I’m a bit late with this blog post, but here is a summary of the great discussion we had yesterday on the Future of Recruitment with Steve Ward, from Cloud 9 Recruitment and Jennifer McClure, who recently set up her own strategy firm.
There was much discussion on whether clients are using agencies at all and if they need recruitment firms. Sodexo, who employ 385,000 people globally only recruit 5 jobs a year externally.
Is there pressure on fees, should we all move to generally lower rates across the board? Should we focus on niches and delivering alternative services and acknowledge that employers can recruit 80% of their needs directly?
Access to names is of little value these days, everyone can get names. Niche recruiters have an advantage, what is the future of the generalist recruiter?
An in-house recruiter commented that she had seen rates she pays to agencies drop from from 22% to early to mid teens in the last 2 years.
Future of recruitment is building communities that will refer people to you, back to basics knowing your industry, having a peer group that is attractive to your client, they see you as an expert and someone who knows the right people in that profession etc.
Sodexo: If you want to source dieticians you tweet about nutrition etc, do a webinar on nutrition trends, people come to the webinar and you have a captive audience. Then invite them to your microsite etc and they start thinking wow, what a great company to work for. Their e-shots have a 30% “open” rate for the emails.
“Best Recruiter in the World” blog story: Jennifer spoke about how she once wrote a blog on who is the best recruiter in the world and how those key words saw her rise to being the No 1 organic Google search result for Best Recruiter in the World and people started calling her saying how they heard she was the best and can they come work for her.
In the US you can still get fees of 30-35% fee for certain roles and in certain industries, but only 15-20% for developers (for example) as there are so many of them. Fees, in general, are obviously much higher than the UK or Ireland.
What about the voice of the candidate?
The jobs are likely to find them rather then them searching for jobs. Do people prefer to approach companies directly or go to a middleman? Debate centred around whether candidates want a trusted expert to guide them rather than applying blindly to companies. Also the smaller companies need an advocate to sell their business to prospective candidates as otherwise people will just apply to the big name firms.
But are the fundamentals likely to stay exactly the same, is it not just a case that the tools are changing but recruitment stays the same, i.e. the future is broadly similar?
Good recruiters can advise candidates and their skills will be sought after by jobseekers as they trust their opinion, rely on the recommendations. The recruiter has to be a PR expert on behalf of their client and present them in the best possible light to the right candidates.
In short, the future of recruitment is more of the same only our tools have changed and we may have to reconsider our pricing and how we charge.