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Professional Services · Recruitment and staffing firms

HR for Recruitment and Staffing Firms: Recruiters, Targets and Turnover

A recruitment firm earns from placements, so its own people are on targets, commissions and constant movement. Because income follows placements, targets and incentives shape behaviour, so how you set them decides who stays and how they treat clients.

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A recruitment or staffing firm sells candidates and placements to employers. Inside the firm are recruiters, sourcers and account managers organised by client, role family or location, working to monthly or quarterly targets with incentives tied to placements. New recruiters are often fresh graduates trained on the job, and the firm's value sits in the client relationships and candidate networks they build. Leavers can take both, and sometimes join a competitor or start their own agency. Targets, desks and incentives shape the culture more than any statement of values does. See also HR for professional services.

  1. Plan
  2. Hire
  3. Onboard
  4. Manage
  5. Develop
  6. Perform
  7. Engage
  8. Retain
  9. Exit
  10. Improve

When HR is weak in recruitment and staffing firms, you may see

  • Turnover among recruiters is constant
  • Incentives drive behaviour
  • Clients and candidates follow the recruiter
  • Training is shadowing
  • Targets look the same for everyone
  • Desks compete instead of cooperating

These are the places the people side of this kind of business tends to give way. The rest of this page works through them.

Who does the work in recruitment and staffing firms

HR here has to work for each of these groups, not only the office. The set-up below is written with all of them in mind.

  • Founders and business heads
  • Team leads and desk managers
  • Account and client managers
  • Senior recruiters
  • Junior recruiters and sourcers
  • Researchers and database staff
  • Operations, finance and admin staff

Where HR strains in recruitment and staffing firms

  • Turnover among recruiters is constant

    New recruiters join, struggle with targets and leave within months, while the firm keeps paying to train replacements.

  • Incentives drive behaviour

    If pay depends only on closures, recruiters chase easy roles, hoard clients and neglect the longer work that builds the business.

  • Clients and candidates follow the recruiter

    When a recruiter leaves, relationships and candidate lists can leave with them, and the firm has no hold on either.

  • Training is shadowing

    Juniors learn by listening to a busy senior, so skills and standards vary from desk to desk.

  • Targets look the same for everyone

    A recruiter on a rare technical skill and one on easy volume roles carry similar numbers, and the unfairness is obvious.

  • Desks compete instead of cooperating

    Teams guard candidates and clients, which costs placements the firm could have made together.

HR topics for recruitment and staffing firms

Start with the topics that matter most here: Onboarding and Probation; Performance Management; Retention and Attrition Management. Then work through the rest. Each topic is written for professional services, not in general.

Onboarding and Probation

A first day that is the same for the fifth joiner as the first.

Performance Management

Goals, reviews and ratings that hold up in a conversation.

Retention and Attrition Management

Who leaves, when, why — and which of them mattered.

HR Strategy and Workforce Planning

How many people, in which roles, by when — and what they will cost.

Organisation Design

Structure, reporting lines and who is allowed to decide what.

Recruitment and Talent Acquisition

Requisition to joining, the same way every time.

Employee Administration

Records, attendance, leave and the day-to-day HR that must simply work.

Compensation, Payroll and Benefits

Salary structure, payroll inputs and a month that closes on time.

Learning and Development

Training planned from need rather than from the calendar.

Career and Succession Management

Named backups for the roles that cannot be vacant.

Employee Engagement and Experience

Communication, recognition and the conditions people actually work in.

Employee Relations

Two routes — one for complaints, one for conduct — kept separate.

Policies, Compliance and Governance

Policies a manager can apply, and obligations with owners and dates.

Health, Safety and Wellbeing

Induction, records, incident reporting and follow-through.

Exit and Alumni Management

Resignation to relieving letter, in a defined order.

HR Technology and Automation

Records that survive people, and approvals that do not queue.

HR Analytics and Management Reporting

A short monthly pack management actually reads.

HR Operations and Governance

An HR function that runs the same way every month.

What a working HR set-up looks like

The pieces a recruitment and staffing firms business puts in place, in an order that makes each easier. Open any card for the detail.

Structure the first ninety days for new recruiters

A planned programme of sourcing, screening and client-handling practice with realistic early targets.

What this covers

A planned programme of sourcing, screening and client-handling practice with realistic early targets. The onboarding and probation work builds it.

Set targets by role difficulty

Targets that reflect the type of requirement, seniority and market, with incentive rules that reward quality and retention of placements as well as closures.

What this covers

Targets that reflect the type of requirement, seniority and market, with incentive rules that reward quality and retention of placements as well as closures.

Record clients and candidates in firm systems

All contacts, conversations and candidate data kept in a shared system, not on personal phones.

What this covers

All contacts, conversations and candidate data kept in a shared system, not on personal phones. GullyHR software can illustrate what that looks like.

Write exit and conduct terms clearly

Notice, handover, data return and conduct terms in every contract and checked at exit.

What this covers

Notice, handover, data return and conduct terms in every contract and checked at exit. The HR policies and governance work covers them.

Create a path beyond the recruiter desk

Routes to senior recruiter, account manager, desk lead and business head, with what each needs to show.

What this covers

Routes to senior recruiter, account manager, desk lead and business head, with what each needs to show. The career and succession work lays it out.

Start by checking where you stand

Before changing anything, find out what is true today. These checks take an afternoon and tell you which of the topics above to start with.

Share your requirements
  • Count how many recruiters joined and left in the last twelve months, and their tenure.
  • Compare the targets given to different desks against how hard their roles are.
  • Check where each client relationship and candidate list is actually stored.
  • Write down what a new recruiter is taught in the first month.
  • Ask senior recruiters what path the firm offers them.
  • Confirm with a qualified professional the registration, record-keeping and employment obligations that apply to your recruitment and staffing firms business.

Confirm with a qualified professional. What applies to you depends on your business, your state and your arrangements, and it changes. This page describes practice. It does not state a legal position.

How GullyHR helps

The services below fit this kind of business best. Each starts by recording where you stand, and every later report compares against that. We do not promise outcomes.

Start with a free conversation, or see the paid HR Diagnostic.

Our HR transformation approach

  1. 1

    Assess

    Understand the business, its workforce, current processes and HR challenges.

  2. 2

    Identify gaps

    Find the missing, weak, inconsistent or person-dependent processes.

  3. 3

    Design

    Create the structure, processes, policies, SOPs, dashboards and systems needed.

  4. 4

    Implement

    Help HR and department managers actually adopt the new system.

  5. 5

    Automate

    Digitise repetitive and approval-based workflows where it is worth doing.

  6. 6

    Measure

    Track hiring, attendance, employee cost, performance, training and attrition.

  7. 7

    Improve

    Strengthen the people-management system continuously, not once.

Blogs worth reading first

From the GullyHR blog: one on HR in professional services, and one on each of the topics this page points to.

More on the GullyHR blog.

Questions owners ask

Often because targets arrive before skills do. A structured first three months with realistic goals improves the odds.

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