Why you should avoid 94% of recruiters’ calls and emails

Having been around the industry for over twenty years, it fails to surprise us that the recruitment industry is viewed by clients and candidates alike in a very poor light. Understanding how the vast majority of recruitment businesses operate can have a profound impact on your business and can also help you to understand EXACTLY which companies you should choose to work with. How do you find the 1% of Recruiters who will actually benefit your company? We want to break this down into a few key areas:

1. How do most recruiters operate?

Main Stream Contingent Recruitment Companies constitute 94% of the market. These recruiters compete with other agencies to fill a post. They sometimes also compete with their client who may be advertising on a job board or their website. The recruiter will only get paid should they successfully fill the role, so it’s all about delivering lots of CVs, fast! Quality is rarely their key concern. Recruitment for such mainstream recruiters normally constitutes a job board search, an advert, a sweep of their database and an overly rigid dependence on an increasingly unreliable LinkedIn – that’s it. This type of sourcing typically attracts the 3U’s – Unemployed, Unsuccessful & Unhappy Candidates. Typically, active job-seeking candidates who respond to Job Boards and adverts are artificially expensive. They are approached by multiple Contingent Recruitment companies, leading to more time wasted for you, the client. They are typically registered with 4/5 other agencies so, even before you interview, your chance of a successful hire is around 20/25% and then you will pay artificially high salaries for under-skilled talent. Of most concern with mainstream recruitment is that they generally get coverage of about 20% of the market. The real talent is often hidden away, not considering a move and certainly not perusing advertisements or job boards. They are not tied in to recruiters and have only a low key or no on-line profile. The recruiter’s real job is to find those people and to entice them! Nearly every recruiter will claim to be an “Industry Expert”, will promise to map the entire market for you and to get you the top 10% of candidates. However, they very rarely do. If a bigger fee walks through the door or your assignment proves difficult, yours will move to the bottom of the pile. This is even more likely if you skimp on the fee and engage multiple recruiters – then you really are making a rod for your own back since the Recruitment Company will chase the bigger fees and align their best candidates to where those fees are. Generally mainstream recruitment is bad for businesses across most sectors due to its reactive nature and the client having to overpay for under skilled talent. They tell you they headhunt and they don’t. They tell you they have enough expertise of your sector, your business and the role, but they don’t. They say they scan the world, but they don’t – they scan only what’s clearly visible to anyone. Many of these simply disappear into the night, never to be heard from again. The remaining 6% of the industry includes Executive Search Agencies (Head Hunters) and Recruitment Process Outsourcing (RPO) or Managed Service Providers, all of which take on exclusive search mandates. Most claim to use head hunting or targeted search to seek out and engage passive potential candidates on a selective and individual basis, rather than through broad brush advertising. When a client engages an RPO/MS provider, the client manages all or part of its permanent recruitment through one external agency, wheres Executive Search is generally related to one or very few searches only. Both the Executive Search and the RPO/MS approach can be very effective, but only if the provider has expertise in your industry, function or project. Unfortunately, less than 1% have such deep expertise – they tend to be generalists rather than specialists. Therefore, finding a great recruiter to work with is like finding a needle in a haystack! We discuss both further below.

2. How do you spot the right recruiter to deal with?

Whether you choose Executive Search or Managed Service, there are some simple things you can do or look out for, including: Check their Website for Links to your exact area – if it is very general, e.g. Technology Recruitment instead of specifically listing “Cyber Security Architecture” or “Banking Compliance”, then just walk away. You will end up wasting time sifting through irrelevant CV’s and, if by pure chance you find someone reasonable, you can bet you will be into a Dutch Auction. Check if they understand your role or the area you’re focussed on. If they say YES to everything then you have your answer already. If you are challenged with insightful questions then you are dealing with a recruiter who WILL help you to find the right person. Beware of recruiters who dominate the conversation to get all the role information from you first, in fear of being found to have no knowledge. So, take charge and ask questions first. Don’t be afraid to ask for referrals by clients in your EXACT space. This is a great way of weeding out. When they claim to be an Industry Expert, check their CV and on-line profile to see if they are who they say they are. Get the future line manager to grill them for depth of understanding. Don’t be afraid to ask their advice on an industry topic that is generally well known or to find out how they see a specific scenario playing out. If they pass tests such as these, they are likely to be someone you really do need to keep by your side as you may well have found your needle in the haystack. Even so, try them out with one assignment first, to see how they perform.

3. What are the best options for hiring the very best talent?

In our opinion, in order to really assess and gauge the real talent in a market you have only two options:  Head Hunters or Industry Managed Service providers.

Before you discount either, please review our advice on both. Let’s start with Head Hunters

Head Hunters, by which we mean pure-play executive search firms, are the very best option for hiring specific talent. A top rate head hunter will apply a thorough process and will normally uncover hidden gems that aren’t on anyone’s radar nor on LinkedIn or other social media. Headhunting does, however, have its pitfalls – paying a third upfront and a third on shortlist seems to be an expensive approach, and the overall executive search industry has about only 50% success rate. However, the better firms fare considerably higher.

Secondly there are again many generalist Head Hunters with no real specialisms to show other than a broad based website and little more of substance.   So, the same rules apply when considering, i.e. referrals, deep questioning, etc.

Thirdly, beware of the larger recruitment company’s sales pitch. You may be approached by a senior person, but the job gets passed to a junior for follow up.  Check who it is you will be working with.

Conversely, you may also want to consider engaging a Managed Service Recruiter. They will look after your entire hiring needs, either across your organisation or within a specific function. Since it is managed through one agreement and set of terms, it leads to far fewer recruiter calls, fewer interviews of better quality people and therefore much more management time for you to devote to building your business. If you already have other good recruiters for specific areas, they can also be engaged successfully via your MS provider.

Sounds really attractive, but there are also drawbacks to watch out for. Most of these companies are agnostic to a sector so have little or zero experience of your market. They will try to draw you into paying huge fees every month for their service with promises of great results.  They typically won’t – with very little improvement in the overall service and it may even be worse for senior hires.

You can find a few Managed Service providers who will charge you ZERO fee up front but will put their skin in the game with a success fee model.  Everyone wins!  You may already have a really great recruiter in play who would jump at the chance of working in a Managed Service type model. They will devote their business to yours and they will learn and grow with you.

A Managed Service Recruiter who has YOUR industry experience is like gold dust and can help advance your organisation dramatically.  Smart companies around the world are seeing really huge benefits in hiring through this type of arrangement, when handled properly.

We can advise you in these areas if you wish to discuss further.

3. What are the best options for hiring the very best talent?

In our opinion, in order to really assess and gauge the real talent in a market you have only two options:  Head Hunters or Industry Managed Service providers.

Before you discount either, please review our advice on both. Let’s start with Head Hunters

Head Hunters, by which we mean pure-play executive search firms, are the very best option for hiring specific talent. A top rate head hunter will apply a thorough process and will normally uncover hidden gems that aren’t on anyone’s radar nor on LinkedIn or other social media. Headhunting does, however, have its pitfalls – paying a third upfront and a third on shortlist seems to be an expensive approach, and the overall executive search industry has about only 50% success rate. However, the better firms fare considerably higher.

Secondly there are again many generalist Head Hunters with no real specialisms to show other than a broad based website and little more of substance.   So, the same rules apply when considering, i.e. referrals, deep questioning, etc.

Thirdly, beware of the larger recruitment company’s sales pitch. You may be approached by a senior person, but the job gets passed to a junior for follow up.  Check who it is you will be working with.

Conversely, you may also want to consider engaging a Managed Service Recruiter. They will look after your entire hiring needs, either across your organisation or within a specific function. Since it is managed through one agreement and set of terms, it leads to far fewer recruiter calls, fewer interviews of better quality people and therefore much more management time for you to devote to building your business. If you already have other good recruiters for specific areas, they can also be engaged successfully via your MS provider.

Sounds really attractive, but there are also drawbacks to watch out for. Most of these companies are agnostic to a sector so have little or zero experience of your market. They will try to draw you into paying huge fees every month for their service with promises of great results.  They typically won’t – with very little improvement in the overall service and it may even be worse for senior hires.

You can find a few Managed Service providers who will charge you ZERO fee up front but will put their skin in the game with a success fee model.  Everyone wins!  You may already have a really great recruiter in play who would jump at the chance of working in a Managed Service type model. They will devote their business to yours and they will learn and grow with you.

A Managed Service Recruiter who has YOUR industry experience is like gold dust and can help advance your organisation dramatically.  Smart companies around the world are seeing really huge benefits in hiring through this type of arrangement, when handled properly.

We can advise you in these areas if you wish to discuss further.

Mike Short

CEO

Mentys Executive Search

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