Growing Your Recruitment Business Across Borders: Simple, but NOT Easy
Recruitment really has become the ultimate borderless professional service. Since 2020 and the new normal, more and more recruiters are spreading their reach to clients outside of their immediate location. The world is smaller than ever, and our solutions are applicable across jurisdictions. So the most ambitious of us have spread our wings, and now operate across borders.
Doesn’t that sound easy? Well, as with EVERYTHING in recruitment it is simple but NOT EASY.
Below is a blog interview exclusive by Recruitment Entrepreneur Middle East Local Partner Melissa O'Neill and Recruitment Entrepreneur Annil Chandel Regional Managing Director for Middle East, China, and India and Tony Davies Regional Managing Director for Netherlands, Spain, Canada, and the Americas.
I was delighted to catch up with them both to get their thoughts on this subject of our times.
M: Hi Annil – thanks so much for joining.
A: It’s always a pleasure Melissa.
M: Tony, as always, great to catch up, I only wish it was more often!
Before we dive into our subject, I think it’s actually really valuable to point out that we are not just talking the talk here at RE, we really are walking the walk.
Annil, you are joining us whilst at Heathrow Terminal 3 at a local time of 5.30am and Tony you are currently in the US where it’s just gone 12.30am!
Though you’re both based out of the RE London HQ it’s fair to say that the RE expansion globally over the last 12 months now sees you both regularly travelling across your respective jurisdictions. Despite the new normal and the borderless approach we have learned at RE that local nuances mean a lot.
T: That’s very fair to say Melissa! Is it too cheesy to say that we now live in a world where recruitment never sleeps?
M: It is, but I love it and support this cheesiness.
So, let’s dive in to our thoughts on this subject then because I’m personally super keen to get your own unique and localized perspectives on what is essentially a global subject.
I’ll kick off by asking you Annil, what are you seeing as the main driver now for existing small to medium recruitment businesses wanting to expand into further jurisdictions?
A: The post pandemic remote revolution is undeniably a leading factor in the expansion plans of the groups that we talk to. Recruitment companies themselves are now able to make hires from anywhere in the world in order to grow their own teams with top talent.
I personally see that there is a lot of value in localized teams, however with the right infrastructure in place and clear communication, deliverables and performance processes then there is no reason why a company in the UK for example, couldn’t hire recruitment consultants in India, the Middle East or the states and still have them as committed and engaged members of the team.
Its simpler than ever to expand reach this way and so I would say the main driver behind that cross-border growth is from the recruitment owners own desire to secure the best possible talent for their own teams.
T: I couldn’t agree more. And in a time where the value in diversity is embraced more and more I’m seeing that actually recruitment owners are building into their own hiring strategy the need for different cultures, languages, time zones, customs.
What better way to engage with your candidates and clients in what is essentially a relationship based business model.
M: There is nobody in my professional circle that I think is better at building relationships than you Tony, so I’m keen to hear from you. What’s your own insight on this drive to expand? because you have such a relationship first approach to everything, I think that you and I will share a view point here.
T: Well, personally I’ve always seen recruitment as borderless.
My experience throughout my direct recruitment career prior to joining Recruitment Entrepreneur, was always quite industry specific but borderless in nature. What I am seeing in the groups that I deal with now, and what resonates with my experience, is that where a smaller to medium sized agency holds key relationships with marquee clients, they’re now able to double down on following or expanding their solution through that key client relationship and grow with them.
Where a key client has operations in other jurisdictions an agency is able to use their relationships to open avenues across that international business. If they’re a true recruiter they’ll then even expand through referrals outside of that key relationship but this marquee client strategy is one that I’m seeing more and more.
M: Again, we’ve made this sound easy.
A: Simple! Never easy.
And, to be honest simple on paper is different to in practice. When you’re looking to expand a business over multiple geographic and legal jurisdictions it of course takes more than picking up the phone to a contact and start working.
Though this might be step one there are always going to be key localized nuances and requirements to ensure you’re operating compliantly. Not only for good practice but for your own governance as a business. If you are set out to build a business of true value this is a key element to any expansion strategy.
M: So you both agree then that understanding the market you’re expanding into is key. You’ve touched on the compliance and legal aspects of this but these localized nuances drip through into business customs and processes.
T: They do. That’s blunt perhaps, but it’s true. You said it best earlier, recruitment is simple but not easy.
There are of course standard processes and best practices within recruitment, but when you are looking at different regions and different customs it is not necessarily a one size fits all. We have seen that in our own international expansion too. Different market values dictate your approach and you have to be flexible as a business to review how best to adapt your standard operating procedures accordingly.
M: So, what would you say is the best approach then to managing this no one size fits all issue?
A: Diligent market research is the key first step. It’s likely that you are looking at a new region to expand into because you have identified an opportunity. Now prove its real, justify your assumptions, poke every hole possible into your plans.
If you are following a key client into the region for example, what other clients in the same or similar vertical are supported in the region? How many competitors are established in the market already, do key metrics like average fee, solution models and delivery timeframes make sense for your existing set up? And what are the legal requirements for operating in the region?
What will you need to adapt in order to service the market well and flourish as a new entrant?
T: I would add, and this is the relationship builder in me, once you have identified the opportunity and completed fastidious and comprehensive market research I would absolutely recommend considering a local partner. If you expect to hit the ground running and be able to operate like a local then you need localized expertise on your team advising you.
M: One of the big turning points in recent years when you review international expansion patterns is of course the remote revolution, born in part and certainly expedited by the pandemic as we discussed earlier.
Though its widely accepted as a standard working model the classic things that a leader needs to be mindful of when building a cross border team is the dilution of company culture and values. I’m certainly not saying these things become an issue all the time, at Wayfinders we have portfolio companies that are built entirely on a remote first basis and have team members all over the world. However, it is something that from a leadership position you will need to work on and have a committed strategy around this.
T: People like to feel connected, and recruitment is the ultimate people business. They want to feel connected to each other, their colleagues but also the business. Strong company values that are clearly communicated to and through every team member, process, policy and communication is key.
A: The best way I have ever seen this in practice in all honesty is our own experience with Recruitment Entrepreneur International. We have team members all over the world and despite setting out to expand into four key markets we now find ourselves 12 months later based in 17 locations all over the world.
Of course, this comes with inherent time zone, communication or alignment concerns but with a collective and supportive approach to building and representing the business as a whole we have seen examples of a strong company culture play out in front of our own eyes this year.
M: Would it be fair to say that it’s at this point where your processes, systems and structures as a business become invaluable. At RE I personally like to think of it as a foundation that we all then at our local levels are able to build from for what works for us in our respective markets. It enables reliability as to expectations and clarity of communication.
T: A solid foundation affords more flexibility than you could ever intend.
M: I agree, wholeheartedly!
A: And with that, my flight is boarding!
M: Annil safe travels, I believe you are heading to China so please do send our warmest regards to the RE team there. Tony, a pleasure as always, see you next time our paths cross at HQ.