Naively, hiring companies think recruiters work harder when in competition on a job search

Totally not true that recruitment firms work harder if competing with another recruitment company.  Let me explain.

Most recruitment firms in Thailand compete on price and not on service or the quality of candidates. A “contingency” recruitment firm will only be able to invoice their client if their candidate is hired. Only then will the recruitment firm receive an income and the recruitment consultant a commission.

Consequently, it now becomes a matter of speed. Who comes first with a box of resumes? Who gets a first shot at getting the candidates interviewed?

The root cause is that clients only pay a fee contingent on hiring a candidate (a.k.a. success based) who was presented by the recruitment agency (hence the term contingency recruiters).

Recruiters of course know that client companies often multi-list their job openings. Because all that the clients have to do, is sign a document that confirms they will pay a fee if they hire. Consequently there is neither commitment nor risk for such clients.

When poverty comes in at the door, love flies out of the window. An old proverb that conveniently explains why a recruitment consultant gives up easily on your job, in cases where a quick database and Internet search shows up no relevant candidates.

A recruitment agency consultant may easily work on 20 jobs at the same time. To beat the agency next door, it’s all about getting that resume under the client’s door before anyone else. This forces the consultant to be a lot less worried about what exactly defines the client’s perfect candidate. Are you thinking the same as me? It’s like throwing spaghetti on the wall; meaning a trial and error method – try whatever to see what works. But the recruitment consultant must move quickly to the next, hopefully easier, job to stand any chance of meeting targets and receiving a commission.

The irony of this mad circus is unfortunately not favouring hiring managers and their companies. Rather than getting full commitment when they get recruitment agencies to compete, they really get a lot less attention and service.

  • Naively clients think, recruitment firms work harder when they are in competition on a search job. Totally untrue. Good recruiters put effort where clients are working in partnership and show commitment.
  • Hiring companies think they will get a better spread of candidates. Mostly, they won’t. They will get more inappropriate candidates and recruiters competing on speed, taking shortcuts, and flinging resumes at the order. One quality recruiter, with time to do a proper job, will unearth unique hidden talent.
  • Hiring companies don’t understand that dealing with many recruiters is time consuming, frustrating and costly. If they worked that out, they would see the benefit of getting one recruiter to do all the work.

via Why DO clients give out job-orders in competition? | Greg Savage – The Savage Truth

What do you think? Leave a Reply.