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Recruitment agencies threatened by internal recruitment trend

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HC Online | 02 Jun 2011, 12:00 AM Agree 0
Recruitment companies need to build a closer relationship with a qualified talent pool if they are to survive the current shift towards internalised recruitment, according to leading recruitment executives.
  • Jason Murray - Rookie Recruits | 02 Jun 2011, 01:14 PM Agree 0
    I have to agree that the days of the generalist recruiter being able to charge 15% for sending a client a whole bunch of resumes is LONG GONE ! If you are not able to add some extra value, really get inside the head of the client & recruiting manager and match their needs quickly and effectively then you will not be long for this world. At Rookie Recruits we specialise ONLY in career start talent and offer a 12 month coaching & mentoring program at no additional charge, in fact, you will typically find us to be more competitive than a generalise recruiter, We achieve this price point through the use of systems, technology and a few other smarts (that I can't tell you about). The message from our preferred employers to generalist recruiters is simple - ADD MORE VALUE OR GET OUT OF THE GAME !
  • Paul.M | 18 Nov 2011, 12:03 PM Agree 0
    We recruit internally. The time and cost to get 5 people through a recruit agency is the same as 1 years remunaration for a fulltime employee. I would rather the recruite the 5 people myself (in 4 weeks p/t) and the money I have saved I can then put on a fulltime employee for 12 months.

    Regards

    Paul.M
  • Jack Feeney (Management author) | 24 Nov 2011, 01:36 AM Agree 0
    Interesting development but not surprising. Integrity is the new paradigm for business success and this is something missing in the majority of Recruitment Companies. It may seem over-simplistic but simply telling the truth in business is crucial. It's not all Recruitment Consultants that are untrustworthy; it's just the majority of them. Recruiter Culling may ensure that the ones who remain are trustworthy.
  • Kris A | 28 Nov 2011, 03:02 PM Agree 0
    I have worked in corporate HR and within a recruitment agency. I refuse to use agencies as I have found that regardless of the promises made, agencies are not able to provide the level of care to candidates and the internal contact that is required. The number of times that I have received a CV that is sold to me by an agency as being a fantastic fit for the role when it is clear that the candidate does not have requisite skills set or experience is astounding. I do not believe that the majority of recruiters employed in agencies are high quality HR staff - my experience has been that they are sales people with a bit of HR knowledge. Add to this the exorbitant amount that is charged to the client for the introduction to the talent (upwards of 10% of total package for a basic admin role, not to mention to the 17% plus for a more senior role) and it makes good financial sense to have your trusted HR manager control the process internally.
  • Rod Dalton | 29 Nov 2011, 08:24 AM Agree 0
    Yes I am a recruiter. Let's get that out of the way first.
    I have to agree with the criticisms of the comments above regarding integrity of "some" recruiting agencies, but please don't put all of us in the same basket. My company, Sydney@Work only put forward candidates that meet our client's brief. We do not send resumes (although we do provide a very cheap "advertise & screen" service for that market), but rather send profiles and only 3-4 if we think the candidate is suitable. Our Clients testify to this.
    Advantages of using a recruiter vs advertising yourself include:
    - access to greater number of candidates via database search, other similar roles being advertised, cross-referencing,
    - experienced writing advertisements and knowledge of effective search words to be used in adds,
    - less candidates respond to private advertisers due to fear of rejection and pre-conceived ideas of the company advertising,

    These are just a few reasons to use a recruiter WITH integrity.
  • Dan Sawyer | 29 Nov 2011, 03:01 PM Agree 0
    As a career recruiter I understand both arguements well, but I actually believe that using an external recruiter does attract more candidates. Often we are more honest when answering questions about the culture and role than the organisations themselves, plus I often get asked as first question "how much is it paying?". You don't ask this when applying directly for fear of an instant relegation to the 'NO' pile.
    My candidates often tell me afterwards that the position is a lot easier than I explained, because I hate getting the call that the role is nothing as explained. I put up the hurdles early. Companies can't. I go out and target top staff from competitors. Companies can't. I tell the truth, when companies can't.

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