Hiring and retaining the right talent is the goal for all employers. However, today, because of low unemployment rates, the ability for employers to find qualified talented people has become more difficult and time consuming.
In LinkedIn’s Global Recruiting Trends 2017 report, nearly 85% of talent leaders said that finding top talent is their number one priority. However, with less than 5% unemployment today, along with shrinking talent pools, and 95% of executives admitting to making bad hires every year, getting strategic hires right is only getting harder.
On the issue of recruiting talent, what I hear from our clients is, “I am unable to find the right people to fill my open jobs. I have tried everything without much success. I can’t service my customers and/or grow my business if I don’t fill my open jobs. Maybe I should hire a recruiter to help me fill this job, but I am not sure what’s the right firm to work with me.”
In this article, I will provide you information on how to select the right type of recruiting firm to fill your job openings. In the marketplace today, there are two types of recruiting firms: retained and contingency firms. Both firms will source and identify talent. However, in most cases their approach is somewhat different. These differences are as follows:
Retained Recruiting Firm
- This type of firm is generally viewed by most experts as delivering the best result. However, it is usually more costly. These firms spend up front time understanding your business, company culture, job goals and the candidate fit criteria before even starting their recruitment process.
- One consultant works exclusively on the search and is dedicated to serving you, the employer. This consultant never presents a candidate to more than one client at a time.
- The consultant thoroughly screens candidates before finalists are presented to the company, using initial screening interviews, face to face interviews, background checks and possibly even behavioral assessments.
- They will provide benchmark information on base salary, incentives, benefit coverage’s, and other perks for comparable positions in the marketplace.
- They act as the go-between to persuade passive candidates to be interested in the position and act as the primary sales person in describing the reasons why the candidate should come to work for you, the employer.
- Fees are as a percentage of pay and are billed in installments during the recruiting process.
- Once a candidate is hired, they normally provide a 1 year guarantee, and some firms even provide on-boarding coaching services to ensure a smooth transition during the initial months of employment.
Contingency Recruiting Firm
- Usually, this type firm does not have an exclusive with the employer.
- They are trying to fill the position as quickly as possible and at times provide the candidates to as many employers as possible.
- Employers may be somewhat more involved in the interviewing and the negotiation of the final job offer with the selected candidates.
- Sometimes they may specialize in an industry and/or function.
- Fees are as a percentage of pay. However, payment is not made until they find a candidate to fill the position and the candidate is hired by the employer.
- Once a candidate is hired, they provide a 3 month to 6 month guarantee.
- Consultant turnover may be higher due to the need to both sell and deliver on recruiting assignments.
Nothing stops you from conducting your own recruiting, it just depends whether you have the time and internal resources to handle the recruiting. Regardless of the level or title of the job, you need to decide if using an outside recruiter works for you.
We Do It All For You . . .
The recruiting process – searching, selecting, interviewing, recommending, on-boarding requires expertise, as well as taking your valuable time, usually better spent running your business. Human Capital Consulting Partners is an experienced, trusted advisor to companies just like yours. Let us handle your recruiting needs for any function – sales, marketing, business development, human resources, finance, operations and C-suite executives. Let’s discuss your open positions and how HCCP can help you save time and avoid frustration in finding the right person who will be a successful addition to your team.
For more information on how Human Capital Consulting Partners can assist you in developing your company’s recruiting process, contact us.