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Greg Savage: The sustainability of temp

April 04, 2024

Video Transcript


Greg Savage: I talk a lot about temp and people often think I'm sort of like anti-permanent recruitment. As if. I was a perm recruiter. I love it. It's beautiful. It's highly profitable. It's gorgeous. It's just very unfaithful and it's not sustainable as some people have found out in the last six months and permanent revenues have dropped for 40% in some cases. So, what you want if the temp market exists is, is a lot of perm but a strong temporary business because the contract gives you both profit and security. In actual fact, the best ratio at the gross profit level. So, that's net fee, income, temp margin and permanent is roughly 70% temp and and 30% perm. That to me is the sweet spot, because what will happen then if you do it well, and this is Nirvana, by the way, if you will get, even if you're a substantial recruitment company, you will get all your expenses for the entire business covered by your temporary business. And therefore, when you wake up in the morning, you know that every permanent placement is profit. How beautiful is that?



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