An Alternative to Traditional Recruitment

Recruitment agencies operate in much the same way as they have for decades!

They don’t innovate because companies keep paying their fees, seeing no viable alternatives other than advertising directly. We live in a world where finding the right person for the job is essential and there are an abundance of recruitment agencies to aid you in achieving this; however, what do recruitment agencies actually do? Traditionally, they charge introduction fees for sending you a flow of CVs from a job board and screen candidates with interviews before they are sent to you, the client. You are then left to do all the recruitment, interviewing, referencing of candidates and dealing with the time wasting candidates that do not turn up. Then if you take a candidate on board after doing the recruitment, they then charge you for the recruitment that you just did. And you pay it?

The downside of using a recruitment agency:

1. The cost of time – Using a recruitment agency still requires a representative of your company to spend their time interviewing and meeting candidates and the biggest recruitment expense is your time. What is your hourly rate value to your company? Add that lost productivity to the recruitment bill whilst you are reading CVs and interviewing and you will see the true cost of recruitment.

2. What is in the recruiter’s best interests? – If you are currently using a recruitment agency take a look at their website and you will probably see a number of different jobs advertised in your area, with all very similar requirements. Your recruitment agency is actively sending the same people to you and your competitors. In other words making your life harder and you pay them for this?

3. You cannot judge a person by a CV – CVs are mostly written by the candidate to sell themselves so therefore, are they the most reliable source for judging a potential new employee? In many ways, what the candidate did yesterday is not the main point, it is all about the here, now and future. Most CV’s have generic phrases like, “I am good in a team or as an individual.” Then there are the claims of their achieving in their last employer which they shy away from when you ask for evidence. It is far more important to judge a candidates goals, attitude, motivation, desire to succeed and corporate culture fit in our opinion. Skills shortages if not extreme can be addressed with training, attitude cannot.

4. Are they right for you? – Recruitment agencies want their candidates to get the job because this is when they earn their fee; hence they tell the candidates exactly what they know the client wants to hear in the interview. They also tell the candidates what they want to hear. The agency’s interest of course is they stay just long enough to cover the rebate period. Then their interest is to get a new candidate and of course a new vacancy to work on.

To save recruitment fees some companies choose to advertise ‘on the cheap’ and do it directly, however this is truly not the cheap option.

The downside of advertising yourself.

1. Stick to your own strengths – Even for a small company when you choose to recruit it is a full time profession in itself and do not underestimate how difficult and ultimately how time consuming a task it is. If recruiting directly worked why would the multibillion pound recruitment industry even exist? All advertising agencies will tell you it works when you do a run of seven adverts plus, so one off adverts and free trials are largely ineffective. Ever seen an advert on TV or anywhere else just once?

2. Advert Writing – Writing a job advert in itself is an art and a science. There are many things to consider when writing job adverts, such as how to title a job and when to place it. Good English skills is not a substitute to knowing how job advertisements pull and don’t pull. You will also pay up to ten times more than an agency would with a quantity based annual contract.

3. ‘Ad Blocking’ – When a recruitment agency sees a company advertise directly they will firstly contact you to try and win your business, this is after all where they earn their money. However you may not be aware of what they will also do. Ever wondered why your adverts don’t pull candidates well and yet agencies seem to have plenty of people? This is sometimes because they ring their best current candidates and tell them they are putting them forward for the position and they do not need to apply directly.

4. Confidentiality – We live in an age where people do not like to be rejected and in recruitment 9 out of 10 people are unfortunately rejected. Professional consultancies will keep your name confidential for as long as possible. If you do your own direct recruitment not only will you spend hours speaking to candidates on the phone, but you will be inviting unscreened candidates into your office and place of work. Armed with your company name the rejected candidates can easily take to the internet and slander your company, therefore confidentiality is critical.

5. Recruiting An Elite – Potential top performers are worth their weight in gold and current top performers are often not actively looking for a new position, hence utilizing trade tools to find this talent is one of the biggest reasons you should not recruit directly on the cheap. You just wont reach them. When someone good does apply are you geared up to respond immediately and sell them the position?

To explore how Success Moves Consultancy addresses all of these issues, gives you far greater service AND less cost AND less risk, ring a consultant now on 0203-675-9099. We offer a coste effective alternative that focucses on the best ten per cent of candidates tht you wil retian for the long term. And we back that statement with a guarantee.

Recruitment Choices?

Success Moves did some research on recruitment. Rather than just ask positive loaded questions, we went for the negative to find out what people really thought. We came up with the following responses showing that the recruitment industry has a very bad reputation. We wanted to get the detail on that to see what we could do about it. Here are some common repeated comments:

  1. Recruitment is expensive with low value for money.
  2. Very high risks of money and time then a new person may not work out.
  3. Lack of quality service, just a numbers game attitude to sending CVs.
  4. Recruitment agencies don’t actually do the recruitment.
  5. Candidates often do not turn up for interview.
  6. Candidates arrive at interview without being briefed.
  7. Few good people available with a good work attitude.
  8. Difficult to match to the corporate culture of a team.

I have always believed that “Contingency” recruitment, (where you only pay on someone starting and can use multiple agencies) is by definition almost going to undermine any quality service. If you pay a £6,000 fee in the end and employ 6 agencies, one will get £6000 and the others nothing. So on average that deal is worth £1000 to the agency and there is more than 80% chance they are wasting their time.

New recruiters to the industry are motivated to give a good service. What happens is they do this and interview properly and shortlist and then find out someone got on their quicker and all their work was for nothing. So, with this learning they compromise quality for speed and start making money. Contingency recruitment is all about speed. The top billing recruiters in the industry focus on both candidates and clients that can make fast decisions. Clients that are slow get the second tier of candidates. As they are not greatly matched it causes high staff turnover generating more work for recruiters.

Companies when recruiting are very anxious, having mostly had a bad experience of finding someone that later drops out after the rebate period and they are left with nothing, the budget is spent. They also find that a recruitment fee can be relatively high and it is a large amount of money to find all at once, before they have had much return from their investment. They put up with this through lack of choice or alternatives.

Having started in the recruitment industry in 1982, I am pleased to note that the industry lacks innovation. The processes are much the same as when I joined, despite all sorts of changes. Permanent recruitment them was a percentage of starting salary with a period up to 3 months maximum for a percentage rebate if someone dropped out. Recruitment Consultancies, which always was a misnoma, send out CVs and arrange interviews. The company interviews the person and if they like them offer, take up references and when they start the agency/consultancy send a recruitment invoice.

Since those days we have had several governments, a few recessions, one that started in 2008 and is still ongoing.  A massive move to home and remote working. The Internet started, that led to online job boards and various other portals. Job boards meant that major sites would keep access of CVs and offer advertisements across all sectors. Software became more sophisticated, mobiles were invented and developed with all level of sophistication’s.

So how did all of this over three decades change the recruitment agency offer to customers?

Ah, let me tell you one thing, it is exactly as it was in the eighties!

Due a change or what?

Do you have a way that you wished that recruitment worked, a deal that someone offered.? Give me a ring on 0203-675-9099 and put it to me, Alex McMillan.