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:
- Recruitment is expensive with low value for money.
- Very high risks of money and time then a new person may not work out.
- Lack of quality service, just a numbers game attitude to sending CVs.
- Recruitment agencies don’t actually do the recruitment.
- Candidates often do not turn up for interview.
- Candidates arrive at interview without being briefed.
- Few good people available with a good work attitude.
- 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.