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June 2009

Best Practice In Managing Your Recruitment Firms

“It’s easy to engage a recruiting organisation to help with hiring staff in any economy. When you’re not hiring however, it can be a great time to look at the relationships you have in place, and position them for renewed growth. Making sure these relationships are up to the mark depends on knowing what to expect from your recruitment partner.”

There are many services we take for granted and use every day…accountants, lawyers, recruiters.  We sign agreements with these professional service providers, and expect a certain level of delivery in return.  Commonly, we get what we want from these businesses, but can we ever feel totally assured that we have received everything that we should in terms of service, relationship and value add?  As I write this article, I’m thinking back over a number of “professional” relationships that I’ve been involved in, and questioning exactly what I paid for and what should just be part of the service.

The problem is one of expectation.  We don’t always know what to expect, and therefore managing a provider to meet this expectation is clearly difficult.  Providers also tend to keep their “tricks of the trade” just that, within the “trade”…they rarely give tips to end users as to exactly how to maximise the service that they provide.  This article is an attempt to redress this balance, and is intended to give some thoughts on how to get the most from a recruitment company.

1. Expect More
   You are paying for a professional service from a business to business provider.  Learn to expect more than a CV delivery function.  Those organisations delivering this level of service should be the exception to the rule, not commonplace.  If your provider seems not to be providing you with a fully managed, professional business to business solution, then you may well have the wrong provider.

2. Work With A Company
   Many recruitment organisations have a relationship between a procurement person, a hiring manager or a human resources administrator and their recruitment consultant.  That’s it.  Nothing more.  The relationship is based upon one or two individuals.  Expect to have a relationship at all levels of your organisation.  Sure, the consultant can still maintain a relationship at a working level with members of your company.  That consultant’s manager however should have a relationship at management level within your company, and there should be a board level relationship too.  This fosters understanding at all levels of your business, and a relationship that is stronger and more beneficial for both parties than would otherwise exist.

3. Don’t Settle For “Hit and Run”
   Unless things have changed very rapidly, it’s fair to assume that there is a global economic slowdown.  This, in some countries, verges either on, or over the recession line.  With this gloom In the air, it is fair to assume that not all organisations are hiring.  Look for those companies that take a real interest in a long-term relationship.  Watch for the signs – a provider that wants to talk to you, if you’re hiring or not.  One that will provide you with market insight, and advice, and one that wants your continued business, not now but in years to come.  The market is tight for recruiters too, and many are resorting to hit-and-run tactics.  A quick deal, no real interest in the longer-term view and certainly no value add.

4. Two-Way Service Level Agreements
   The clue is in the name, “Agreements”.  These should not be impositions, but reasonable expectations of service that are agreed with a trusted supplier.  The recruitment consultancy will be as keen as you are to supply good quality services and be paid.  If they are advising you that service level expectations are unreasonable, it is probably for a very good reason.

5. Jointly Account Plan
   A great sign that your recruiting organisation is in it “for the long term”, and is open, honest and trustworthy.  A good consultancy shouldn’t be ashamed of telling you that they want to meet to discuss an account plan for your business.  It’s a good sign that an organisation wants more of your business, for a long time to come, and wants you to be a part of that process.  A good consultancy will work hard to make sure that these account plans succeed.

6. Implant If Possible
   Is it the wooden horse of Troy if your agency wants people in your office ?  Not at all.  It is a sign that they are willing to invest time and effort in furthering a relationship which is based on trust, and going the extra mile.  This should be welcomed with open arms.  If any of your other suppliers offered a free resource to help the service provided to your business, you would jump at the chance.  That’s what an on-site presence, or “Implant” is.  If there is enough demand to warrant either a part-time, or full-time presence in your office, seize the opportunity.

7. Any Colour As Long As It’s Black
   OK, so Henry Ford took specialisation a little too far – one car in one colour.  But it was an amazing success.  Learn from that, but not to the same extent !  Look for a recruiter that stays true to some core values, even if it is entrepreneurial and diversifies in other ways.  A finance recruiter in Western Europe might have never worked in Central Europe, but entering that market with a proven track record and a true blood-line of service keeps the specialism alive.  Avoid those companies that are willing to jump whole degrees of separation from their core business, geography and background in a rush to service your business.

8. Don’t Tell, Demonstrate
   Really simple – you wouldn’t hire a new member of staff that said they were a great software developer.  You’d want proof.  You would want your recruiter to show references, technical test results and you’d want a full, competency-based interview to demonstrate that the person could do the job.  Do the same with your provider.  Look for where they have managed similar roles before, on a similar scale, ideally in a related industry.  In this way, you know your choice of a recruitment partner is the right one.

9. “How”, Not “How Much” ?
   Price has to come into any purchasing decision – this is the real world, after all.  Make sure that this part of your decision is managed properly.  Look for how the charge on your business in levied.  If there is an on-site presence, or “implant”, do you pay for the privilege?  What does the rebate period look like?  How do credit terms map to your company’s processes?  Look for flexibility and a charging model that maps into how your organisation works.  Look for opportunities for gain-share and risk-share.  These are signs of a business that wants to work with you in the long term, and add value, without adding cost.

10. Try Before You Buy
    Back to the Henry Ford analogy.  You wouldn’t buy a car you hadn’t driven, or indeed pay for a test drive.   In Poland, many consultancies still believe in up-front fees.  Surely, you’re paying for that test-drive ?  Look for a partner that takes some risk in finding you a great person to hire before the bill lands on your desk.  Be prepared however.  A company believing in a strong relationship and high quality will want solid, quick feedback on a resume – after all, they are investing time in your business, at their cost and risk.

Many of these might seem like common sense, but the phrase “the more original the discovery, the more obvious it seems afterwards” applies.  This set of tips comes of the back of a detailed survey programme undertaken across many of Modis’ top clients.  We think they can and do get the best from us as a professional recruiter…what do you think ?