Outsourcing Recruitment
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bipin mayekar
Jan 24, 2007, 10:34:31 AM1/24/07
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| Outsoursing Recruitment Recruitment refers to the process of finding possible candidates for a job or function, undertaken by recruiters. It may be undertaken by an employment agency or a member of staff at the business or organization looking for recruits. Advertising is commonly part of the recruiting process, and can occur through several means: through newspapers, using newspaper dedicated to job advertisement, through professional publication, using advertisements placed in windows, through a job center, through campus interviews, etc. Suitability for a
job is typically assessed by looking for skills, e.g. communication skills, typing skills, computer skills. Evidence for skills required for a job may be provided in the form of qualifications (educational or professional), experience in a job requiring the relevant skills or the testimony of references. Employment agencies may also give computerized tests to assess an individual's "off-hand" knowledge of software packages or typing skills. At more basic level written tests may be given to assess numeracy and literacy. A candidate may also be assessed on the basis of an interview. Third party recruitment firms are usually distinguished by the method in which they bill a company. Outside recruitment agencies charge a placement fee when the candidate they recruited has accepted a job with the company that has agreed to pay the fee. Fees of these agencies generally range from a straight contingency fee to a fully retained service,
which is similar to placing an attorney on retainer. All recruitment agencies are defined by the placement of a candidate to a particular job within a company. The recruitment firms Processes focus on getting across to the right skill set in the minimum time possible. This involves creation and maintenance of a database that comes with an in-depth understanding of technology…thereby resulting in a wide array of clearly classified skill sets which makes the search and find operations that much more quicker. Benefits Of Outsourcing Recruitment Process
A recruitment consultant is responsible for helping employer clients to recruit staff for job vacancies. These vacancies can be permanent or temporary roles, and can range from junior level staff to managers and directors. Recruitment consultants develop an understanding of their client's requirements, and then identify potential staff (candidates) through existing contacts or by advertising roles/headhunting (executive search). They assess candidates' skills through interviews, tests and background checks, and then make recommendations to their client. Consultants also provide advice to both
clients and candidates on salary levels, training requirements and career opportunities. Developing solid relationships with clients is integral to the role. Organizations today realize that human expertise is critical for the success of any enterprise. The main objective for out sourcing recruitment activities, not merely to cut costs, but to gain a competitive edge and focus on core strengths. How to recruit the recruiter? It’s a crisis situation for your organization. Reimbursement is shrinking, the staff shortage has forced you to increase your use of higher cost agency staff and your Chief Human Resources officer just announced his intention to retire in six weeks. There is no one inside to promote, and the market for high-caliber human resources executives, with the experience you require, is somewhat limited.
Yet you want to be an employer of choice in your market, and attracting and retaining first-class executives is the best way to give your organization a competitive edge. So how do you find the right people to fill critical openings in your organization? The obvious answer is to turn to an executive search firm to recruit a qualified outside candidate. But with more than 15,000 such firms vying for your business, how can you make an informed – and more importantly, critical – decision as to which firm to hire, especially when your choice today will have such a momentous impact on the future of your organization tomorrow? Knowledge, as they say, is power. So before starting your search for a search firm, it’s important to understand the two specific categories of executive search procedures: retained and contingency.
The Retained Firm What It Is? A retained executive search firm functions in the role of a consultant to its client organization, systematically recruiting and evaluating a hand-selected list of potential candidates, most of whom are not currently seeking new employment opportunities. The Retained Search Consultant works in partnership with the client as an extension of the client’s own team. The goal of the retained search firm is to establish a personal, one-on-one relationship with its client, focusing on client satisfaction and assuring the “right fit” between the client and the newly-hired executive. Therefore, the Retained Consultant conducts fresh, targeted research to locate high-caliber candidates whose backgrounds and experience mesh with the needs of the client organization.
In addition, retained search firms often act as agents between the client and the new executive during compensation negotiations and “breaking in” periods. Procedure Vital to the retained search is the initial meeting with the client organization’s officials and other key personnel in order to thoroughly understand the company’s needs, direction and corporate culture. At this time, the Retained Consultant draws up a position description which details the specific qualifications of the ideal candidate, the scope of his or her responsibilities, and any other essential criteria. After scrutinizing proprietary databases, fresh research, and other industry sources, the Retained Consultant next narrows down a select target list of ideal candidates, who are then pre-screened by
telephone. A face-to-face interview follows, after which the candidate’s references and background are rigorously checked. From this targeted list the client now selects individuals to interview at the client location. The Retained Consultant assists in scheduling these interviews and acts as an advisor in the final selection process, as well as negotiating an offer of employment to the selected candidate. Billing Industry standards dictate a fee for the retained search firm that is generally one-third of the successful candidate’s first year’s annual salary. This fee is normally billed over the course of the search assignment, with a retainer of one-third of the total at the outset of the search. Expenses, such as research, telephone, and travel, are billed separately. The Contingency Firm What It Is? The contingency search firm does not usually work with its clients on an exclusive basis. Since most contingency firms are actively vying with competing search firms to provide appropriate candidates, they work quickly to submit to their clients numerous resumes of as many candidates as possible. Their first client is sometimes the candidate and not the employer. Since contingency firms focus primarily on candidates actively seeking new employment, many employers will contract with several contingency firms simultaneously in order to increase the number of potential candidates. Unless a candidate is successfully placed, the Contingency Recruiter does not collect a fee. Therefore the search phase lasts only until a suitable selection of prospective candidates can be found.
Procedure The contingency firm rarely meets directly with the employer. Instead, the Contingency Recruiter takes notes from telephone conversations in order to develop a general outline of the unfilled position. Sometimes their information about the position is derived from print advertisements or electronic postings. Once the candidate qualifications have been determined, the recruiter will search through his/her files for resumes of individuals who may fit the position. These documents are then sent to the employer. Because the employer does not pay incurred expenses, the Contingency Recruiter does not personally interview the candidate. If the employer has an interest in a particular candidate, the recruiter will schedule an interview in person or by telephone. Reference checking, travel
scheduling, and salary negotiations are the responsibility of the employer. Billing Contingency firms receive payment only if the candidate is hired. Normal fees range from 20-35% of the successful candidate’s first year’s guaranteed compensation. Advantages and Disadvantages Now, which type of search firm should you hire? The best approach is to consider the advantages and disadvantages of each. Retained Firm Advantages:
Contingency Firm Advantages:
Contingency Firm Disadvantages:
Crisis Management Ultimately, working with a search firm can be an exceptionally beneficial solution to solving the succession planning and recruiting challenges of your organization. By assessing the methodologies as well as the pros
and cons of these two types of search firms, you can determine which best suits your specific needs and goals. So when that crisis hits, all you have to do is pick up the phone. (The writer Srinivasan S, Manager-Human Resource, Tandem Consulting Pvt Ltd, can be contacted at srini...@tandemconsulting.co.in ) |
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