Register early and save on ERE Expo 2010 Spring in San Diego from March 15-17.

Blog Network

My Tirade about corporation's cost of hire figures follow this blog post

I'm not an angry person or a vindictive person. I don't think you can be an effective recruiter if you are. But it's frustating to me when a potential client complains about their hiring costs if they use my services.

Yes we charge a decent fee. But remember that we only get paid if we produce a candiate that the hiring manager wants. Also we're not just a source of resumes as some companies try to portray us. When we're involved throughout the hiring process we add value.

<!-- /* Style Definitions */ p.MsoNormal, li.MsoNormal, div.MsoNormal {mso-style-parent:""; margin:0in; margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:12.0pt; font-family:"Times New Roman"; mso-fareast-font-family:"Times New Roman";} @page Section1 {size:8.5in 11.0in; margin:1.0in 1.25in 1.0in 1.25in; mso-header-margin:.5in; mso-footer-margin:.5in; mso-paper-source:0;} div.Section1 {page:Section1;} --> When we’re involved with the hiring manager, or his technical designee, throughout the entire hiring life cycle, we develop an understanding of the company and department business model. We’re able to focus better because the hiring manager can help us better understand the development environment, key tools and critically needed skills, what types of people are the most successful, and under what working conditions the employee will be working.  We’re able to develop not just a technical profile but a personal one as well and we’re able to integrate our process with the company’s so that we’re better able to prequalify candidates on the basis of what is most important to the hiring manager. We share ideas on recruiting methods and the companies or industries known for developing the needed skills. We’re also able to remove barriers to the process and provide feedback on the search along the way. Lastly we’re able to advise clients on how to package an offer that is likely to be accepted because what we want most is a win-win-win for the company, the new hire and our firm.We close the deal!

Now as for the companies' costs. Do they include just cost for ads, job boards, job fairs, interviews, relocation and the like or do they include the salaries, benefits and other peripheral costs? As for my fees being included, they should be.  But how about the company who pays a recruiter a fee for 1 person and after that person is hired, sources him/her for names of former coworkers and hires them as well? Do they ever consider that when looking at the cost of hire when using a 3rd party? That's rhetorical of course. I once had a company pay me a $14,000 fee for an engineer and then hire 6 other engineeers by sourcing my applicant for former coworkers..

And here are some costs that companies cannot determine but should be a factor in their decisions.  How many candidates are lost because HR is "outsold" (yes it's a sales process) by a third party recruiter who really knows their business.  I'll tell you for a fact that I do it all of the time in aerospace and defense where I've recruited for almost 20 years.  It is especially easy to sell against a large company because large companies always with baggage. Or how about company employees who resign and have to be replaced because a recruiter raided a company.  We never recruit out of our clients so that only leaves the "non clients". I once recruited 20+ engineers from a large defense company in one year.  Bless their hearts.

So my suggestion to corporations is that they should consider all of the costs of hiring, the costs for not hiring and the recruiting firm's experience in their niche market when deciding whether to use a firm or not.  And don't worry about recruiting firms being vindictive. They aren't. But they have to get candidates from somewhere.

 

0 comments

Log in or register to post a reply.