Alternatives to Recruitment Agencies (Yay!)
This is the follow up to the 'Why Everyone Hates Recruiters' post.
Now that we have all agreed that using recruitment agencies is not the way forward I will show some different models you can use to get the best candidates for your business. I'd like to keep this jargon free but the industry has some pretty silly names for things so sorry about that!
1) Internal: With an internal recruitment team you can take back control of your messaging, all the candidates are yours and the cost per hire will be much less. You might need to use agencies for particularly senior or specialist roles but hopefully not too often. Don't underestimate the cost for this though. You have salaries, systems, advertising, memberships and more to factor in. But if you are hiring enough - this might be the way to go.
2) RPO: A traditional RPO is the full outsourcing of your recruitment function for the whole company or a particular business unit. Payment can be structured in several ways but most simply as a monthly management fee with a reduced placement fee. You can save on all the set up costs mentioned above but this isn't a super cheap model either. Once your volume of hiring picks up you can move over to the internal model.
4) Vendor Management: A Vendor Manager is a company that sits between you and the recruitment agencies. There are generally two types of Vendor arrangement. Master Vendor or Neutral Vendor. Neutral means that the vendor manager outsources your vacancies to recruitment agencies immediately. Master Vendor means they will get there own team to have a go first, usually at a reduced rate. If you're going to do it, pick someone you think will do well and make it a 'Master Vendor' arrangement. It's better for your bank balance.
There are various models that can be applied, not just the old school give it all to the recruitment agencies approach. Working out which way to go can be tough. Think about how much hiring you will need to do, what your budget is, how quickly you need to get it done and how much time you have to manage the process. Oh and I forgot to mention, at Walker Davies we have come up with a different (better) way of doing things...I've not listed it above as that would feel somewhat self-serving but give us a shout to find out more.