What type of Recruiter do you need?
July 5, 2011
As 2011 progresses, it becomes apparent that there has been an ongoing shift in the recruiting world over the past 3-5 years, and that shift is most likely far from completing it’s evolution.
Just a few years ago there were a number of different search firms, from contingency to modified retainer, to fully retained. There also seemed to be enough business around to provide clients, jobs, and revenue to all of the firms in the market, not matter the size, scope, or success rate.
Then came the downward business and economic trends of 2007-2008, which spiraled wildly into what was for most businesses a devastating 2009. Along with the loss of jobs and income in the general market place was a similar, if not completely parallel loss in jobs for the recruiting firms in the country.
So what’s happened since then? Well, thankfully many businesses have been able to turn the corner and return to profitability, even if not at the pre-2009 levels, but what of recruiters? One surprising thing that draws attention is the increase in search firms. This is probably due in part to unemployed HR professionals becoming consultants and adding ‘recruiter’ to their available services.
This proliferation has added to the general confusion in the business community as to who to utilize when there’s a recruiting need, and there is increasing need as businesses recover and some expand and the available top tier talent gets gobbled up. The answer to this for many companies is to return to safe harbor, ie; go to the firm they last used or know best. While this is a convenient short term solution, there can be large dividends to an organization that chooses a firm that is right for their needs, especially in terms of finding the most qualified candidates for specific jobs/locations.
So who is the winner in this new economy amongst recruiting firms? It seems clear that the larger, more well capitalized search firms are gaining market share, mostly by offering companies large discounts based on volume, and their belief that more assignments on a contingency basis with lower margins will yield better long term profits.
So as an employer seeking outside help, what can you do to pick the right firm for you?
Determine what your needs are.
Is your search and/or industry highly specialized, and if so, are there firms who have the narrow but deep focus that you need?
Decide what you want to pay
Are you looking for someone to do all of the work, from sourcing, to references, to salary negotiation? Or do you simply need someone to source some potential candidates and you’ll take it from there? Are you willing to pay something up front or do you just want to see who’s out there, before paying anything.
Are you interested in partnering or do you just want resumes?
This will be one of the hot points in the next couple of years. After the job market stabilizes, and as more baby boomers leave the job market (many from critical positions), companies will be left with openings for highly valued spots that can’t be easily filled. At that time, it may be advantageous to cultivate a relationship with a recruiting firm that will partner with you over the long term, rather than simply act as a vendor.
