Recruitment Strategy: Ditch the multi-agency contingency model!
It is widely agreed that agencies working to a multi-agency contingency model, probably have a c25% fill rate which means they have to register four vacancies in order to create one placement. You quickly see how this becomes a numbers game and why so many recruitment agencies are heavily KPI driven. If enough CVs are sent, then one may just get the job.
In this instance, it is all about the volume of activity rather than a focus on quality. The reason that this model still exists is a combination of how employers choose to buy, and recruitment companies choose to sell, their recruitment services.
The good news is that there is a solution and it’s an easy one! Spend some time vetting your recruitment partners and choose one and let them deliver in a similar manner to that of any other professional services firm. You wouldn’t expect four accountants to have attempt at your accounts and pay the one who prepares them in the way you most prefer!
The Key Advantages:
You can actually work in Partnership!
If you have an exclusive arrangement, then you can change the way that your work with your recruitment partner. The reason that I promote an exclusive model is because I don’t want to sit opposite you trying to sell you the candidate I have submitted, rather I want to sit next to you and work with you to find you the best possible candidate for your role.
If you have four agencies working on a position, they are all going to be selling you the benefits of each of their candidates and quite rightly so. The problem for you, however, is that no one is going to be mentioning any of the areas that they may not be so strong.
When you work exclusively with a Recruiter, you are able to have a more rounded conversation regarding the pros and cons of each candidate under consideration. From a candidate perspective all applications get the same representation which will also improve the overall candidate experience.
Competitive fee arrangements
I have touched on the issue of fill rates above. It is widely agreed that 25% is an average fill rate when working on a multi-agency basis. Some specialists will be better than this, some will be worse. This means that if you pay a recruitment fee under this arrangement then you are in effect paying for not just your assignment, but also all of the work they have undertaken where they have not been successful.
One of the key complaints about the recruitment industry is rates of up to 25-30% for experienced hire recruitment. When you look at the maths though, you can see why these levels are so high and that is because most of the time Recruiters are working on assignments where no revenue is going to be generated. When working exclusively, a strong Recruiter would expect fill rates to rise to 90%+. If a Recruiter is going to fill the vast majority of assignments that they work on, it means that they can work at a much more competitive level and importantly invest the required amount of time to manage the assignment correctly.