Introduction
Quoted in the Sunday Times recently, Jo Sellick of the Sellick Partnership based in the North West “Recruitment is all about relationships and delivering. The problem with recruitment is that there are a lot of people in it who aren’t particularly good at it”.
CAST agree but would add that recruitment is also about caring. During the recession some recruiters have become desperate as the sales lead process have not worked. Some of the companies that have survived are those who have consistently provided a good service.
During the down turn there is evidence of desperation within legal recruiters particularly from telephone agencies outside the area. Sloppy recruitment standards with the advertisement of jobs that do not exist, the copying of jobs that appear on law firms websites and then claiming they have the instruction and the sending of CVs without the candidates knowledge.
It is clear that the agencies that ring round for jobs are not alone and you see the same job appear on email alerts from five different sources. This cheapens the jobs and of causes arguments with the law firm and the same CV arrives from a number of sources.
Everything you advise, everything you recommend has to be based on the fact you actually and genuinely care about the clients firm. Even if the recruitment consultant does not achieve a placement as a result, their credibility in the long run will generate significantly more clients.
Background
During mid 2009, CAST decided to respond to the challenge being posed by the market on the topic of measuring the key issues which firms are increasingly involved with – the recruitment business.
75 senior professionals took part in the research, which was conducted through a carefully targeted on line questionnaire. The main professions involved in the research were law, accountancy, property and manufacturing.
This survey provides an insight to help senior management have a better understanding of the industry and develop a better rate of return on their investment as well identifying best practices in the market.
Experience of recruitment companies
Like all industry sectors there are good and bad everywhere, but the recruitment industry does appear to be consistent.
There are a number of examples of quality service and excellent business relationships, but the general experience is not as positive as it should be.
Research has found it is mainly down to the use of personal information, the lack of a business relationship, sector knowledge, lack of credibility and above all honesty, as follows:
Use of CVs
“Some times the level of candidates put forward wasn’t that good at all and bore little resemblance to the requirements. It was like someone was on the books and put them forward for any vaguely applicable position” – Rebecca Wassell Director Of HR – Messier Dowty
A big issue raised with recruitment consultants, raised by 48% of those questioned, was the sending of unsuitable CVs, which do not remotely match the requirements of the firm.
27% of those questioned have experience of recruitment consultants using CVs as a marketing tool. Sending a CV to create a conversation with the prospect, with the candidate (if they exist) having no knowledge of this happening. This is not only common bad practice, it is illegal.
“Recruitment agencies tend to forward on CVs for our consideration regardless of whether they are suitable or not” – Associate at Gardiner & Theobald
This misuse fuels the opinion that all recruitment consultants do is just collate CVs from a database and conduct a ring round. This has resulted in resentment in terms of cost.
“Until I met CAST I vowed never to use recruitment agencies again. Consultants were not really interested in what I was looking for, they just tried to shoe horn me in to the vacancies that they were working on. They amended my CV without permission and made huge mistakes” – Nickie Harding, Principle, Hancocks Legal
Cost
As expected cost is a major issue but a number clarified the statement further to define the issue to be value for money.
The lack of transparency causes resentment, as it is perceived by a number of firms that is just a case of ringing round people or searching CVs on their database. Once they hit lucky they send the CV and wait for the cheque. Where value was proved cost was not the most important factor.
Done properly considerable time and effort should go into research and then meeting possible candidates. This is costly in terms of time, which is why some recruitment consultants cut this out by conducting a telephone call bombardment campaign.
Relationships
A surprisingly high figure of 65% of respondents stated that recruitment consultants would not meet with them to go through a potential instruction in detail. The majority are happy with a telephone conversation and a job specification sent via email.
“The agencies that have worked well for me are those that pays attention to what my firm is looking for. I do not wish to be bombarded with inappropriate and, in many cases, unsolicited CVs. When I do receive an appropriate CV, I should not have to go back to the agency with numerous questions because the information is inadequate. Most of the agencies I deal with send in full CVs that require few, or in most cases no, follow up.” – Sharon Xenophontos Weil Golshal & Manges LLP
A number of those that do meet make the cardinal error of assuming what the requirements are after a brief telephone conversation.
Before they even listen to what the firm requires they have a short list of CVs at the ready. It could be deemed as proactive, but they miss the point that the only reason for the meeting is to define what the firm requires in finite detail to enable them to develop a recruitment strategy.
“It is vital that the recruiter spends as long as it takes to learn about the client and to establish exactly what is required. Often it is not the same as what the client thinks they need.”- Barrie Sharpe, of Pollard & Ambler a sales trainer and former owner of search and selection practice
The experience of a lot of firms is that High Street agencies suffer high turnover of staff due to unrealistic targets, poor recruitment strategies, poor basic pay and a hire and fire attitude. There are exceptions but this, on top of senior managers focussing on sales call targets, assists in giving them a bad name.
Evidence suggests that it can take 2 years to build the trust but if they use high street consultants they tend to last no more than a year at best.
This trust is transferable to other recruitment firms if the consultant moves on, but clearly there are legal issues concerning these actions, but there are indications that some think it is worth the risk.
Sector experience
It is apparent the recruitment consultant needs to have a knowledge and some experience within a respective sector. In some cases this is lacking especially in the more generalist high street agencies. Some firms believe it would be better for all concerned if the recruitment consultant admitted limited knowledge to allow the client to give them an enhanced in depth briefing.
“Someone who understands your business and the type of role you are after. In many ways my preference is for those that know the company versus specialists in a field. I think it is important – that the person delivers and sees the role out for a couple of years” – Steve Hooker of Burton’s Foods and board member of the Association of MBAs
Strategic
Research strongly suggests that some firms exacerbate the situation then blame the recruitment consultants when things do not turn out the way it was planned.
Some firms do not use their supplier in a strategic way. The use of recruitment consultants in the majority of cases is very tactical at best and at worst last minute and rushed.
The main reason for this appears to be the issues already highlighted and because of this recruitment consultants are seen as a last resort. The firm may have already tried unsuccessfully to recruit someone and then given the instruction to the recruitment consultant when things are getting desperate.
Examples of a tactical approach include:
Being too busy to meet the recruitment consultant and ask the agent to just send some CVs that they may have on their database. This gives the agency license to allow you to become a CV shifter.
Sending emails containing one paragraph to 10 recruitment consultants and expecting to find the right person.
Meeting with each recruitment consultant telling them they are the only people involved only to find the firm has told 10 others the same. This is no basis for a trusting relationship and the indications are that the better recruitment consultants will not bother.
They give one of the biggest issues that affects the firms growth to a junior member of staff.
“Single biggest issue is trust. I have little or no confidence in 99% of the market place who purport to be recruitment consultants” Bernard Savage – Size 10 ½ Boots
Honesty and trustworthiness
“They must take time to develop trust through open/honest and regular communication with the customer/account” Nick Devereux, Director- Eli Lilly
A major concern that is raised here is that there is a lack of trust and honesty, with unbelievably common instances of poaching from the firm they are working for.
In the majority of cases it is deemed that advice about a candidate or salary is tarnished by desires other than the good of the client – the consultants’ commission.
It is perceived that it is good practice for recruitment consultants to send the CV in an agreed format for ease in the selection process. Research has highlighted that this encourages them to rewrite them with a view to encourage the firm to see the applicant.
Annoyance
52% of respondent’s experience of recruitment companies is one of annoyance. Constant telephone calls from consultants that do not know, understand or indeed care about their needs. A lot of the consultants appeared to be reading from a script and when questions are asked they stumble.
Why do recruitment companies do this constant ring round? Simply because it works! It is a numbers game if 50 consultants ring round and a 40% success rate is an acceptable level of business. They are targeted on the number of decision makers, CV sent and conversations with candidates.
Some firms that suddenly have a vacancy give it to the first recruitment consultant who rings up. It’s not tactical or strategic. It is reactive and results in even more telephone calls.
Credibility and arrogance
A lack of credibility, knowledge and experience within the industry is commonplace. They are perceived as seeking the quick buck with a high turnover of staff within the consultancies.
Successful consultants that are making the money become arrogant and cocksure resulting in them in getting bigger and cutting even more corners. They like to talk about themselves and their success.
Arrogance is enhanced as some recruitment consultants who work for large firms decide they can do it for themselves. They take the business with them, which is good for the client, but breeds distrust. If they can do this to a firm that pays their mortgage it is likely they will approach one of your team if they think they can make money.
There is some scepticism with head hunters owing to a lack of research due to of course the practice manager putting pressure to make the telephone calls.
There are numerous stories of people being approached by a head hunter who state that had heard of their reputation in the industry and they had a position of interest. This is despite only having worked in that firm or industry for 3 months.
Critical Success Factors
Our research suggests the critical success factors when working with a recruitment consultant are as follows:
The building a strategic relationship
“Strength of the one to one relationship. Is the person going to deliver for me? It is about care. Does this person care? Do they genuinely care about my business?” – Bernard Savage Size 10½ Boots
Choose a recruitment consultant that genuinely cares about your business. They do not see you as prey but they appreciate your business and really want to help contribute to your firms success.
There are some examples of recruitment consultants involved in board meetings and part of the development strategy of the firm.
When there is a need for new blood within a business plan, inform the recruitment consultant of the likely needs for that year. This will allow them to prepare and set achievable goals. Perhaps retain them on a monthly basis, the cost of which is deducted from the placements – good cash flow for both parties.
Set goals with the recruitment consultant for the year and agree key milestones and review dates. Agree fees for the year; perhaps agree a discount when a certain amount of positions are fulfilled.
Firms need to meet their recruitment consultant on a regular basis and see them at the events they attend. This visibility shows that their reputation is very important to them.
Meeting the recruitment consultant every time there is a new role is essential, but it needs to be more than a chat. Expect the meeting to be structured with questions designed to pull out the hard and soft skills and end up with a list of “must” and “should haves”.
“The usual I’m sure – Knowing our business, knowing how we work, knowing what we’re looking for” – Gareth Osborne – Head of Marketing, Eversheds LLP
Trust and honesty works both ways as firms that do not take calls from recruitment consultant and ignore speculative CVs tend to have a better relationship and ultimately more success in finding the right people for their organisation.
There are numerous examples of recruitment consultants poaching staff and offering firms suitable candidates only to find that they have also been offered to their competitors. If you have developed a relationship with your recruitment consultant this is less likely to happen.
If you use more than one recruitment consultant tell them so they can allocate the correct resources. Clearly if a firm utilise the services of a recruitment consultant on an exclusive basis they should expect maximum resources.
Sector Experience
Evidence suggests that the most successful relationships occurred if the recruitment consultant understands a sector or firm to the point that they can hold a conversation and understand the terminology.
Value for money
From day one expect the recruitment consultant to confirm rates, rebate criteria and the breakdown of the type of services they offer. Recruitment is not easy; if it was the firms would have no need for a third party and delays often take place within a tight labour market.
A proper recruitment process will remove the common misconception that all recruitment consultants do is farm CVs. A good recruitment consultant must have a defined and measurable recruitment process. In our opinion the key to this is that each candidate put forward by the recruitment consultant has been given a first interview, is briefed and is aware of the opportunity.
Customer service
Basic customer service is essential. Put simply a recruitment consultant should return calls promptly, ensure that every conversation is not a sales pitch, the CVs sent are in line with the agreed “must have” and “should have” lists and meetings are conducted even if there are no imminent instructions. All parties must agree deadlines and stick to them and as discussed, meet at every instruction.
The retained recruitment consultant should not work with your competitors.
Definitions
“Estate agency but when you do meet someone with the credibility they stand out – 3 in a dozen” – Bernard Savage Size 10 ½ Boots
Essentially whatever the title of the recruitment consultant, they do the same thing.
They may go about it differently and the standards of quality vary greatly but their task is to find the right person for a client. Terminology is an ingredient of every industry and our research shows there is general confusion in what recruitment consultants do. We have attempted to define the market.
A recruitment consultant/agency is a firm that focus on indirect approaches to job seeking candidates. Tend to be generalist.
A head hunter is a firm instructed after research to conduct a direct approach to passive candidates. Tends to be specialist in terms of roles or sector.
A search firm is instructed to attract indirect and passive candidates, depending on the level of the role. Tends to be specialist in terms of roles or sector.
A resourcer – used by a head hunter or search firm; they can be independent and they find the names of suitable people and should gain some information on them.
An instruction – a formal request from a firm to find a suitable person after a meeting to determine needs.
“My experiences lead me to believe there is little difference: they’re still essentially hit-and-miss recruitment agencies just with flashier branding, pouncier titles and substantially higher fees!
I’m yet to be given a solid argument otherwise.” – Gareth Pezzack – Eversheds
Conclusion
From our study and years of working with clients in finding the right people and previously pulling our hair out within big sales obsessed recruitment firms, we distill the following conclusions about these mission critical issues.
The recruitment world has changed and if nothing else happens during the recession it will weed out the get rich quick brigade that has given our industry a bad name.
Like every industry there is good and bad everywhere in every aspect of the recruitment industry. From people supplying cockle pickers in Morecambe bay to head hunters placing partners in a top London firm the recruitment principles are very much the same; doing your research, finding the right people, briefing them, persuading them to join you and ensuring it is the right job for them.
The money involved and the age profile of some recruitment consultants has lead some of them chasing the dollar, cutting corners and showing the arrogance of success, which has clouded the recruitment process. The first stage of the recruitment process that is skipped is the research and the face-to-face meeting, relying heavily on telephone conversations.
The large recruitment firms have poured oil onto the fire by being obsessed with the wrong things. Some are concerned with sales levels and measure success in the number of CVs sent or sales calls made and approaches to candidates.
This with their desire to employ sales people in recruitment positions clearly drives down quality, but obviously gets the numbers on the board. They will deny it but we have seen this at boardroom level, where serious service issues were of minor concern when compared to the number of sales calls each area were achieving.
Creating excellence in recruitment is required. It starts with leadership, having the right people who have the skills and capabilities to develop and communicate a vision, provide a structure and guidance and deliver a robust recruitment service.
We hope you got something out of this report. We plan to conduct further research over the next few months. If you want to contribute, please get in touch.
Graeme.dixon@aimstrategic.com Professional Services Director of www.aimstrategic.com, one of the UK’s premier Competitive Intelligence practitioners and Director of www.Cast:csi.co.uk, a Professional Recruitment company specialising in MBA level placements.
Midlands Chairman of the Association of MBAs, Graeme has nearly 10 years Military Intelligence and 14 years Professional Recruitment and Headhunting experience.
Want to know more about Competitive Intelligence please see www.aimstrategic.com or come along to our event on 9th June 2010 – www.aimstrategic.com/ciworkshop
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