For our convenience we will name the players on the recruitment market as follows:
- Hiring Managers (or else end client/the buyer) – this is the person who has requested a human resource for a specific position with a given profile
- Recruitment Agency (or else the agency/the seller) – this is the third party company who is hired or committed to deploy a human resource on the client side
- The Consultant (or else the precious commodity 🙂 ) – is the traded human capital by the seller for the purposes of the buyer.
As hiring manager here it is how the other players on recruitment market would eat your time:
Agency calls you as prospect
Every recruitment agency has a large data base with all the “buyers” of the recruitment market. And thus if you are in a managerial position responsible for building up a team around you, then you will get hunted by all the recruiters who would die to become your sellers. And so you will be constantly called and asked if there is any openings in your team or eventually around your department.
Agency calls for proposing you a candidate
Lets say you already bought a consultant from a specific agency and you made the first connection with that recruitment company. You will receive several other calls on regular basis when a new candidate will be introduced to you. It can be that you don’t really need to buy someone but because a “good catch” is out there available might make you change your minds and find something suitable to them or not. However any agency which already sold you a consultant will keep sticking around for selling more
Agency calls you as reference for a candidate you hired
Because the recruitment agencies tries very hard to prove their added value in this process some of them would not proceed with the candidates unless a set of references are provided. And of course the references are again their past hiring managers. And now after you were bombed with calls for selling now you have to give reports on the past consultants performances.
The above system could work for small teams although still inefficient. But how scalable is this way of working? Or maybe there is no need to scale the hiring part of the recruitment process as every hiring manager would not be involved in recruiting directly(in their personal teams) more than 30 consultants at one given time. However even at that small scale imagine the amount of calls they have to deal with only for the recruitment purposes?
Wouldn’t you go for a more digitised solution? Meaning buying the consultant from an online platform where you already know the margin applied on them and having a full visibility on their 5 starts track record. Lets do an imagination exercise and try to extrapolate the Airbnb model to the recruitment process. Lets assume the consultants are the rented houses of Airbnb and the hiring managers are the travellers searching for an accommodation on Airbnb. The Airbnb takes 5% commission from owners and 5% commission from the travellers while the payment is done directly on their platform. Both parties have their 5 starts track record in terms of behaviour on this market and so full visibility and transparency in that process.
I truly believe that any recruitment agency shall move out of the physical world into the purely online world and keep their trading core business but stay exclusively into online market.
We invite all the hiring managers to share their past experiences with us below by leaving a comment.