Is the Value in the Client, OR the Candidate?

THE TOPIC: Is the Value in the Client, OR the Candidate?

So today I am going to be addressing concerns I have been met with from hiring companies, hiring managers, and their experiences in their recruitment and retention efforts. Is the Value in the Client, OR the Candidate? As we know costs for recruitment are super high currently, and here is Personal-Best we are trying to combat that and drive change in the market… but that’s not what we are discussing today.

Many companies hiring think they are the value to their recruitment consultancy or talent acquisition business, but is that true?  Of course, it makes perfect sense to think that you. The client, who is hiring the recruiter or candidate source are the asset because you are paying for a service. But are you the only asset the recruitment company has? Well, recently it appears not.

WHAT HAS BEEN HAPPENING?

I’ve been informed, by reliable sources, mostly hiring clients and companies. That they have struggled to retain the placement candidates provided for them by recruitment companies, funnily enough, usually, after the 90-day guarantee period has lapsed. So, what would be causing this? Well, if you’re a company hiring, think about this. The candidate sourced for you by the recruitment company made that recruiter anywhere between $15,000 to $40,000 or beyond, right?

 Well, if that candidate brings that value to their recruitment consultancy company. They will want to earn that fee for that candidate again. It is not uncommon, for a recruitment company, to be a talent acquisition firm. Or the recruiter will poach the candidate they placed with YOUR organization, 3 months after the guarantee period runs out on that candidate to then go ahead and place them in a new role. Of course, if the placed candidate is willing. This then doubles their business and I will tell you why…

So here is the scenario.

Is the Value in the Client, OR the Candidate? For example, if your company is hiring engineers, you have a recruiter or recruitment company that you use. The role has a salary of 100k per year and your recruiter charges you a fee of 20% ($20k). They give you a 3-month guarantee that the candidate will stay in the role. After 4 months, suddenly your candidate has found a role that pays 20k per year more than yours. 9 times out of 10, it is the recruitment company that has found them a higher paying role and is trying to poach them to obtain the fee again.

So looking at the bigger picture, you paid 20k for the engineer, and they’ve now left. The same recruitment company is now charging their new client 22k for the placement of the same candidate, and then YOUR COMPANY goes back to that same recruiter or recruitment company for ANOTHER engineer to fill the role the other candidate left, so the recruitment company is getting paid 3 times for one candidate!

The answer is, NO, currently, the client is not the only asset a recruitment company, candidate sourcing company, recruiter or talent acquisition firm has, the candidate is just as valuable, if not more!

HOW CAN I AVOID THIS HAPPENING TO ME?

Is the Value in the Client, OR the Candidate? The very best way to avoid this is simply by having a recruiter or recruitment company/talent acquisition business on your side. Who cares about the client and in the end, their recruitment company’s reputation in the market.

One thing that Personal-Best recruitment consultancy does, is, ensure we charge lower fees. This gives you the reassurance that you, the client are our most valuable asset and not the candidate. We don’t charge a high percentage fee and we don’t re-use our candidates. Personal best care about finding our candidates a job they love, and we care about our company’s hiring satisfaction with their chosen candidate. We wish both of them a long, worry-free, and strong partnership for years to come.

CONCLUSION

As a company hiring, hiring manager, or employer, you must keep a strong connection and line of communication open with your employees, particularly ones that come from high-cost recruiters. Speak to them often, and listen to their aspirations for their work with the company. Be competitive with salaries and benefits, and create a supportive and inclusive work environment.