When running a recruitment agency, it is very easy for the Directors to get bogged down with the day-to-day operations of the business including managing staff, making placements and monitoring overhead, without taking the time to “put their head above the parapet” to properly review their business.
Planning a day each month or quarter to come away from the business and look at all the aspects to see what is or isn’t working and make plans for the next month, quarter, or year, can really help with the trajectory of the company. These meetings may be with the other directors and shareholders, key staff members, the company accountant and/or a business adviser/NED, to help everyone understand where the business is and set targets for the future.
Circulating an agenda for the board meeting is important so everyone can prepare in advance based on the points raised and here are 7 examples below:
- SALES
Making placements is the most important part of running a successful recruitment agency, so the first point on any agenda should be discussing the previous month’s/quarter’s sales. These discussions should include where deals have come from, key client relationships, PSL agreements, split of permanent and contract/temporary placements, future potential deals to name a few points. - MANAGEMENT ACCOUNTS
A quick review of the latest management accounts should be covered to ensure that the key stakeholders are aware of the company’s current financial position. - DEBTORS
Reviewing the debtor position is important to ensure that all parties are aware of any potential issues with payments from clients and how this may affect the company cashflow. The board meetings may also be where decisions on legal action or discussions about not working with bad paying clients may take place. - FUNDING & CASHFLOW
As there have been discussions regarding the financial position of the company, it is advisable to discuss the current cashflow position, so everyone is aware of any large payments due out of the bank account or if there are any pinch points over the coming weeks. If the company has external funding (such as invoice finance) it may also be a good idea to review this to ensure it is still providing the required levels of support to the business. - STAFFING
Internal staff can be the best or the worst part of running a business, especially in recruitment. Loyal, hardworking, and billing recruiters can help elevate the recruitment agency profit line whilst lazy, non-billing recruiters can be a financial drain on the business. Reviewing and discussing the productivity levels of the internal staff (via KPIs and/or Profit Vs Wages Reports) can highlight if there are any staff that need to be monitored going forward. It is advisable to also review any non-billing staff to ensure that they are working effectively. - INTERNAL PROCESSES
Technology within the recruitment industry is improving and changing all the time with many new software products being launched to help increase an agencies chance of engaging clients and candidates and making those all-important placements. Discussing and reviewing the current technology being used within an agency and/or looking at outsourcing processes within the business can be a good way to improve sales conversions. - OTHER BUSINESS
The final point on any Board Meeting Agenda should be an opportunity for anyone to bring up any other topic that may be relevant to the members of the meeting. Sometimes these topics may be light-hearted aspects such as staff incentives, rewarding a particular staff member or whether to allow dogs in the office, or they may be more hard hitting such as EMI schemes, opening new offices or international expansion.
MAYACHI LTD uses board meetings with its agency clients as a way of ensuring that all aspects of the business have been discussed and understood before making plans and targets for the next arranged meeting. These meetings can really focus the business on a forward trajectory and ensure that the Directors have the buy in for the next month or quarter.
