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Why Use a Recruiter

There are many different reasons as to why companies use recruiting or staffing firms. Below are some of the reasons:

  • Workload and Time Constraints: The human

           resources department is oftentimes too small to handle

           managing their department as well as managing a job

           search. Recruiting firms will concentrate on the job

           search and thus deliver qualified candidates

           faster.                   

  • Recruiters Expertise:
    • Hiring: Recruiters have more experience in doing

                   the advertising and picking candidates from

                   resumes. They will also be able to spend time

                   interviewing candidates and picking the right

                   person for the job.

    • Industry: They offer objective opinions on the

                   industry for any job opening. Recruiters easily

                   obtain salary information for positions.

    • Specialized Positions: Companies can depend

                   on a recruiter's expertise to qualify the proper

                   candidates. This is helpful when no one internally

                   knows what they're looking for in candidates.

  • Company has Multiple Locations: If the Human

           Resources Department is in a different location than  

           where hiring is needed, a recruiter close by will help

           with the hiring needs.

  • Confidentiality Issues: When a firm needs to replace

           a person, recruiters keep this information confidential

           from other employees within the company.

  • Corporate "Raiding": Recruiters who are looking for

           executive candidates will know people already

           employed at other companies. Clients will sometimes

           request particular people from other firms. This is

           extremely difficult for internal HR Departments to do.

  • Hiring the Right Candidate: The most important thing

           for a company is to hire the right person for the job.

           Hiring the wrong person, especially at an executive

           level, can be extremely expensive to rectify.

 

Selecting a Recruiter
Once a company has decided to use a recruiter, the next step is knowing which one to hire. The position they need to fill should coordinate with the type of firm they want. When a firm calls itself an 'agency', then that usually suggests they focus on middle management positions whereas if they refer themselves as an 'executive search firm' then they focus on upper-management.

 

In order to find the right recruiter to fit the company's needs, there is some information they should get before giving details of the search:

  • Payment type: Retainer or contingency basis
  • Fee Rates
  • Additional Expenses
  • Connections: Local, National or International (depending

           on the level of the position) and what are they

 

Credibility, trust and integrity are important in choosing the right recruiter. Clients should confirm who their primary contact will be as many recruiting firms send a marketing individual for the first meeting and they may not be the person doing the search.

 

Things to look for in a recruiter are:

  • Degree in the Industry: This is a good indicator of their credibility. Some other designations are:
    • Canadian Human Resource Professional (CHRP, pronounced ChiRP
    • CMC (Certified Management Consultant)
    • CPC (Certified Personnel Consultant)
  • Background in the industry. This is an alternative to

           the designations listed above. Correct use of the jargon

           used indicates the knowledge.

  • References: There should be some well documented

           success stories

 

Overall, companies want to hire recruiters that give them confidence that they will find the right person for the job.

 

The Recruiting Process

 

Senior Positions
Retainer fee recruiters offer the most personalized service. They find out everything they need to know about the company and the position(s) being offered to candidates by helping to prepare the job description and understanding the corporate culture.

 

Other items to discuss are fees beyond the normal percentage so they know what to expect. This would include any additional fees for advertising, long distance, extending the search, etc. The timetable for the search is predetermined by the negotiations and there are three elements that go into these searches:

 

  1. The companies urgency
  2. Complex interviewing process
  3. Uniqueness of the candidate

 

Sometimes a candidate is lost to the length of time it takes to interview all of the candidates, but typically the duration is three to six months.

 

There are items that a company is guaranteed when they hire a recruiter. Recruiters can guarantee a candidate for 30 days up to one year. Should it not work out within the timeframe, the recruiter will find a replacement free if the person just picks up and leaves or they are proven to be wrongfully terminated.

 

Once everything is agreed upon, the recruiter goes to work gathering resumes. They use multiple venues for this, from their network to advertisements. They will conduct the first interviews to bring to the company where they will interview the candidates. The recruiter and company will determine the candidate to get the job. Once done, the recruiter will follow-up with the candidate and the company to ensure they are working well together.

 

The relationship with a retainer recruiter is an exclusive one, and companies will pay the fees whether they hire someone or not.

 

Middle Management Positions 
Most recruiters for middle management work on a contingency fee and will get a percent of the first year's expected salary for full-time positions. This means most searches will not be exclusive, and sometimes several agencies will compete for one person.

 

The recruiter will call the company to ascertain the required skills for the position, requesting a written profile, and the company's culture. The fees to be paid to the recruiter are also negotiated at this time.

 

They will then work quickly and collect resumes by placing an ad or contacting candidates on file. Once they have a list, they'll interview the candidates. The interview process isn't as in depth as with executive retainer recruiters. They want to get several resumes to the company before a competing recruiter does and the job is filled. They will forward resumes, with the names and addresses blocked out, and the recruiter sets up meetings for the candidate and company to meet.

 

Once a company decides on a candidate, the recruiter handles the offer. Upon acceptance and they are hired, the fees are due to the recruiter.

 

The timetable for a middle-management search is much shorter than that of an executive search, and can be as short as six weeks. This can of course take longer depending on what's happening with the company internally as well as the candidate.

 

There are three reasons a shortage-driven labor market works in favor of staffing

firms: increased willingness to innovate, super- recruiting and cost control.

£Increased willingness to innovate. In times of labor shortage, hiring organizations are forced to take labor on

more varied terms than accustomed, including part-time, contract and temporary help.

 

£Super-recruiting. In times of labor shortage, hiring organizations turn to the experts – staffing firms – to supplement

other recruiting methods both by providing workers on a temporary or temp-to-perm basis and by providing

permanent placement services.

 

£Cost control. In times of labor shortage, while temporary workers themselves may be more expensive, their use

can help contain otherwise increased cost of permanent workers.

In particular, in a shortage a company can only attract additional permanent workers by offering higher compensation.

But by offering more compensation to new workers, it will also be under pressure to increase the compensation

of existing workers. This is particularly the case in professions with a large unionized membership, such as

nursing.

 

On the other hand, higher-paid temporary workers can be used to accommodate an increase in demand while not

increasing the overall wage level of a permanent workforce, effectively creating a two-tiered system of wages. This

is possible because most permanent workers prefer permanent work and will not immediately jump ship to enter

the higher-paid second tier of temporary help.

 

USE

However, buyers have at best a like/hate relationship with staffing suppliers.

Despite the logic of using temporary help, healthcare buyers employ it only reluctantly. On the plus side, temporary workers give

them the flexibility to accommodate variable or unpredictable workloads and rapid growth in their organizations, and enable

them to find quality people (though, notably, even with regard to these stated advantages they are less convinced than staffing

buyers as a whole).

 

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