A star performer just left your agency at the height of their development (and subsequent angst, apparently), and they either started a boutique agency or partnered with one, and they took their high performing relationships with them.
There are 20,000 staffing firms in the US today (source: American Staffing Association), and the number is growing, so you know this problem isn't going away on its own.
Now you're faced with the choice of whether to impose your non-compete (again) to slow them down. Conversely, you could put your energy into doing something totally radical and provocative... You could direct that energy toward fixing the problems that lead to these situations in the first place... and in turn do something that seems to have slipped lately - your ability to provide tangible value to your clients.
There are a handful of reasons why high-performing recruiters and account executives are leaving in record numbers to start their own agencies. Some of the reasons may seem obvious. Some not. But they're out there staring you in the face, and you have a choice to make.
A little tough love for you... Going after your ex-employees doesn't do anything to solve the problem. It compounds it. It shows your future stars where your loyalties are while you're asking them to pledge theirs to you. It sends mixed signals, and plants the seed that you don't trust them, and therefore, that they shouldn't trust you.
Worse, enforcing it is a HUGE distraction to you. It means that you're not addressing the issues that drove them away in the first place, and instead of finding ways to improve your organization and service offering, you're leading with animosity.
While I understand your hesitation to drop this time-honored tradition in staffing, I suggest a different approach.
The reality is that staffing is a sales-oriented industry. The people who land the job orders are often the same people who fill them. In some agencies, it's a dual role. In others, it's a rotating desk. Still, even in the cases where your separate sales and recruiting, the reality is still that the're still housed under the same roof.
It's only a matter of time before they realize that they're doing ALL of the heavy lifting, and with payrolling services like Upwork now catering to the boutique nature of 1-2 person operations, they're more empowered than ever to do it all - on their own...
Believe me... I talk to these Staffing Agency startups EVERY. SINGLE. DAY. It's precisely why we offer an agency accelerator program to help them get up and running. #sorrynotsorry, but too many of you are refusing to acknowledge this trend, and you're not supporting sales and recruiting the way you should be... in the ways that many of these start-ups are embracing from day 1.
At the end of it all, your star hustlers can make a LOT more money by going out on their own. If you're planting seeds of distrust from day one and providing little to no perceived value or support of their efforts, it's only a matter of time before they start wondering why they're not getting a bigger cut.
When somebody asks you or your sales people what makes your agency different, how do you respond? I'll bet that it goes something like this:
Your answers are generic. And they're impossible to prove... worst, you're simply wrong. Remember, you keep grooming and developing talented recruiters and account executives, and when they reach the height of their development, they leave you.
This is a value detractor, not a value add.
Even if they don't start an agency or take their clients with them, their departures leave relationship vacuums, and therefore, service vacuums. They take their knowledge of what made for successful placements with them, and their successors often feel like they're starting from square 1... more proof that you're not providing value to your teams.
It's likely never going to serve your agency in the instance that they start a competing firm. They won't have the resources to pay you if you win, and again, you're creating seeds of distrust from day one.
I understand why you may want to have one for big positions, such as C-level roles, but not for sales and recruiting.
The workforce is changing, and if you want to retain top talent in today's competitive millennial-driven environment, you need to be prepared to disrupt the status quo.
There are several ways you can do this:
By empowering them to sell at higher velocities with a supportive infrastructure, enabled collateral, inbound leads, transparent accountability standards, and supportive coaching, you're enabling them to do more with less... which means more placements and bigger commission checks.
CONCLUSION
When it's all said and done, improving conditions for sales won't just improve your retention rates, they'll naturally help your agency better serve your clients.
Think about it...
Seeds of trust versus distrust means that they're less likely to badmouth you in the field. Supportive sales technologies, automation, and a 5-minute or less sales response time means that your firm is more reliable and better at understanding their needs. Inbound lead generation implies that you're providing value to prospects even before a job order is placed.
To learn more, schedule a free consultation with one of our staffing agency growth specialists: