Principles to think about in the design for a new recruitment business that has a real differentiator and maximum value add.
Disrupt agency recruitment business using a hi tech, end to end solution design that recognises the high value add of consultants. The opportunity is to enhance the consultant! It is not possible to replace the consultant with technology, only to make them more professional
Market segment targeted
Professionals and specialists because these are higher value roles and have cyclical skills shortages to support recruitment service providers.
Macro market issues are:
Customers do not perceive value in the fees for recruiting. Customer’s internal forces from finance, HR and procurement feed this perception. They use it to build their own position, we must counter with the outsource argument. Which is, “If it’s not core competence then business will benefit from engaging a partner”. We must convince them that we are a unique engagement option. That we are offering greater business benefit that internal or other external options.
Candidate frustration with recruiters is high. Candidate distrust recruiters and feel mistreated by them. A fair portion of their frustration is drive by the market forces of the old model requiring recruiters to be secretive to stop leakage of candidates via backdoors and competition plus the undisclosed use of the “float”. We need to build talent pools of quality candidates to be able to satisfy clients. We therefore must be positioned as attractive to candidates. Our solution brings greater openness to the candidate relationship and higher levels of honesty. Employment regulation impedes us from directly investing too much in candidate care to the level the candidate desires, partnering with suppliers of candidate services seems the best option and can be done using private online portal dedicated to candidate care for those of sufficient quality for our clients.
Recruiters business model is terrible with very poor cash forecasting accuracy due to the contingent nature of much work. Plus the large amount of work that is done for free because of not winning every job worked. Our solution is to introduce new service options that eliminate contingent nature and are exclusive assignments at all levels of role. Transitioning clients from the riskier contingent non exclusive work has major impact on cash forecast accuracy and increases profitability. It also address the issue of recruitment consultant churn by improving the work life of consultants with much less frustration from working hard for no reward.The management of recruiting business change their approach issues to new ways. E.g. utilisation and realisation become more controllable and satisfying for staff.
Principles of Design for a New Recruitment Business
- Visible Value – Best Value Investment – New Pricing Models – New Risk Sharing Models ✔
- Quality of Hire – Best fit People solution – Scientific approach from end to end ✔
- Truly Collaborative – Open and Transparent communication in real time between client and consultant – single source of truth, nothing hidden ✔
- Candidate Attractive – New level of honesty and openness ✔
- Quality Professional Service – Structure, Discipline, Timeliness, Objective, Unbiased, Accountability, Speed ✔
- Value Add Market Knowledge – Niche Specialist Consultants – expertise in Industry and Job Family (occupation) ✔
- Value Add Hiring Manager Team – Inclusive of all internal stakeholders improves their governance and productivity ✔
- Low Cost – halve the fees ✔
- Optimise the supply chain approach – use end to end solution approach, Make sure it solves a whole customer problem not just a piece of a problem ✔
- Build technology platform foundation- maximise the use of technology to create value add and reduce cost from day one, design for constant refinement and evolution ✔