ClientflowClient concentration measures how much of your recruitment revenue depends on a small number of employers. A hiring freeze, supplier change or delayed payment at a large account can affect your whole desk. Measure the exposure before deciding how urgently to diversify.
Calculate the share consistently
Choose a period, such as the trailing twelve months, and one revenue definition, such as collected recruitment fees. Divide each employer's revenue by the total for that same period. Group related employers consistently and inspect the top three accounts as well as the largest.
Illustrative example: if one employer contributed $120,000 out of $300,000 in collected fees, its share is 40%. That describes exposure; it does not mean the revenue will disappear or set a universal safe limit.
Stress-test the business
Ask what happens if the largest employer stops new assignments for three months, an invoice arrives late or several employers in one sector freeze hiring together. Review cash reserves, committed costs, work in progress and your ability to win and deliver other searches. Revenue concentration and cash-collection risk are related but different.
Set limits from your circumstances
Choose internal review thresholds based on margins, cash, contract structure and sector exposure. A percentage such as 30% can be a chosen warning line, but is not an industry law or a guarantee of safety. Review the trend and the commercial relationship alongside the number.
Diversify while serving current clients well
Protect delivery at the anchor account and reserve capacity for employer-side BD. Review suitable past clients, research new employers your desk can serve and avoid conflicts or confidentiality breaches when using proof. Permission to mention a placement does not imply permission to name the employer publicly.
Track new billing employers as well as assignments. Several new roles from the same employer can increase revenue while leaving concentration unchanged. Use the weekly BD plan to keep diversification active during delivery.
Common questions
How do I calculate client concentration?
Divide the revenue from each employer by total revenue using the same period and revenue definition. Group related employers consistently and review the largest accounts.
Is 30 percent a universal safe client concentration limit?
No. A percentage can be an internal review threshold, but cash reserves, margins, terms and sector exposure affect the risk.
Want the pipeline without building the machine?
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