Most companies have internal recruiting capacity as part of their HR team. The larger the company the more resources they typically invest in an internal team. The one thing usually lacking is the ability to recruit for the difficult positions – executive leadership positions – highly compensated, specialty roles – confidential searches. This is when an external recruiter is needed and valuable.
Internal recruiters usually rely on posting positions online – on company websites, job boards and LinkedIn. One thing many don’t realize is posting a job is advertising, not recruiting. External recruiters are “headhunters,” meaning they look specifically for the type of candidate required for the position and do direct outreach. There are many benefits to this including attracting “passive” candidates who were not necessarily looking to make a career change. Passive candidates can make great hires because they are “running to” something versus “running away” from a problem or a job they are dissatisfied with. This does not mean active candidates do not make good hires. It means a targeted candidate search will provide you with more options than simply posting a job to see who applies.
Finding the Right Recruiting Partner
When the time comes to select an external recruiter, choose wisely.
First it is important to find someone who is familiar with and has a broad candidate network in your industry. While not mandatory it will allow them to gain traction more quickly. They will also already have a solid understanding of the jargon and specifics of your market and they will know how to connect with candidates.
Next, make sure they are experienced and familiar with the job function. Again, this allows them to recognize the types of candidates that are the best fit. For example, if you’re recruiting sales reps it is extremely helpful if the recruiter knows what to look for and how to effectively screen candidates. Another important factor is the recruiter’s ability to effectively represent your company in the market. Remember, they are essentially selling the passive candidate on why your organization and the position would be a good career move. Credibility really matters with candidates and creates a much better experience.
Finally, make sure the recruiter has a good strategy and strong, repeatable recruiting process. If not, you are less likely to attract top talent.
How Do You Partner with an External Recruiter?
Many companies utilize external recruiters in a highly transactional manner. In some cases, they assign multiple recruiters to the same position, creating a “free for all” environment. Here are some tips to make sure you use this valuable resource wisely.
The first thing to address is the actual agreement. Most companies use contingency search agreements which are highly transactional in nature. With a contingency agreement the external recruiter is only paid a fee if they successfully fill the position. This causes them to behave in a very transactional way, meaning that they are likely to only work on positions they have a high probability of filling. When things get difficult, they will almost certainly move on to other positions that have a higher success rate. Retained agreements will create a high degree of commitment to the search process and also holds the recruiting partner accountable to completing the search. But retained agreements are expensive and mostly used in very high level, executive roles. Another creative option is to have hybrid agreements that ensure some compensation is guaranteed for the external recruiter. Hybrid agreements can take different forms including a “container” payment which means the company commits to a small percentage of the fee up front and that amount is deducted from the final payment. For example, if the total fee is $20,000 for a successful placement the recruiter may request a $5,000 non-refundable “container” payment that is credited at the end of the search. This creates a much greater incentive for the recruiter and allows the company to hold them accountable for results. Another option is for an external recruiter the company does repeat business with over the course of a year. The company and recruiter agree to an annual retainer amount and the recruiter bills against that during the course of the year. Again, this creates a true partnership and accountability between company and recruiter.
Limit the number of recruiters assigned to each position, ideally one per position. If you have multiple recruiters, including your internal team, interacting with candidates it creates confusion in the search. If a candidate is contacted by more than one recruiter, it makes your company look disorganized and inefficient. It also means you are not holding any of the recruiters, internal or external, accountable for the results. And to make matters worse if external recruiters discover they are duplicating efforts with candidates they will likely stop devoting resources to the search.
Another critical factor in effectively partnering with an external recruiter is communication. Regardless of the type of agreement you enter into, it is imperative that the company provide adequate details and information for the recruiter to be successful. Successful not only in knowing what to look for in candidates, but also in marketing the company and position to ideal candidates. The hardest part of an effective search is on the front end, detailing what you are looking for. I’ve always said it’s much easier to find what you are looking for if you know exactly what it is.
The final component of effective communication is providing timely and meaningful feedback to the recruiter on candidates they have submitted and after interviews have occurred. This allows the recruiter to refine their search efforts in real time and it also allows them to convey that feedback to candidates. Even candidates you are not interested in hiring deserve feedback and closure, and it will create a good candidate experience that benefits the company in future recruiting projects. And it’s the right thing to do.
Successful Outcomes
What do successful outcomes look like when you have a strong partnership with the recruiter?
For the company it means you will fill important positions more quickly and efficiently. You will also increase the likelihood of finding the best talent for your organization because it is strategic and targeted towards your desired outcomes.
For the candidate it will be a great experience. For the candidate you hire they will join your team feeling good about how you conducted the process and be more likely to stay longer and prosper. There is nothing worse than hiring someone who is frustrated with the way they were hired and onboarded to your company.
For the recruiter you will have a trusted resource who will want to do business with you again and likely be on the lookout for top talent proactively. For all the bad things you hear about recruiters (and there is a lot!) much of it is caused by a highly transactional engagement and process. Treating external recruiters with respect and ensuring their needs are met is creating good karma for everyone.
