09 Jun RTT – Recruitment Supplier Value: Getting More For Your Money
The majority of businesses will have a degree of reliance on recruitment suppliers. Whether it’s down to drivers relating to time, quality or unique skills, most companies will have external agencies tucked away in their recruitment arsenal to fill certain positions. However, as we’re all aware, using a recruitment supplier inevitably comes with a price tag.
For businesses with a chunky agency spend, it’s understandably very important to ensure maximum value is being realised from all recruitment suppliers. What businesses want to avoid is a vending machine style of relationship whereby you get very little value back outside of the product you are ‘buying’. After all, if Recruiters are badging themselves as ‘Consultants’, then they absolutely should be living up to their job titles and providing good value-add!
These are the thoughts and takeaways from the latest Resourcing Think Tank (RTT) held on Tuesday 9th May 2017 hosted by Legal & General Investment Management, titled ‘Recruitment Supplier Value: Getting more for your money’
The following summary has been prepared to reflect a segment of the discussion held amongst senior HR and Recruitment professionals from leading national and international businesses. Specific company details, experiences and examples have been omitted from this summary as all discussions are held under ‘Chatham House Rules’.
So what do we deem as a value-add and how should it enhance our recruitment processes?
When utilising a provider from outside your own organisation, it is important that the chosen recruiter genuinely acts as an extension to your own company. This will include having indepth knowledge of your organisation, associated functions, internal culture and the role, introducing and selling your organisation with the understanding and passion of an employee themselves.
Working with the agency to create an agency pack about the organisation and the role will bring the job to life and enhance their ability to deliver better, faster results.
Building true supplier relationships
Sceptical about getting the most from your recruiter? Utilising a recruitment supplier as if ordering supplies and providing a list of demands does not lay the foundation for a successful relationship. We must remember this is a two way process and there must be something in it for both sides.
A recruiter and its business is no different to your own, the opportunity has to be commercially appealing.
The easy safety net is to engage a number of agencies assuming it will multiply the number of quality CVs submitted, but what do you get back? Often it becomes a race to beat competition rather than time sourcing the best talent. Ask yourself, when a supplier has a gold star candidate, will they prefer to send them to a client who works with them exclusively, is open to have a discussion about the candidate and works to agreed interview slots and processes, or to a client who asks for multiple agencies to submit CVs through a portal with no personal interaction?
When do we engage a supplier to get the best value?
Do you want the best talent available now or the best talent in the market?
Engaging a supplier at the eleventh hour when your interview process is already happening just to see if there is anyone else worth throwing in the mix limits your supplier to time constraints and prevents them focussing on who is available now. With a little more insight, and involving your supplier from the initial talent mapping stage you will ensure value add by giving them time to engage with the best talent out there. It’s about creating an open honest dialogue, such as…
‘we are resourcing using our own sources however I may need your involvement in a couple of weeks, can you keep an eye out for….’
Helping mature and evolve the proposition agencies offer
There are clear benefits to partnering with an agency on a long-term basis; ensuring both parties build a solid relationship and understanding will inevitably go a long way to reducing the recruitment timeframes, and result in better candidates.
So are you getting value for money?
Cost per hire is the buzz expression but how is it measured? Great, you feel you have the best rate you can secure from an agency but what do you get for that service? Are the candidates staying in your organisation longer term? Are you aware of what the cost of a ‘bad hire’ amounts to in your business?
Consulting should mean just that. How hard is it to match a CV to a job spec? So what else can you benefit from? Some of the key areas we can really gain value add include:
- Salary Benchmarking
- Job Grading
- Market Mapping
- Market Data
- Information Sharing (Think Tanks and Associated Blogs)