You do Business in the 21st Century. Is Your Recruiting in the 20th?

Feb 4, 2013   //   by Instigate   //   Articles, Blog  //  Comments Off on You do Business in the 21st Century. Is Your Recruiting in the 20th?

According to the American Staffing Association; up to 90% or more U.S. businesses use staffing services. Eighty percent of those who use staffing agencies indicate that they offer a good way to find people who can become permanent employees. These are impressive numbers that show the use of staffing agencies is deeply woven into the fabric of American business.

Taking these numbers into consideration, you would assume one would be able to put together an equally compelling timeline showing a rapidly evolving service delivery model. Going back two, five, ten or even twenty years the tools used in recruiting have certainly changed; but has the client/agency service model evolved? It is remarkable how little the temporary, temp-to-hire, contingent search and retained search pricing and delivery model has changed over this time-frame.

The client/agency staffing model as a key component of talent acquisition is broken. There, we said it!

The basic operational structures at a majority of agencies inhibit them from providing strategic value for clients. Driven by fees based off a percentage hourly and annual wages; they can only adapt to their earnings objectives. In this structure, a thorough understanding of a company, culture and organizational specific recruiting needs is difficult to obtain. When used as a key component of talent acquisition, it’s a model of inefficiency and ineffectiveness at a time when such attributes are the last thing companies and leadership should be tolerating:

• The agency business model is driven by making placements; whether it is at your organization or your competitor down the street.

• In this model speed and volume of placement holds more value than quality-of-hire, cost-per-hire and hiring manager satisfaction with the recruitment process.

• To compete for more volume, many agencies will lower their fees; but a lowering of fees does not raise the overall efficiency or effectiveness of the recruiting process.

• The agency business model is not built to be a high performance and metric driven talent acquisition solution.

Now more than ever, a fixed price recruitment process is becoming a best practice. With so many applicants using the internet to find jobs, the previous standard of service from the agency business model is becoming overpriced and unnecessary. The agency business model is not cost-effective and outdated when they are asked to act primarily as applicant sorters – a highly transactional process given today’s recruiting technology.

To be fair, the staffing agency model can play a valued role when delivering services from their core strength. Temporary staffing, contract placement and executive search are vital staffing processes for many companies. All too often, it is human resources or a hiring manager making a call to the Wizard of Oz [Wizard of Staffing], who mysteriously manipulates the recruiting levers from behind a curtain to grant you access to the agency’s exclusive candidate database. Why not manage your own recruiting levers and create your own exclusive candidate database?

The changing dynamics of recruiting has generated a demand for a cost-effective fixed fee recruitment services. Recruitment Process Outsourcing [RPO] is the answer!

Complete job requirements; applicant friendly online applications, ATS functionality, skills analysis, candidate slating, background screening and much more are offered by recruitment outsourcing to assist a company in making the right decision. Companies now more than ever have easy access to DIY recruitment.

Recruitment Process Outsourcing providers can help you conduct a thorough needs analysis to determine which talent solutions best meet your specific needs. This analysis will help you recognize what you do well and then selectively outsource the other processes. With RPO, you leverage valuable recruiting expertise to support [not replace] your talented people.

Reliance on the agency business model of last century is not adequate for twenty first century talent acquisition. RPO is well positioned to make the hiring process as easy and as professional as the client needs while providing access to the ever increasing recruiting toolbox at a greater level.

Matt Schreyer, President and Co-Founder of Instigate, Inc.

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  • Reduce Hiring Cost
  • Improve Candidate Quality
  • Shorten Time-to-Hire
  • Drive Employer Branding
  • Free Up Internal Staff
  • Lower Agency Usage