It’s a common misconception that a company either uses an internal recruiter, or an external agency and this opinion may unnecessarily be costing businesses a lot of time and money if they are not optimising their recruitment processes to be as efficient as they can be. An industry specialist recruitment consultancy should take the time to work backwards from a company’s goals, to really understand the needs of the business, and work towards filling the skills gap as opposed to a defined number of roles as is often the case.
From this point a partnership can be fostered between the in-house recruitment function and their recruiting agency to optimise the candidate search. Making use of the in-house recruiter’s knowledge of the company culture combined with the agency’s multi-channel access to the talent pool. By working in partnership, the recruiting process can be optimised to be more time & cost efficient.
The Cost of a Poor Recruit
In 2015, the Recruitment & Employment Confederation (REC) published a report titled ‘Perfect Match: Making the right hire and the cost of getting it wrong’. In the report they explain how much a poor recruitment choice can affect a business financially. Above is a summary of the costs that can be incurred from a poor hire in a junior to mid-level role. The recruitment process is costly and can affect a business’ productivity for up to 12 months as the new starters settle into their role. In a business environment as fast paced as the technology industry, the time lost to a poor recruitment decision can be equally damaging to the business’ productivity.
Bill Richard, UK Managing Director of Indeed believes hiring is one of the most important aspects of growing a business, and that it can be the costliest when done wrong. In May the Office for National Statistics released their latest report for unemployment in the UK. They found that employment was at a record high of 75.7%. Whilst this is fantastic news for the UK economy on a macro scale, this is causing the pool of available labour to tighten, putting pressure on getting recruitment right the first time around.
The very process of recruiting offers the opportunity for the consultant to become an ambassador for the company, adding a channel to their marketing strategy. The consultant will be a voice for the company within the candidate talent pools that the agency works within. It is often the case that the agency will have a better connection with the talent pool than an organisation, due to the expert industry knowledge and their partnerships with several organisations within any given market. This access to a wider audience is a service a recruitment partner should be able to add and can be leveraged to communicate and enhance the business’s employer brand.
It is sometimes easy to forget the services an agency offers beyond sourcing talent for an organisation. Working together in a successful partnership, we can review pay structures, benefits packages, job satisfaction, incentives and other matters concerning staff morale. This is to ensure that we can offer your new starters the best possible environment for them to fulfil their potential. Throughout the time working together, the consultant can take an in depth look at how an organisation’s remuneration package compares to other companies in their market, and spend time developing a strategy to maximise employee satisfaction with financial & non-financial incentives such as; Bringing guest speakers into the workplace for seminars, an annual conference trip, company-wide holidays, etc. This is a very important aspect of the process as it can reveal the reasons a competitor may be more successful in securing the top talent available, for reasons other than simply monetary renumeration.
Do we need to fill roles or skills gaps?
As previously mentioned, an important aspect of the recruitment partnership is an exchange of information. In this process it is important to outline the needs of the business and what they hope to achieve through the placement. This means it can often be more valuable to determine the skillsets the company wishes to add to their business, rather than a prescribed number of roles they are looking to fill. It is often the case that a company requires a set number of skills to be added to the business and have a very rigid idea about the number of individuals required to bring those skills to the company. It could be the case that a single person has several of the skills required, reducing the number of recruits needed, or by splitting the skillsets you facilitate an easier hiring process which is more beneficial. Part of our process when working with a new client is to hold an honest discussion about where they feel their advantages and limitations in attracting talent to their organisation are. In this discussion your recruitment partner should be able to draw upon their experiences of similar hires with companies within the industry and build a plan of action as to how they can maximise the attractiveness of their vacancies.
The relationship between agency and client is a partnership, in which both are equal partners and work closely together to create and implement a strategy that keeps the organisation on track to achieving their business goals and objectives. The key benefits of this partnership are:
This bond between consultant and in-house recruiter then becomes stronger with each placement.
After all, two heads are better than one