Quality not Quantity
Irrelevant of how good an agency, how good the individual consultants are or how great a relationship we have with any client, for the last 6 or 7 years or so during the recession, price has been the only key item that wins business. The ultimate knock-on effect of this is that it promotes a culture in our industry where we are sending over as many candidates as possible, as fast as possible, hoping for a hit; the term "it's a numbers game" is heedlessly banded around almost too nonchalantly.
This is where the problem starts. The quality of our service starts to dip and the lower price that is reflected is warranted. The biggest issue is that it is almost irreversible... how do you raise a price whether or not you raise your standards, after you have agreed a 10% flat fee?? It is not easy, I've tried it many times.
We've not helped each other either in the recruitment industry; it is a viciously competitive industry and needless to say due to that competition and the need to win more business in this squeezing market, the price is the easiest thing to sell on by merely dropping it. "What are you currently paying? We'll promise to save you money with your recruitment regardless of the vacancy" Sound familiar?
Fast forward to the here and now. We are back at pre-recession economic GDP and the country is on the mend. So how does this fair for the recruitment industry? Good as it happens, as long as we are being smart and stick to principles and ensure that quality is being sold, not quantity.
My clients have a certain expectation when they call me with a job. The main one is that it is me dealing with the recruitment, so they don't have to go through the process themselves. The key thing is the process. My job is to ensure that I map out a successful process of recruitment from start to finish with expectations of timings, results and costings from the very beginning. With this I am able to quantify all aspects of our service and not just the price. Using this as a sales tool, my team and I are able to sell our service on much more than just single introduction fee. This conversation often allows the client an insight into how much of a quality our service actually is. This also means the output of CVs is reduced per position as we are not having to adopt the "numbers game" method of sending as many CVs per position as possible as every CV we send will be well matched. Ultimately our fill rate will be increased as we understand what our clients are looking for.
The rise in the economy shows that companies have more money to spend but equally are still not likely to be frivolous (like pre-2008). This is why it is more important than ever to be able to qualify why we are worth our brass, but also being able to quantify why we are worth it. If you can't do that, then you may be in the wrong industry.
I really see what The post is getting at but also see why Gary made the comment he did. I personally can speak for hours about the differences between an internal recruiter and what we do. Yes Gary you are right in house recruitment is entirely different. We as outside search people work more like detectives. building a pool of candidates, subtle background checks to start, interview, testing, and much more. Then schedule interview, discuss opportunity, sell opportunity, debrief and play psychologist. For me the best way to describe the difference is that a candidate from a good search firm has been completely checked out fully vetted and comes with a guarantee.. bringing a value added service that insures our clients success and putting candidates at companies they can be happy and flourish is why we are here. It requires a hell of a lot more than finding a piece of paper that seems to be a match!
I am at a loss! I do not understand why the above article has been written. If a recruiter is searching the internet, using LinkedIn, Xing, Viadeo, Monster et al, then the price for the delivery of CVs should be low, perhaps 5-10% of salary. Because the recruiter has just done what any internal staffing person could have done. If a client retains an Executive Search Consultancy they are seeking a complete service. The identification of every one in the market, correct matching of not only competencies and capabilities and personality but also candidate aspirations with employer offering. Qualifications including proven achievements that show the individual has the track record of succeeding in the role. There is no question regarding price. A good employer/client that the cost of hiring the wrong person is much more than the fee for hiring the right one. If price is an issue, you are doing something wrong and should look to a different career.
Nice post and I do agree up to a point. If you evolve your product or service offering then your business will evolve. Fail to do this then your business will ultimately plateau then reverse as margins get squeezed and you find yourself working harder for less. You know the saying, do what you have always done and you will get the results that you always have. As an industry we need to be looking at ways to help our clients and candidates get better. It should and can be so much more than just filling a vacancy.
Some excellent comments coming through and reiterating my point that being consistent cheap is not something brag about. I like the point about not working on contingency. Something I try to get my clients to agree to. Doesn't always work but getting there slowly.
Price is about service and the perception of service, if you're prices are low what is the perception of your business? Low cost, low outcome? If you needed brain surgery and had to pay for it would you choose the doctor charging £10 per hour or £1000 per hour? I know which one I would want! Price yourself as the best then prove it!