Recruitment Industry Report 2019
As a Global Talent Partner, we work hard to develop long standing partnerships with our clients. It’s part of our promise to deliver the best talent acquisition service in the market today. To download follow this link: Schwarz and Vogel Talent Acquisition Industry Report Q2 2019
People are at the very core of every successful business. The services that our clients use to acquire new and talented people, in order to grow their businesses, are nearly as important as the people themselves.
This is why we took the time to really find out how our clients feel about the industry that assists them with finding bright new talent.
Our latest research involved polling a selected group of HR leaders, spanning various sectors and types of businesses. Our question bank focused on the recruitment process when using third party agencies to help them find talent for new roles within their organisations.
The majority of HR leaders felt that recruitment agencies only offer medium value for money.
Sentiment regarding the quality and fit of candidates presented to them for review was equally as negative. Just under 60% of respondents felt that profile requirements were met some of the time, with over 21% suggesting that profile requirements were not met enough of the time or not at all.
Businesses engage with recruitment agencies in order to achieve an objective. Just under 40% of HR leaders, when offered four options, ranked reducing the time to hire as their number one objective.
A large percentage of respondents held negative sentiment toward the suitability of candidates put forward by agencies. Just under 3% of leaders felt that agencies offered good value. Based on this result, it is reasonable to suggest, that some recruitment agencies actually increase the time to hire by delivering candidates that rarely fit the requirements set out during initial business engagement.
Reducing the cost of hiring was the second most important objective for HR leaders. With just under 76% of respondents noting that their agencies offered medium value for money, it is difficult to conclude that agencies are assisting clients with achieving their second most important business objective.
HR leaders were also asked to change one aspect of the service received from agencies. The overwhelming response pointed to improving the quality of candidates being put forward for review for open positions.
One respondent suggested more work should be done on client discovery and understanding the organisations culture, rather than just being focused on receiving a job description from the client. “HR leaders do not have the time as recruitment is only one aspect of HR’s role within the business.”
Another leader continued with the idea that a deeper understanding of the client’s business is required. “The best talent agencies are the ones that have more of a partnership approach and are less concerned with “making a sale”.
Gerrard Devaney, Head of Talent Acquisition, Schwarz & Vogel said: “Our research highlights a number of key issues our clients are facing when engaging with agencies to acquire new talent. First and foremost, the quality and suitability of candidates being presented needs to be improved. If agencies increase the time they spend getting to know their client’s businesses, they’ll begin to better understand which candidates will fit and which will not.
By spending more time on client discovery, a natural partnership will begin to form between client and agency. As clients start to feel like they are being offered a long-term partnership, as opposed to a quick sale approach, the perception of value for money will begin to change.
The data relating to value for money is unsurprising. There are many factors that compound the negative sentiment in this area. Some clients are being forced to engage with a high number of agencies, to ensure they have sufficient candidate coverage. Clients are effectively hedging against receiving bad quality candidates from the agencies that don’t offer long-term partnerships.
As we know, recruitment is just one function of HR and leaders battling time pressure don’t have the bandwidth to nurse and feed agencies to ensure they are fully equipped to deliver excellent candidates. On the other hand, they shouldn’t have to, fees are high, especially when recruiting for highly skilled professionals.
Agencies should naturally engage in client discovery as the first step toward building a long-term partnership with their clients. Effective discovery will lead to improvements in quality of candidates. High candidate suitability will reduce the time to hire and as a consequence, recruitment costs will be driven downward.”
Schwarz & Vogel work with SMEs with between 1—200 employees. As a Global Talent Partner, we are committed to developing a long-term partnership with all our clients.
Understanding our client’s businesses, through effective client discovery, allows us to select the right candidates more frequently than our competitors. Presenting more of the right type of candidates for our clients increases speed and efficiency within the recruitment process.
Our client’s success is the key to ours.