Tips for recruitment agencies in the credit crunch

I've seen several recruitment agencies go bust recently and also seen evidence in the news that a number of major recruitment brands are in trouble.  There's no sign that this economic sceanrio is a short term situation, so what can recruitment agencies do to survive the storm.Here are some top tips to help you increases your chances of sruviving and perhaps thriving through the credit crunch.Turn the screw on your suppliers, they are likely to be needing to keep customers too.  Contact them all and say that you are looking at alternative providers to cut costs and ask them if there is anything they can do to keep your business.  If you have 20+ suppliers and just 4-6 offer you a better deal you have saved money with next to no effort.Where contracts are nearing an end, make sure you ask at least 3 new potential suppliers to quote for your business.  This is no time to stay with a supplier ro pick a new one because you like the salesman.  Let them know they're up against several others and see if they will chop their prices to compete, make the current financial pressure work for you and you can reduce your costs.Take a close look at the return on investment of your present advertising campaigns.  Many successful recruitment agencies are guilty of not paying too much attention to this, perhaps rightly so if the results for the overall campaign are successful.  However, now that things are getting tight, you need to make sure that your money is well spent.  You may find some spend is ineffective and you should either stop it save or perhaps re invest it in a more effective place.Should you downsize staff?  This can be a very difficult decision, particularly if you have staff who have been with you for a long time.  However, you need to detach any emotional attachment to staff from a need to reduce costs.  Remember, you will always be able to upsize again later providing you are able to survive.  Your staff levels need to reflect the amount of work you have now, not what you had a few months ago, or what you hope to have in the future.  Recruitment agencies that hang onto additional staff at the moment when markets are down and falling may pay a heavy price.It's not all bad news for recruitment agencies looking to move their business forwards.  One agencies demise is another's opportunity.  When a recruitment agency goes bust, somebody somewhere will likely recover the pieces of their business.  Although the impact of the crdit crunch is to shrink markets, ultimately when there are less players left in the market to chase the remaining opportunities things may be even better than before.The current financial situation has already seen and end to some recruitment agencies and there is no signs that this will be a short lived crisis, so now is a good time to review your strategy, costs and approach to your business.  Sitting still hoping for the environment may simply end in tears.