The latest thinking, news and events from the world of Recruitment

What Drives your Company – Business Model or Commission Structure?


Last week while chairing two days of Elite Leaders workshops, we were joined by two outstanding speakers, Robin Seiger presenting on ‘Building a Success Culture’, and Guy Levine working on transformational digital marketing strategies.

Whilst the ground covered in these workshops was far too extensive to discuss here, in our group discussion we got onto the topic of successful economic models within our industry. This reminded me of a comment made by a Private Equity colleague of mine, who claimed that “a quality recruitment business that can convert Net Fee Income to EBITDA at 20% gets my attention; one that can convert at 30% gets my cheque”.

In reality, it is much more complex than that, but in this rapidly changing market of ours where we have as many pressures over finding talent as our clients do, and where procurement models are getting ever more sophisticated, how do we build a successful business model that will attract investors and drive up returns for stakeholders?