In our previous blogs (here and here), we looked at the reasons why Labour Market Insight (LMI) is becoming increasingly crucial in the Recruitment industry, and why this has led to our partnership with the Recruitment & Employment Confederation (REC) to bring localised LMI to their 3,000+ members, through a series of local employment reports.
But what are the particular applications for recruiters to use LMI to grow their business? A number could be cited, but below are five of the most obvious ways in which your recruitment business can benefit from using the insight.
1. Mitigating the risks of making bad investment decisions
Every decision a recruitment organisation takes to invest money, time and effort comes with an inherent risk. Are you sure that you are investing in the right location? Is this the right time to be trying to grow your presence in this sector rather than that one? By giving you a far better understanding of where talent demand is projected to grow or contract over the next few years, localised LMI puts you in a better place to make vital decisions about where to invest, on the basis of solid evidence that you can trust, rather than anecdotal evidence or even incomplete data. Your organisation can therefore mitigate its risks, as you make key investment decisions, confident in the knowledge that you are basing them on the most comprehensive insights about the labour market available.
2. Diversifying your business to include new locations and sectors
How do you know where you should locate your next regional recruitment office? Without solid data to enable you to identify the areas of the country where your current sectors are set to see growth, this is a hard and often unpredictable exercise. And if you are thinking about expanding into other sectors than those you are currently serving, how do you know which ones are worth “betting on”? Again, without robust, detailed data, this is a hard question to answer. But if you do have access to holistic LMI, by using the data to identify new locations and new sectors where you do not currently have a presence, you can therefore expand and diversify your business into new areas and new sectors, confident that the decisions you are making are based on real demand.
3. Consolidating your existing business
One of the ways existing Emsi customers are using the data is in helping them consolidate and streamline their business. By commissioning a detailed scan of the markets and locations they currently operate in, they have been able to get a much better sense of where they might have cross-brand competition in similar markets; where there is a lack of alignment of existing offices with the needs of the markets they serve; and where the market is more or less crowded in terms of competition.
What this means is that these businesses are then much better placed to make good, strategic decisions around where they might look to acquire new businesses or consolidate their existing brands, on the basis of detailed and robust insight about real world demand for talent.
4. Helping your sales team stay ahead of competitors
How can your sales team make your company really stand out from your competitors when it comes to pitching for new business? There are no doubt a number of ways, but one of the most crucial is knowledge: how much does the sales person actually understand about the sector and skills needs of their prospective client? The answer to this question can be a determining factor between whether your company wins that new business or loses out to other companies.
Our data can put your sales team far ahead of their competitors. Imagine them pitching your company to a potential client, but doing so possessing a wealth of insight about their sector, how much it has grown over the past few years, how much it is projected to grow in the future, what sort of occupations it employs, and the hard skills that are most in-demand in the industry. Putting such insight into the hands of your sales team is bound to be a powerful tool that they can use to demonstrate knowledge of their potential client’s business, showing that your company really is on a different level than its rivals.
5. Building and enhancing your ongoing relationships with your clients
Just as the data can help your sales team as they pitch for new business, so it can help your customer service teams as you seek to develop and retain the business you have already won. Again, the key thing here is knowledge. By referencing the data on an ongoing basis, bringing up what it is showing and how the sector is projected to change, your customer service representatives can set the context for their discussions, demonstrating to their clients that they are aware of how the industry is set to perform and change over the next few years.
The recruitment industry is undergoing big changes, and the next few years will no doubt see a consolidation of the marketplace as some companies survive whilst others fail. As Neil Carberry writes in the Foreword to our new report (which you can download by clicking on the image to the right), one of the biggest factors in whether or not your organisation achieves success will be access to good data, and the reason for this is that it is through good data that you will be better placed to minimise your risks when making big investment decisions; better placed to spot new opportunities to grow and to consolidate your existing business; and better placed to ensure that your sales and customer service teams possess the knowledge they need to differentiate your company from your competitors.
To find out more about how our data can help you, watch this short video from our Director of Workforce Intelligence, Matt Mee, as he explains more about our mission to “democratise data”, getting it into the hands of those who can use it to make better decisions that bring success: