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Whether you’re in HR, talent acquisition, or a business leader, we have one question for you.
Do you get real value from your recruiting agency?
Recruiting is a crucial part of running and growing your business. And there’s no doubt that a third-party recruiting firm can add a lot of value to your organization.
Since a third-party firm will focus entirely on recruiting, they can bring a level of expertise, experience and efficiency that can be hard to match.
Unfortunately, a lot of recruiting agencies don’t deliver nearly as much value as they should to their clients.
Only you can determine how much value you’re really getting from a recruiting agency. But here are a few thought-provoking questions to help you critically evaluate your agency.
What Does Their Business Model Really Incentivize?
No matter which way you slice it, any company’s business model is going to influence how they operate.
The standard contingent recruiting model means that an agency doesn’t get paid unless and until they make a hire.
The longer a search drags on, the more money a contingent firm loses. Additionally, it means they make more money if they fill your positions fast. There’s no incentive to take their time and ensure you get a quality hire.
The problem is that quality recruiting takes time – especially for in-demand roles or leadership positions.
You have to ask yourself how your agency’s model affects YOUR business.
Is your agency being paid to deliver real value to your business with hires that power your success?
Or do they maximize profits by making a lot of hires fast with quality as an afterthought?
Are You Paying More Than You Should?
A quality hire that excels on your team long-term is well worth a high asking price.
At the same time, the recruiting industry is fraught with agencies that charge excessive fees.
Start-up costs, high retainers, hidden fees with RPOs and costly commissions are all great examples.
Here at Qualigence, our annual cost-per-hire for 2020 was 16% of base salary.
That includes executive search placements, which often cost twice that much at our competitors.
Our hourly, non-commissioned model charges for our time and expertise – no more, no less.
We also now cap our executive searches at 22% of base salary and non-executive searches at 19%. Our clients pay for the actual hours OR the cap – whichever is lesser.
We still make an honest profit – we’re just cutting out the excessive fees that firms are used to paying with an outside agency.
The point is there’s no reason for you to pay any outrageous fees for quality hires.
Are You Getting Quality Hires That Excel Long-Term and Support Your Business Goals?
Let’s be honest. Anyone can find candidates that fit your job descriptions. But recruiting is bigger than finding candidates and filling roles.
The best recruiters in the business also serve as talent consultants. They ask the hiring managers hard questions about their goals, their needs, their current teams and so forth.
They help you get a better understanding of what they really need from a new hire…and how a new hire can help you achieve your goals.
It’s about seeing the big picture. Great recruiters understand how each hire will serve your business strategy and help you deliver results and profits.
The very first thing any recruiter worth their salt should be doing is working to have an in-depth understanding of your business, team, and needs.
Only then does a truly value-driven recruiter start looking for candidates.
But at a typical agency, a recruiter might take your five-year old job description, tell you it looks great, and start calling candidates without asking any of these hard questions.
Is your recruiter rushing to fill seats, or are they taking the time to understand your needs and make hires that power your success?
Building a Better Business Starts With You
Your recruiting process can make or break your business. The future of your company hinges on your ability to bring in the right people and build strong teams to execute on your goals.
Whether you’re in talent acquisition, HR, or the C-suite, you can make a difference for your recruiting and position your organization for success.
It all starts with looking critically about how you do things today and asking how you can do better tomorrow!
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