Recruiting Tips

Evaluating the Recruitment Solutions That’s Right for You

Within the recruitment world there are many offerings all aimed at making the fee valuable, palatable and worthwhile and they are all variations on a theme of contingent and retained recruitment. This article attempts to explain how the methods differ and which model to select for a particular role. We will start with contingent recruitment and then move through to retained recruitment, which sets the context for some alternative models. Enjoy the read.

graphic of retained contingent recruitment

This diagram shows you what solution would be suitable depending on the assignment that you have, remember it’s the balance between generic, specific, supply and demand which determines what approach you should use.

You should also check on the experience of the Recruitment Company and consultant before embarking on a retained or contained project as with any kind of head hunting the training and skills are paramount in the outcome.

Contingent Recruitment Solution

For the uninitiated; contingent recruitment could be considered a success based fee, in other words once the successful candidate has started in the role then a fee based on a percentage of the salary is paid to the recruitment consultant, this typically involves a rebate payable should anything happen to the placement during a pre-determined period.

Retained is the other most common approach to providing a recruitment solution and is typically employed when the role is of a high value nature. The recruitment consultant in this case is usually referred to as a head-hunter and the process is known as paid search. There are benefits to this and there are some disadvantages.

In essence there shouldn’t be any disadvantages at all as the process is aimed at ensuring the depth of search will be sufficient to source the candidate and the search company shouldn’t take on an assignment, which they believe is a paid search process unless they are certain that the role will be filled.

If we were to look at the two processes in terms of fee then it would look something like this:

graphic comparing recruitment contingent retained

 

The contingent approach is an effective model, high supply in a balanced demand makes this approach a sensible way to provide a recruitment solution. The client company will typically be working with a number of recruitment companies and the consultant who provides the most suitable candidate in the quickest time wins the race for the placement.

This approach drives quantity and lowers quality over the longer term. You can also expect to have the same CV from a number of the agents as the contingent world is mainly focused on the job seeker in the active market. Fee levels in this market are usually around 10% to 22%, there is little risk to the client in terms of cash outlay but there is risk in terms of time as if the role demands any kind of niche skill or trait then contingent will not resolve the process.

When a role demands a niche skill, culture or trait then contingent recruitment becomes much less effective as the number of candidates is reduced with each and every specific demand. This is in fact the method that head-hunters use to disqualify people, the tighter the search the more definitive the recruiter can be. We now enter the world of the retained search.

Retained Recruitment Solutions

Retained searches have a mixed reputation within the market place; the reason for this is poor delivery of service and management of expectations on the client and candidate sides. To carry out a headhunt takes skill and experience and isn’t something that should be taken on irresponsibly by the recruitment consultant.

The types of challenges the recruiter  faces would be a very narrow market, difficulty in contacting the suitable candidate with PA’s and gatekeepers and high expectations from the client, as promises made to secure the retainer and justify the fee are high.

Significant training should be given before any of the recruitment consultants can embark on a fully retained search and the job role should be analysed in depth to ensure the retained route is the most suitable solution.

One aspect of retained searches, which usually baffles the market, is that retained searches are a much higher fee than contingent despite the fact that the search is much more targeted and the client is working on an exclusive basis. The reality is that the search is very in depth and gaining traction in a particular part of the market is difficult.

For example; I once carried out a retained search for a major FMCG company, the search led me to Italy, as I don’t speak Italian I needed some help with getting past the gate keepers so I employed a local waiter from the Italian restaurant to open the doors for me and get me through to the potential candidate at which point the level of candidate was able to speak English.

So retained searches do take much more time than a contingent CV race hence the higher cost. The fee is structured as 1/3rd on assignment, 1/3rd on short list and 1/3rd on success. The structure of the assignment is such due to the high level of research required to source the candidates and the time required by the consultant to open the market up gently and in a thorough manner.

Contained Recruitment Solutions

Our experience within recruitment led us to develop the contained solution in a demand from our clients to end the CV race, repeat CV’s and low quality that they had been experiencing from their other providers at the time. They wanted a different result and as such they needed to find a different approach in order to change what was happening to them.

graphic contingent contained recruitment

The way in which Contained differs from Contingent is the ‘Contained’ search allows more depth of search than contingent would, this allows the consultant to deal with the more niche elements of the job and person specs which contingent recruitment does not allow.

If you can imagine a pond out in a field, around the pond are a series of fishermen all using their hands to reach into the water to try and catch a fish, the fish they would typically catch would be those fish that swim near the surface, it’s possible that the same fish would be approached by different fishermen and which ever fishermen dipped their hands in the most would probably find the most fish.

Now consider what would happen if another fisherman came to the pond and were to use a fishing rod? This would allow the fisherman to send his line out further and his bait down deeper meaning the fisherman would be working with different fish than those feeding on the top, his approached would be more controlled and the other fishermen wouldn’t bother the fish.

This analogy would try to explain the difference between contingent and contained recruitment. To add Retained to this then the analogy would be a diver and a harpoon, this approach would be expensive and very targeted.

With regard to the fee in a Contained search, the structure is a mix of the two previous solutions, an assignment fee (typically 1/3rd) is applicable to allow for the more in-depth search technique and the balance (2/3rds) is payable on success much the same as a contingent role.

As this type of assignment means exclusivity with the client and consultant the fee level can mitigate this meaning that this method is much more cost effective than retained and usually competitive with contingent. As the balance between candidate and client is specific but not actually niche then the search is more efficient in terms of time which is reflected in the fee charged.

In Summary:

  • The contingent assignment is useful when the role is more generic and the market is balanced well in terms of demand and supply.
  • Contained is very useful when it comes to a candidate driven role when the demand and supply is balanced more toward demand. This method allows more depth of search and some head hunting along with some of the other methods such as DB and boards.
  • Retained is a pure search assignment when the market is totally candidate driven and demand is far greater than supply.

I hope you have found this informative and if you have any questions or if you would like to clarify anything please do not hesitate to call us..

If you would like to discuss this then please get in touch with me and leave your comments:

Phone: 01925 747 712 Email: lnarraway@procorerec.com LinkedIn: linkedin.com/in/leenarraway Website: www.procorerec.com

Things We Think And Do Not Say

In the film Jerry Maguire, Tom Cruise plays a high-powered sports agent who has so many clients that he doesn’t really care about them. I bet that you can see the recruitment angle already….

Tom Cruise - Jerry Maguire

However, one night he has a panic attack in a lonely hotel room, and writes a memo titled “The Things We Think and Do Not Say: The Future of Our Business.”

One of the things he writes is that agents should be less concerned about money and more concerned about their clients. That gets him a standing ovation in the office, but a few days later, when he's fired, he understands why agents do not say those things they think.

He sets up his own agency but loses his entire client base, apart from the wide receiver Rod (Cuba Gooding Junior). Jerry is also joined by just one of his former colleagues (Renee Zellweger), whom he promptly falls in love with, and he builds a fulfilling relationship with Rod, where money is not the only object.

Rod learns to play from the heart and in the final scenes it is clear that their success only came because they cared about each other as people. Rod trusted Jerry with his future.

There are too many parallels with recruitment to mention in this short blog, but in the tradition of Jerry Maguire’s memo, here is one thought from me (that we don’t often say):

Recruitment is transactional because candidates don’t trust recruiters, and recruiters don’t do enough to earn their trust.

Clients in formal meeting

I don’t know where to start, apart from the obvious place…. It is thought that most recruiters are in it for the money. Place a candidate, get a fee, the production line of new “meat” rolls on and that is how it works.

Jerry Maguire felt that he was in the same place. Send a CV, get an interview, manage the negotiation, place the candidate. It is a process – the involved parties either agree on things or they don’t, and you move on. Sounds pretty transactional, doesn’t it?

Yes, it does, but there is always another way. As an industry, we don’t do enough for our candidates to trust us. Clients trust us because we invest time in building a relationship with them, but there are so many candidates coming through our doors that it is seemingly impossible to develop that personal connection with any of them.

Without this relationship with the candidates, it will always be a transaction – recruiters will never be able to foster a true dialogue to find the best possible fit for everyone.

For me, it is all about the small steps. It starts with truly caring about them as human beings. They are coming to a recruiter at a time of great personal upheaval – the least we can do is to make every effort to understand the person behind the CV. If we show them that we care, they will open up that little bit more.

This relationship may not last for longer than the duration of their job search, or even longer than the duration of an initial interview, but if a recruiter tries to care, then the candidate’s trust will be all the easier to earn.

Written by Lee Narraway and Edited by Paul Drury

If you would like to discuss this then please get in touch with me and leave your comments:

Phone: 01925 747 712 Email: lnarraway@procorerec.com LinkedIn: linkedin.com/in/leenarraway/ Website: www.procorerec.com/

A Case Study in Automotive

I've written a case study to share with you from one of our projects, this particular project continues to add significant value to our client and it is one that we are particularly proud of. Manufacturer auto industry car

 

The challenge we faced:

Our client is a global Tier One manufacturer within the automotive industry, turnover in excess of $25 billion annually and they design, manufacture and test a diverse range of automotive systems, assemblies and components for the OEM market and have over 250 sites manufacturing globally as well as many R&D and development sites.

One of the groups UK site had been loss making for a number of years and had picked up a bad reputation within the automotive sector as being a “revolving door,” with new employees coming in and leaving quite swiftly. This didn't reflect the ethos of the company, or other sites. A change of management and site culture was needed.

Senior directors from the company came over to the UK to look at the site and to consider all options for its future. They quickly realised the potential the site had and truly believed they could turn it around to become profitable. They noticed that some processes and behaviours within the site needed to be changed and a new senior management team was required to make this happen.

Manufacturer auto industry car

 

The most important things needed for the new team were structure, process, and a background within the automotive industry; individuals that had turned non profitable sites into profit making sites and sustaining that change. A belief in the culture and ethos of the group was essential. They consider themselves to have a very dynamic and employee led culture.

 

The difficult thing the client acknowledged was going to be the issue of trying to sell opportunities to potential individuals in the sector as they would probably be aware of the problems at the site, and would likely be stable within their current positions.

The obvious concern was that candidates could view moving to a company that had a bad reputation and perceived job insecurity, and the potential that the site might not being there in the next 12-18 months very negatively.

This would need to be carefully addressed and the genuine future plans, resources and commitment of the client effectively communicated at the very earliest stages of the search.

OUR SOLUTION

After a further meeting with the senior directors, we set up a plan of action and prioritised the positions they were looking to recruit, with the General Manager being paramount. We took details briefs from the directors to understand each of the roles in more depth, as well as the company culture.

We then went to the market to find relevant individuals for them. We used the ProCore four way methodology to full affect, as we knew we would have to approach the passive market to find the right people.

Once we had identified a long list of potential candidates through our research team, our consultants then contacted them confidentially and headhunted the relevant individuals, qualifying them against the roles in great detail.

Within a couple of weeks a short list of thoroughly vetted candidates was presented to the client; after a round of interviews the General Manager was hired, with other key individuals added to the team over the next couple of months.

Manufacturer auto industry

As part of our engagement we also helped the company draw up organisation charts, establish future vacancy requirements and to implement a structured recruitment process. For a short spell one of our consultants spent a day each week with the company to help embed these processes and concepts.

THE RESULT

The client was exceptionally happy with the quality of the candidates we provided, and the manner in which we worked. They particularly commented on the professionalism and the discreet way we handled the process, separating the ‘wheat from the chaff’ and the way in which we positioned the client’s plans and objectives.

With the new senior management team in place, the site quickly moved to profitability, the first time in twelve years, and staff attrition rates dropped dramatically. We are very proud of our involvement with the site and were very excited to learn that the GM we placed had been promoted to a wider more responsible role with the company and we wish him very well for the future.

If you would like to discuss this short article in more detail then please connect with me and let's chat.

Lee Narraway

Phone: 01925 747 712 Email: lnarraway@procorerec.com LinkedIn: linkedin.com/in/leenarraway/ Website: www.procorerec.com/

Try the Disney Way……

The Diversity of Disney

Workers in Disney diversity

Going to Disneyland is a magical experience.

Much of the enjoyment comes not only from the wonderful settings and characters but also from the people that work there. There are a wide variety of people from all over the world, at all age groups, all doing a mixture of activities with a common thread. They all try their best to give great customer service in whatever role they are involved with.

I am unfortunately not party to the Disney recruitment criteria, but you can be sure that diversity is high on their agenda. As long as you have the right “you’re going to have a great day today Sir” attitude, you’ve got the job, no matter whether you are 18 or 80, Chinese or Mexican, male or female. One thing is for certain, I bet being a “recruiter” for people at Disneyland is a lot of fun….

They have a laser focus on people who will give great service, and all the other criteria (such as age, gender and ethnic origin) come a distant second.

It made me think.

Workers in Disney Mickey

Working in the technical recruitment market as I do, a common issue that I come across is how to open the market up to source more candidates for a particular position. In the technical space, we are very niche in the way we view the skill sets required and the sectors we chose from. From an experience point of view, my clients are looking for very specific competencies, which makes it even stranger that the “older” professionals sometimes do not get considered as often as they should.

We have to be more focused on the requirements of the roles and let the other criteria fade into the background. An ambitious 25-year-old who only stays for 18 months would not be as good a hire as a 55-year-old who can utilise his experience not only in his role but also in a mentoring capacity for others. The lack of hiring boundaries for Disney was a real eye-opener for me.

https://youtu.be/hLmyFiN0TRs

What is also clear is the level of trust that Disney put in their workforce. It was very evident in everybody I met who worked there. From the guy who seemed convinced he had been born and raised in Fantasyland to the lady who was encouraging me to dance with the parade. They all operate freely and have obviously been trained very well and had the vision of the organisation expressed very clearly to them. Irrespective of background, you felt that they were part of the Disney family.

I agree that the skills required to work at Disney are more generic than many businesses, but the Disney “cast” are a shining example of true diversity in action.

Industry could learn a lot from the organization, training and culture that exists at the most magical place on earth.

Written by Lee Narraway and edited by Paul Drury

If you would like to discuss this then please get in touch with me and leave your comments:

Lee Narraway

Phone: 01925 747 712 Email: lnarraway@procorerec.com LinkedIn: linkedin.com/in/leenarraway/ Website: www.procorerec.com/

So Have You Met Shrek?

Don’t Judge a Book By The Cover

I shook him by the hand, but something didn’t feel right.

As a recruiter, I am used to listening to my gut feelings, but on this occasion, I couldn’t have been more wrong. I have changed some of the details in this story to protect the individual’s identity, but it was one of the biggest eye-opening interviews that I have ever conducted.

Shrek

I was in my first year of recruitment. At that time, interviews were still as nerve wracking for me as they were for the candidates, and I was admittedly a little green. Nonetheless, I prided myself on my intuition (gained from my previous career in industry) and had made a decent start in the profession.

Then, one day, Steve (name amended) walked into the room. He must have been the largest guy that I have ever met. He avoided my eyes as he walked in, and, with a sweaty handshake, he slumped in the chair, muttering something about the traffic under his breath. He couldn’t have seemed less interested to be there if he tried.

However, he had a perfect CV, so I set about trying to get some sense out of him. Any reply that I did get was delivered in a monotonous voice, and he kept looking at his watch. Something wasn’t right, but I continued the interview for the next hour, getting increasingly frustrated by the lack of communication.

I did the worst thing possible. I made the assumption that he didn’t have the right personality for the company that I was recruiting for. I didn’t think to dig further into the circumstances of his mood, and I switched off, discounting him from any of my possible searches. I judged him based on minimal evidence, but with absolute certainty.

If it hadn’t been for his email the next day apologizing and telling me about his serious personal problems that day, I would have been none the wiser.

Job interview candidates

I felt like an idiot. Why didn’t I care enough to dig that little bit deeper under the surface? It was obvious that something wasn’t quite right, but why did I judge him without understanding the bigger picture?

We do this all the time - making snap judgments based on someone’s appearance, gender, nationality, religion, etc. The media fuels this suspicion, which all too easily can turn to hatred. Walking down the street, every Muslim is a terrorist, every youth in a hoodie is a drug dealer. There are so many people, who don’t get their fair chance in life because they are a victim of these unfair prejudices.

If Shrek walked into my interview room, I’d like to think that I would hear him out. Not sure what sort of an Engineer he would make, but you never know unless you dig a little deeper….

Written by Lee Narraway and Edited by Paul Drury

If you would like to discuss this then please get in touch with me and leave your comments:

Lee Narraway

Phone: 01925 747 712 Email: lnarraway@procorerec.com LinkedIn: linkedin.com/in/leenarraway/ Website: www.procorerec.com/