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Who needs recruitment companies these days?

18 December 2015

The economy is picking up nicely. Unemployment is at its lowest since 2006. The number of jobs being advertised is as high as it has been for even longer. Happy days!

…..or are they?

Well, if you are fully staffed with top quality people, no one ever gets pregnant or simply wants to leave and if your business is growing on the same resource as you currently employ – then days are, indeed, happy. Hands up if that describes your company…..thought not!

All is not lost though, because recruiting can’t be that difficult. Even that lot at Badger Associates can do it. How hard can it be?

Let’s take a look. Imagine you make widgets. You are pretty good at it but your local widget sales person has just handed in her notice because those Badger Associates people found her another job with one of your competitors. Just contacted her out of the blue, sorted out interviews, offered more money and, hey-presto, you need a new sales person. Shame because she was good and wasn’t being particularly overpaid.

Never mind, stick an advert on one those free job board things online and pop one in the local paper and you’ll be fine. After all you estimate there must be around five hundred people locally who can sell widgets and you are paying around the same as the others, apart from the b*****ds who pinched your sales person.

 

 OK, 500 eh….

No mention of salary in your advertisement reduced the number of people who will apply by 42%. (verified, 2014). That still leaves you 290 widget sales people. Plenty to choose from.

Let’s assume your salary is exactly average. That means that you will only be attractive to sales people earning less than average. Any idea why they earn less than average? Right – almost certainly because they are less than average. You can’t attract people earning more than average so that means you are now working with an audience of 145 below average people.

Unless you use a wide, expensive and innovative range of advertising routes you are not going to get near the top people – re-read the first three sentences. Let’s be very generous and say your advertising gets to 10% of the remaining audience, and that’s being really generous.

You advertising efforts are reaching 15, less than average sales people who are looking for another job for a reason. The fact that you are relying on a job board means that unless you are carefully using the right key words, in the right places, using the right location and a whole lot of other criteria you are not even going to hit those 15. Prepare to be disappointed at interview.

The recruitment industry went through a tough time since 2008. Today, it faces a whole new set of challenges – re-read the first three sentences. The good ones are adjusting and innovating right now and have been for some time. What worked in 2015 won’t work as well in 2016.

During the bad times many employers decided that they could save money by handling their own recruitment. Encouraged by the job boards they began to step into areas of online advertising that had been the exclusive preserve of recruitment companies. That’s still happening, but as outlined above, the top recruitment companies are moving on and moving out. Leaving the fifteen dozy widget sales people to the company who thinks they can do it for themselves.

Onwards to 2016 – innovate or get left behind.  

OK, 500 eh….

No mention of salary in your advertisement reduced the number of people who will apply by 42%. (verified, 2014). That still leaves you 290 widget sales people. Plenty to choose from.

Let’s assume your salary is exactly average. That means that you will only be attractive to sales people earning less than average. Any idea why they earn less than average? Right – almost certainly because they are less than average. You can’t attract people earning more than average so that means you are now working with an audience of 145 below average people.

Unless you use a wide, expensive and innovative range of advertising routes you are not going to get near the top people – re-read the first three sentences. Let’s be very generous and say your advertising gets to 10% of the remaining audience, and that’s being really generous.

You advertising efforts are reaching 15, less than average sales people who are looking for another job for a reason. The fact that you are relying on a job board means that unless you are carefully using the right key words, in the right places, using the right location and a whole lot of other criteria you are not even going to hit those 15. Prepare to be disappointed at interview.

The recruitment industry went through a tough time since 2008. Today, it faces a whole new set of challenges – re-read the first three sentences. The good ones are adjusting and innovating right now and have been for some time. What worked in 2015 won’t work as well in 2016.

During the bad times many employers decided that they could save money by handling their own recruitment. Encouraged by the job boards they began to step into areas of online advertising that had been the exclusive preserve of recruitment companies. That’s still happening, but as outlined above, the top recruitment companies are moving on and moving out. Leaving the fifteen dozy widget sales people to the company who thinks they can do it for themselves.

Onwards to 2016 – innovate or get left behind.  

  

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