agency: Should you be using a recruitment CRM?

If you find yourself asking the question “Should my staffing agency already be using recruitment CRM?” the answer is very likely a resounding yes.

Though the need for such software differs from one company to another, its sheer potential for increased ROI and efficiency of internal processes makes it an indispensable boon to all staffing agencies, an edge that should never be overlooked.

1- Signs you need a recruitment CRM

Not only is it a solution that meets a specific need, but it’s also a path of improvement regardless of whether your company can function without it or not. The fact that 73% of companies say client experience is a major factor in their decision-making process, as published by PWC, should be enough of a sign that adopting a recruitment CRM can only affect positive change.

You’re already on the metaphorical train platform. The question is whether you want to board the same train as everyone else and hire through traditional and outdated methods or opt for a faster, more efficient option.

  • Dissatisfied clients

If your clients are dissatisfied, this could point to a number of issues. Though it’s very often performance-based dissatisfaction, a lot of clients walk away from recruitment agencies when they feel they aren’t being given a suitable amount of attention.

A dissatisfied client is the first sign that you haven’t made much of an effort to cultivate a robust relationship with them. According to an article published by Salesforce, 69% of customers expect a connected experience when they engage with a company. Granted, there’s a lot that can be done in this regard, but this percentage places CRM adoption at the top of your to-do list.

  • Data hunt & communication issues

Data hunt in this context refers to the habit of scrambling to find client data every time it’s needed. 

If your recruiters find themselves constantly emailing colleagues in the hunt for a client’s data, you’re wasting valuable time. Furthermore, having client data dispersed across multiple files, folders, and platforms is simply impractical, and inserts a layer of discomfort into day-to-day operations. 

Now if we were to consider how communication is affected by the absence of recruitment CRM, we would find that there is a wide margin for error. Without CRM software, changes to client information and meeting updates become an unavailable asset in the hands of whoever handles client discussions. 

If not documented, immediately updated, and distributed to the team, the rest of the recruitment agency would have no way of knowing what changed, if new instructions were provided, or if the goal itself is still the same. And while this affects internal team operations, it also puts a strain on the relationship between your agency and the client.

  • An unnecessarily long onboarding phase

If you aren’t using a recruitment CRM to keep track of your clients, any new recruiters joining your team are in for an unpleasant ride. As we mentioned earlier, conventional methods of data management make accessibility a true issue, and this is never more pronounced than in the case of a new recruiter joining your ranks.

The onboarding phase is meant to be a period of time in which the new joiner gets accustomed to the workflow, the routine, the tasks, and of course, the clients and their expectations. When client information isn’t that easily accessible, this stretches out the onboarding phase to unnecessary lengths. 

Not only is this relevant to the provided training, but it’s also very important to consider that in learning the ropes, new joiners would struggle to navigate the labyrinth of client data you created on your Drive. In fact, it might frustrate them just enough to see them consider other options.

2- Benefits 

The benefits are more or less obvious. By adopting a recruitment CRM, you stand to increase your ROI, boost efficiency around the office, and in many ways make the life of your employees all that much easier.

Recruitment is an industry of constant grind, be it for clients or candidates. The difficulties that your recruiters face are far and wide, from turbulent talent markets, lack of qualified talent, geopolitical complications, and even difficult client expectations. 

But all of these challenges are made far worse given the recurring menial difficulties of data acquisition and management, manual input, non-centralized client information, and communication.

  • Centralized client data

Managing data in such a way that it remains readily accessible to any member of the team is a recruitment agency’s bread and butter. In order to ensure that operations flow smoothly, it’s important to centralize client data on one platform. This eradicates the issues mentioned above regarding data hunt and communication difficulties. In more ways than one, a recruitment CRM saves your recruiters valuable time that’s better utilized for the candidate’s side of the process.

In fact, using a recruitment CRM to maintain an up-to-date client profile saves more time than it appears. With all information aggregated, recruiters and sales professionals can collaborate on each project, communicate directly with each other regarding client tasks and even maintain a record of communications so that it may be leveraged in the future.

  • Conversion, retention, and ROI

Beyond the practicality of day-to-day optimization, recruitment CRM can be an advantage in terms of converting leads, retaining valuable clients, and increasing ROI. 

It simplifies the conversion process as it makes tracking leads much simpler. For example, Manatal’s recruitment CRM tool allows users to maintain a record of their active leads in various stages through a conversion pipeline view. According to our research, such software can boost conversion rates by 300%.

In terms of retention, a recruitment CRM helps your business display progress easily, showcase results, and keep track of client preferences. Though the data is very likely gathered by your recruiters, these are all elements that your sales team can leverage in their communications. 

According to research conducted by Nucleus, a CRM’s average ROI is $8.71 for every dollar spent. In fact, other sources state that CRM applications are capable of increasing revenue by up to 41% per sales representative.

It isn’t difficult to examine any recruitment agency’s current work model and find room for recruitment CRM. With an agency’s potential for accommodating multiple clients and its need for an active customer base, the benefits of implementing a recruitment CRM are clear to see if not evident from the recruitment team and the process itself already. At this point in time, it can even be considered an indispensable tool in every agency’s arsenal.

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