If a company uses recruiters, it uses one of two types: internal recruiters . . . or independent recruiters.
Of the many trends that have emerged in the recruiting industry since the Great Recession, one of them appears to involve internal recruiters. Quite frankly, companies are using internal recruiters on a more consistent basis.
You know all too well how the scenario usually plays out. Somebody at the company snaps their fingers and says, “Hey! We could save money by not paying all of these recruiting fees. Let’s just hire an internal recruiter, pay them a set salary, and be done with it.”
You’re probably cringing. More than likely, that person received a raise, a promotion, or some combination thereof. That makes you cringe even more.
Unfortunately, sacrificing a long-term gain for a perceived short-term gain has become all the rage in U.S. business these days. One need only look as far as Wall Street and the inordinate amount of emphasis put on quarterly returns. However, it’s certainly part of your job to educate your clients about the perils of this “step over a dollar to pick up a dime” mentality.
Specifically, it’s your job to convince them of the value of using independent recruiters.
Independent recruiters = MORE revenue
Ironically, that value is tied directly to revenue . . . exactly what companies are trying to save by using internal recruiters as opposed to independent recruiters.
In order to excel and seize market share from the competition, companies must fill their most critical positions with the best candidates in the marketplace in the shortest amount of time possible. As you can see, there are three components in this equation:
- The position
- The candidate
- The time frame
In addition, there is a dollar amount tied to each of these components. We can describe this relationship as follows:
- The position is most likely a critical one because it helps to generate a tremendous amount of revenue and/or profit on a year over year basis. If it didn’t, then it probably wouldn’t be deemed as “critical.”
- If the best candidate possible is hired to fill this critical position, the talent and experience that the candidate brings will help generate even MORE revenue and/or profit for the company.
- The longer the position stays open—and more importantly, the longer it stays open without being filled with the best candidate possible—the more money the company loses.
Below are five reasons why employers should use independent recruiters as opposed to internal recruiters:
#1—They know the identity of the best candidates in the market.
Independent recruiters “work in the trenches” of the employment marketplace on a daily basis. They talk with scores of candidates every day and hundreds every week. They’re constantly looking at resumes.
And that doesn’t even count all of the A-level passive candidates they have in their recruiting database. After all, you can’t hire the best candidates if you don’t even know who the best candidates are in the first place.
#2—They know what motivates top candidates.
Independent recruiters don’t just know the identity of these candidates, but they also know what motivates them, as well. And when we say “motivate,” we mean what would convince them to make a move for another employment opportunity.
That’s because independent recruiters ask top candidates what opportunity would convince them to make a move. Then, when such an opportunity comes across their desk, they call that candidate immediately. “Remember that opportunity we talked about? Well, guess what?”
#3—They can help keep candidates engaged during the hiring process.
Let’s face it: top candidates can lose interest quickly if an organization does not properly engage them. Remember, they’re not desperate for a new job. Their current employer is more than likely treating them quite well. They would probably be content to just stay where they are.
Enter an independent recruiter, who realizes all of this and takes the proper steps to ensure that the candidate is engaged. These steps include communicating with the candidate on a consistent basis, letting the candidate know where they stand in the process, and what the next steps in the process will be.
#4—They’re able to “close” the candidate more effectively.
The negotiation phase is an extremely important and sensitive part of the hiring process. This is where employers can lose top talent if they’re not careful, especially in a candidates’ market like the one we’re currently enjoying.
One of the mistakes the employers are making in this current market is the habit of trying to low-ball the candidate when making the offer. An independent recruiter can draw upon their experience in such situations to advise the hiring manager that they should not do that. They will instead suggest negotiation strategies that will more likely meet with more success.
#5—They can help fill the position more quickly.
This is where the “rubber meets the road,” is it not? That’s because it’s not enough to fill a high-level, critical position with a great candidate. It’s better to fill a high-level, critical position with a great candidate quickly.
The reason is simple: the longer that such a position, the more that the employer loses in terms of productivity and profitability. A good rule of thumb is this: the more important the position, the more quickly it should be filled.
So—unless those internal recruiters are able to (consistently) hire the best candidates in the marketplace for their organization’s most critical positions in the shortest amount of time possible, then those companies are losing money. NOT saving it.
And that is why companies should use independent recruiters to carry out their staffing plan.