The 5 fundamentals of high-value agencies
and 5 actions for you to increase your own value
Every week I hear recruiters complaining that they are undervalued, that it’s harder to win good business at decent rates. But what continues to strike me when I work with high-value agencies is how they’re all performing well in five fundamental areas.
These aren’t just ‘nice-to-have’ principles. Each area contributes directly to the commercial success of the business, and explains why these agencies are thriving when so many struggle.
Here’s a breakdown of those five areas. I’ve added an action for each area to help you improve your own value.
1. Clarity
High-value agencies know what good looks like when it comes to pricing. Most importantly, they know that different roles require different approaches - so the right price for a role will depend on a number of factors.
Every consultant is clear about what these factors are, how these factors influence price, and how they can use them to negotiate effectively with their clients.
Action: as a team, talk about when and why you would change your prices. Agreeing on a clear set of guidelines that everyone works to will give you more consistent pricing across your business.
2. Confidence
High-value agencies have confidence in the value they add to their clients. I see this confidence come across everything from sales calls to fee negotiations. Clients feel this confidence too, which makes them more likely to engage.
Consultants know that recruiters offer huge value to clients, and they can put specific numbers on their value - for example, a sales recruiter can show that they place candidates who go on to bill £200k a year more than their team mates.
Action: listen to my guests on The Value of Recruitment Podcast talk about the value they create, and talk to your team about how you can put a number on your value.
3. Credibility
High-value agencies show their clients that they can be trusted to deliver. It’s clear that they are experts in their field, and their clients are reassured that they’re in safe hands.
Consultants know that talk is cheap, so they have a range of ways to show (not tell) clients how they do a great job.
Action: think about how you show (not tell) your clients that you are highly credible in your field. How many ways can you back up your claims of being an expert?
4. Customer-centric
High-value agencies understand exactly what their clients value. This isn’t easy - we usually think about ourselves rather than others - but when you get it right this allows you to really connect with clients on the issues they care about most.
Consultants know that different clients value different things, even within a niche sector, so they’re consciously tailoring each conversation to focus on the right value for that client.
Action: put yourself in your clients’ shoes. What are the three most pressing people issues they have? How do these differ for different types of client?
5. Commitment
Finally, high-value agencies use these fundamentals to gain real commitment from their clients. They rise above the noise of the contingent/retained debate to focus on why their clients should commit to them as a partner.
Consultants understand the importance of commitment, and they’re aware of multiple ways to win more engaged clients. Rather than just asking for blanket exclusivity on a role, they know exactly what they need to get to fill each role.
Action: make a list of the ways a client can show their commitment to you, and think about how you can win each of those things from your clients.
Get these five fundamentals right and you create your own high-value agency. Clients will demand to work with you, they agree to your terms and rates, and they give you real commitment with each role you work.
Want to know how you score on these five fundamentals? I'll analyse your value proposition and send you a personalised Value Review - just reply with your website address.
Jon
P.S. Simply looking through your website doesn’t give me a full picture of how you score on the five fundamentals. But in my experience helping hundreds of recruitment leaders to build high-value agencies, their website usually reflects the clarity, confidence, credibility, customer-centricity and commitment of the business.
Getting an external view of how you appear to your clients can be a game-changer. And if you want to build a high-value agency that wins higher fees and greater commitment from clients, it’s crucial to get these five fundamentals right.
So if you want to know how you score on these five fundamentals, just reply with your website address - I'll analyse your value proposition and send you a personalised Value Review.