YOU need to take 15 minutes to thoroughly explain to us exactly the skills you want from the person for the position. (This 15 minutes of time will usually save you 2-3 weeks of time in filling the position) This equates to a 40-60% speed-up on your profits from the position.)
Professional recruiters have drifted the river hundreds of times and waded it foot by foot even more. They know rocks, runs and undercuts where the 'smart ones' hide. Hooking a 'lunker' will make your heart pound.
This is the type of knowledge needed when hiring for critical management positions. Lots of people know how to fish and in fact catch their share of them. They might even take you out and help you do the same—a stringer full of fish that are easy to get.
The cost of hiring is much more than the cost of advertising to attract applicants. Obviously, salaries and benefits are paid to in-house recruiters. Their department carries with it travel, lodging and entertainment expense. Remember, too, the myriad overhead expenses. These costs, when spread over the hiring activity for mainstream positions may well be appropriate.
But diverting these resources to the highly specialized practice of hiring a key executive is inefficient. Worse yet, recruiting for these positions generally requires involving executives outside of the personnel department, having a negative impact on their own productivity.
What is the value of a given executive to your company? What should you be paying them for their contributions? What is that open position really costing you as the hours tick by?
One highly accepted model is that the individual should produce 5 times their rate of pay. This is a helpful guide when determining reasonable expectations.
Here is the explanation of the ‘formula’ above. Suppose you have a position for which you pay $60K per year. According to the model, multiply by 5 to determine the value to your company $300,000 (60K/year x 5 = VTC ). Now, look at this position as if it were open.
Each Month that goes by costs your company $25,000 (VTC / 12 = LPM) What does it cost per week?
This opening or non-productive position costs your company $5,769.23 per week. (VTC / 52 = LPW) Cost Per Day? $1,153.84 (VTC / 52 / 5 = LPD)
The recruiting process is always faster with a professional recruiter. The professional is 'race-ready' and will take the checkered flag many laps ahead of an in-house recruiter who was slow to get up to speed. Remember—they've spent their time at the track, learning the river and traveling the world of employment.
Additionally, the ability to locate a person who is able to 'hit the ground running' is paramount. Consider the impact of hiring someone through less effective sources then having to invest additional time and money on training and orientation—probably an amount in excess of using a professional recruiter in the first place.
The professional recruiter acts as a bridge between parties on either side of the hiring process. Not only do they have a highly developed understanding of the client's needs and how the candidate can serve them, they've determined whether or not the company and position will serve the candidate.
Negotiation carries with it the connotation that there is always a loser—that only the strong survive. Contrary to that idea, the professional works to create symbiosis. Both parties exist in a mutually beneficial relationship—a win win. This state of affairs must be achieved, or the job is not finished.
In business, just like poker, it is important to be careful who you tip your hand to. A public proclamation of your opening comes with several undesirable side effects.
Set aside the cost and dubious effectiveness of filling critical positions through an in-house vehicle for now. An open position is sure to create anxiety and apprehension among current employees. Disappointment over not being considered for the job—or worry about new management and transitional problems—have a negative affect on morale.
An in-house H/R person may have maps to the city, but lack the familiarity to keep you out of the bad part of town. The recruiter on the other hand, knows it like the back of their hand. Not only would they keep you from danger, they know all the construction projects, detours and dead ends that frustrate the journey from Point A to Point B.
The professional regards open dialogue with the client on any given issue a duty. This is in the client's best interest, but something an internal recruiter may be disinclined to do. Vulnerability to internal politics and cultural dimensions hinders the insider—the outsider is less affected by such things.
Outside recruiters have developed an extremely comprehensive view of the employment world. The professional travels it day after day, searching the places no foot has yet tread—seeking its mysteries and talents. It is this activity that gives the professional a level of skill and knowledge beyond that of other resources. A good recruiter's professionalism allows them to work in concert with any entities necessary to ensure the best possible outcome. Executive Hospitality Recruiters is what we are!
A professional recruiter is disinterested in force-fitting a candidate into your operation. They view your executive team as a puzzle—each piece must fit in its place perfectly. A missing piece ruins the picture.
A recruiter begins by developing an initial list of candidates. Each person—perhaps a hundred or more—must be contacted for initial evaluation. They are assessed as to their compatibility with the company's personality and culture. Candidates who get beyond this initial review then undergo further and more intensive scrutiny to eliminate all but those who fit the puzzle perfectly. These are the finalists presented for review by the client.