Are you Service led, or Product led? Does it matter?

 A simple question, but a frequent source of confusion in the Staffing Sector. If you think you’re both, there’s a good chance you’re not excelling at either. Let us begin with some definitions and context to add some perspective.

 If your business, or your desk, is Service led, you focus primarily on clients. You put clients, or perhaps a single client, at the centre of your world. You chase jobs and when you land one, you react accordingly. With a shiny new job in hand, you go and source the required product, whatever skills and experience are required. Your aim is to “service” that client’s needs, often across a broad, or generalist skill set. Your residual value centres on your knowledge of that customer, perhaps augmented by an alignment to a certain industry sector. When the sun shines, there is plenty of hay to be made, but there is also a high risk of dependency. Nevertheless, with genuine, reciprocal commitment, this can be a valuable cash generator.

 If you are Product led, clients are secondary - sacrilege, I know! Your focus is on developing a strong community of candidates, both active and passive, within a defined specialist segment, or function. You’re generating new candidates constantly and partnering with them exclusively across multiple opportunities. You “own” most, or ideally all of their options. You build expertise and earn credibility within your specialist market which subsequently leads to referrals and recommendations, often unsolicited. You rely on the quality of your candidates to generate new opportunities. You are not dependent on a single client, although you may enjoy repeat business within your area of specialism.

 One approach isn’t necessarily “better” than the other. The tangible threat is lacking clarity in which model you are leading with. So, why is the distinction important and why is it binary?

 Your approach to market should determine the sales process that underpins your business. It shapes goals, indicators, activity, business development, alignment, performance, pipeline, consistency, culture, progression, skills development, dependency, promotions, succession, scale, legacy and value. It’s not an insignificant list! Confusion regarding which model you are leading with is likely to lead to a dilution of focus and direction across many, or all of those areas.

 At the risk of sensationalism, I believe we have lost much of the Product led “edge” in our Sector in recent years, particularly within permanent recruitment where this model has historically worked so successfully, particularly with new venture launches. This is a consequence of at least 3 developments; firstly, the halcyon days of 2022 turned “hunters” into “farmers”. Subsequently, with the dramatic contraction in our market, the Sector has lost an estimated 32% of its workforce in the UK. With that exodus, I believe we have lost much of the skill set and attitude required for a Product led desk. Finally, managers have since been promoted who may have successfully delivered to buying customers, but would struggle to set up a new market, or train consultants to be independent, professional and valued specialist resource partners rather than transactional, generalist and reactive "order takers".

 For those existential conspiracy theorists, AI and automation will be the least of our problems in Recruitment if we focus purely on the transactional matching of active candidates with actively hiring customers – surely that dynamic of least resistance is the low hanging fruit for the rapidly emerging Tech in our Sector?

 In summary, a Service led business will of course have an approach to generating the best candidates available, while a Product led business would, I hope, want both the customer and candidate experience to be memorable for all the right reasons. But for new revenue generation, my personal belief is that commitment within a business unit should be directed to one, or other approach. In its most simplistic form, you are either chasing demand, ideally the next “big account”, or you are building client independence by weaponising a niche candidate community. Lack of clarity and commitment will impact focus, process and, subsequently, create a shortfall of performance against potential.



 Whichever approach works best for you, as we start to see conditions warming, what a great time to honestly and brutally assess what you do, what you want to be known for and reset your foundation for future growth by building your castle on rock rather than sand.