Recruitment agencies' services must adapt to changing HR practices to survive
David Woods, 28 April 2009
3
3 comment's on this article.The service provided by recruitment firms needs "fundamental change" if it is to be flexible enough to meet the agendas of HR departments, according to the Association of Executive Recruiters (AER).
Garry Thompson, former HR director of online travel agent Opodo and founder of Aequus Consulting, said: "It is an extremely expensive decision to go to search [agencies] and so it has to be right and justified. Hefty retained recruitment fees are very hard to swallow especially in the current climate.
"HR directors will be looking for more cost-effective ways for flexibility in the way fees are charged as most of them will have had their budgets slashed."
The AER claims HR directors now have more choice than ever in how to recruit, for example, business networking, executive job searches, research companies or directly employing experienced recruiters. And recruiters were warned after the recession they will need to reconsider their methods.
Derek Smart, chair of the AER, added employers are now able to find staff for themselves. He said: "There is a fundamental shift in our methods of doing business affecting all players in the search industry with only those who are flexible enough to change surviving."
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Andy Levis - 28 April 2009
Interesting article and hopefully the recruiters who just farm cv's are the ones who have to reform as opposed to the recruiters who meet everyone involved and who offer a true consultative service.
ANDREW SPENCE - 28 April 2009
Recruitment costs will reduce with the evolution of social media networks such as LinkedIn, Twitter, Facebook. These networks will enable more effective matching between those looking for work and those selling their services. Gradually the 'transaction cost' of using recruiters will reduce.
Andy Spence - HR Transformation Consultant
Glass Bead Consulting
Michael Fisher - 30 April 2009
I agree, there is a place for high end executive resourcing where the agency adds true value through market insight, extensive company and sector knowledge, and a high quality candidate network. The proposition is straightforward, organisations will pay for key expertise. In a recent interim assignment one of HR Director interims took out over $1m of recruitment costs by being smart using online sites and clever marketing for general roles and retaining specialists for the big roles. The role of the recruitment agency is likely to change to a "Prada or Primark" and not much in between. Our HR interims have hepled organisations develop recruitment strategy and deliver a high return on investment.
Mike Fisher Cream Interim
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