Licensing – The 10 Commandments

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The recruitment agency sector is a broad church facing unprecedented challenges on all sides. Now is the time for every Recruitment Consultant who cares about the industry to step forward and help shape change from within.

In order to achieve change I believe the current representative bodies (IOR, REC, APSCo and others) plus the government agencies (GLA, EAS and others) plus the growing number of networks (IRG and others) should harmonise their individual policies around a set of broadly accepted, fundamental principles and in line with current legislation.

The “stick” would be provided by the above mentioned bodies issuing revocable licenses to Recruitment Consultants and promoting the benefits of Employers of using licensed Consultants only. The “carrot” would be the raising of standards, strengthening of value proposition and the improvement of the industry’s reputation.

If you wanted to effect change, what would your 10 Commandments be?
Here are mine. 

1.      All Recruitment Consultants (you) must pass a common entrance exam covering law, best practice and compliance before receiving a license.

2.      All Recruitment Agencies (firms) should self-certify that they and their Consultants comply with the relevant licensing obligations for that year (they may change from year to year) and make themselves available for inspection

3.      You will send a summary of “Expectations and Rights” to every candidate you represent.

4.      You will not send a CV unless you have written authorisation from the candidate regarding both that client and that job.

5.      You will provide timely and honest feedback to all candidates you choose to represent.

6.      You will send a summary of “Expectations and Rights” to every Client you work with.

7.      You will agree and sign Terms of Business with all clients prior to submitting CVs to them.

8.      You will not advertise a job unless you have written authorisation to do so from the client regarding that job.

9.      You will represent all jobs in writing accurately.

10.  You will not call anyone for at least 1 year if they have expressly asked you in writing not to call them.

You cannot claim to be professional unless you belong to a trade body!

The thing about …isms (sexism, racism etc) is that the attitude spreads rapidly amongst stupid people who believe their status is enhanced by it. So for example a sexist remark, enforcing the speaker’s sense of superiority and the victim’s inferiority, is quickly adopted by stupid men (mostly, although it could equally be stupid women) as a kind of peer group position.

The same is true of “recruitmentism” as exemplified by various HR bloggers including Neil Morrison who refers to Recruitment Consultants as “the gutter rats of business”. The HR community quickly adopts this position as a way of falling in line with “HR thought leaders” without thinking for themselves how insulting it is to the many perfectly good Recruitment Consultants who perform a valuable service.

As with all … isms the solution is education. Recruitment agencies and their representative bodies need to educate and inform the marketplace about: what they offer, how they add value, how they intend to maintain professional standards, how their Consultants are developing themselves professionally etc etc.

Over time this will make a huge impact on how the market views recruiters but will not work unless it is done collectively, as one industry and as such will require leadership by the IOR and other bodies and most importantly the overwhelming support of all recruiters.

If Recruiters really want to do something about how they are perceived in the marketplace they must join or form groups that can truly influence change. Personally I’d join the IOR as they have a progressive agenda. Annual membership for a Consultant is only £49! thats less than dinner for 2 at Pizza Express!!! 

http://www.theior.org.uk/ior-membership?r=member

But if you don’t join any group I don’t think you can claim to be “professional”.

6 factors that will shape the agency sector.

In spite of the fact that agency recruitment is under attack on all sides I have no doubt it will survive if only because agencies are “independent” and able to supply any employer whereas in-house recruiters are not. This critical distinction is what agencies should now focus on whilst building candidate-orientated as opposed to client orientated businesses.

The days of working for “clients” who don’t return your emails, don’t pay you on time and regard you as a necessary evil, to quote some of the recent LI discussions posted by embattled recruiters, are over. Now is the time to take back control.

1. The SME market.
   Ask yourself the question: Why do employers use agencies? The “It’s easier than trying to do it ourselves” reason seems to be evaporating as many employers find ways to engage and attract new hires directly. But is this true of all employers or are the well-known brands enjoying the benefits of social media recruitment but in fact the less-well-known employers are lost in the ensuing noise. The agency sector must use its unique independent status to offer the SME sector access to candidates.
   
   
2. The Candidate’s the Client?
   Are employers clients or are candidates clients? What I mean is who do you represent? A Sports Agent will represent his/her client the sports person. So if Wayne Rooney goes to City, his Sports Agent will represent him and City will pay the Agent. Exclusive candidate representation is the way forward which will give agencies a much stronger position in the recruitment process, allow them to deal with any end-user and provide candidates with a better service.
   
   
3. Social Media.
   How does SM work for agencies? Recruiters needs to build and engage with their candidate communities using high quality, relevant content and their independent status to attract candidates who want to understand what’s happening in the fast changing SME markets. Those that are best at it will attract and work with the best Candidates.
   
   
4. Competitive pricing.
   The issue of fees is a tricky one because all agencies feel that they work hard for their revenue whereas many employers think the opposite. It’s the Pied Piper story all over again and we know what happened there! The truth is that agency fees can only fall sustainably if agencies are able to: reduce operating costs and/or increase candidate placements. Building SM candidate pools and joining new channels to the end-user market provided by 3^rd party websites will help agencies become more competitive.

5. Education.
   This is tied up with number 6 and is all about raising standards and being seen to raise standards. Not investing in the CPD of recruitment consultants is a false economy. It’s about individuals taking time out to learn new stuff and being progressive as an industry. Education provided centrally also helps get the industry on the same wavelength.
   
   
6. Leadership.
   Someone needs to find a way of representing the interests of both the bigger players and the thousands of small firms that operate in the market.  They also need to energise and unify the sector by rolling out initiatives designed to help agencies evolve. Recruiters have endured years of poor or zero representation and so winning back their support and subscriptions is challenging but nevertheless an essential part of taking a big step forward.

Agency recruitment needs a game-changer like the Internet!

Most people don’t address the “what if” scenario until it’s too late: what if the banks go bust in Spain, what if global warming melts the ice caps and what if Zuckerberg has a Ratner moment?

The big problem with such scenarios is that the outcomes are usually catastrophic.

A similarly dangerous scenario is converging on the agency recruitment sector and yet nobody within the sector seems to be taking any steps to avert it. Why?

The first problem appears to be that Recruiters don’t think there is a problem! They broadly accept the market is changing but are reasonably happy that the outcome will be the survival of the fittest (that means them) and the extinction of the mad, bad and sad.

The second problem is that Recruiters (In-House and Agency recruiters) are reluctant and even suspicious of new ideas and models proposed by 3^rd parties. I bet there are fewer than 10 Agencies/In-House teams in the UK that have someone monitoring emerging new recruitment products and services for value.

And finally the third problem is that the industry does not have an innovative and representative leadership. We need leaders who consider the "what-if" scenarios and find solutions to the problems now being faced by every recruitment firm in the UK, Europe and Globally.

If nothing is done the most profitable agencies will probably survive but there will be a lot of pain for everyone along the way and you’ll continue to do the same things you’ve been doing for the last 10 years but in a much smaller market.

I believe doing nothing is not the answer and agency recruitment needs a game-changer or two! We need something that only agencies can offer and which employers will find irresistible - like for example the internet!

Everyone knows what the internet is: It’s a collection of inter-networked computer systems that spans the globe. It’s the "system", offering huge efficiencies in terms of time, reach and cost, upon which progress and change seem to depend. Think of Google, Skype, Facebook and Twitter; none of these would have evolved without the internet.

If we could create the same type of "system" using inter-connected recruitment agencies around the globe, you’d have the recruitment equivalent of the internet to offer your clients and the best bit is that only the agency sector can offer it. All we need to do is connect it up!

We're not the only ones offering a solution but if you'd like to join us visit: http://vacancy-clearing.com

Groundhog Day

When Robbie Cowling was motorcycling to his Basingstoke workplace from his home in Essex and each day passed on the other side of the road a motorcyclist going the other way, the thought occurred to him that if the other guy was an IT contractor like himself and they swapped jobs they’d save themselves both the 3 hour commute!

Robbie goes on the found Jobserve and become one of the architects of the single most significant event in recruitment history; the introduction of the Job Board. Whilst the move from print to digital significantly reduced the cost of attracting candidates, it did not however change the agency process – Groundhog Day.

The basic process is the same whether you’re in executive search or recruiting temps: take a job description, source possible candidates, identify the best candidates and introduce to the client. It is usually transacted by a small group of recruiters and may involve a very large and far-flung group of potential candidates who need to be “identified” (relatively easy), “approached” (time-consuming) and persuaded or “engaged” (tricky).

The reason the recruitment sector reminds me of Groundhog Day is that (with some exceptions) each time an agency takes a brief it starts the process from scratch. This is arguably because the candidate market is in a state of constant change and the best available candidate 6 months ago may not be the best available candidate today. This is where the “consultancy” in Recruitment Consultancy comes.

However…

Collectively the estimated 100,000 recruitment firms in the world know virtually all the candidates in every market “personally”. They’ve all been contacted! Every SAP Consultant in Spain, every Lawyer in Israel, every Accountant in Australia, every Engineer in the UAE has been identified, approached and engaged! The gold’s not buried! It’s all been mined and is selling in the market. All you need to do is find the right Recruiter that’s already got the right Candidate.

In the same way as someone living in Essex and working in Basingstoke doing exactly the same job as someone living in Basingstoke and working in Essex makes no sense, so too does the concept that the traditional highly engineered approach to recruitment is the only way to use the agency sector. There’s a massive resource of existing relationships out there that you could tap into in a matter of hours.

http://vacancy-clearing.com

Now seeking business partners to act as Associates (sector experts) and Country Managers (distribution channel leaders). See website for details or email david@vacancy-clearing.com 

Work for us and build a new global recruitment model

The agency recruitment model has not changed much in 25 years. Employers choose agencies they feel confident will represent them correctly and can deliver the candidates they need. The process uses a small number of agencies (a PSL or preferred supplier list) to break down a large potential candidate market and deliver the best available hire.

The problem with this PSL model is:

1. There’s a chance a small number of agencies will not find every candidate,
2. It often takes a considerable amount of time to engage and deliver candidates,
3. It’s expensive compared to other options now available to Employers.
 

The PSL is the backbone of the market and is where the “Consultancy” in Recruitment Consultancy comes from BUT,  I believe we need to also offer Employers alternatives.

Vacancy-Clearing.com is a unique recruitment agency introductory service

We can introduce an Employer to the Recruiter that we know already has a relationship with the best available andidate for the Job. See website for the How!

1. It has great geographically reach because it’s online and is open to all agencies,
2. It’s fast because these Recruiters are not looking for candidates, they’ve already got them,
3. It’s low-cost because there's no cold-calling or candidate sourcing involved.

The Opportunity: Country Manager and Associate.

We’re now looking for Country Managers in all major recruitment regions (UK, Germany, Australia, Hong Kong, UAE, USA and others) to build and manage teams of Associates (sector experts) across all the major agency recruitment markets (IT, Finance, Legal etc).

Associates will take charge of a particular sector reflecting their expertise (eg Accountancy/UK) and be responsible for: promoting V-C through Social Media, selling to existing and new contacts, screening CV traffic on all advertised jobs and managing agency feedback.

The model anticipates 1 Country Manager and up to 30 Associates (1 sector expert for each market). You will receive a substantial monthly share of advertising revenues generated by your sector/country. Unfortunately we’re not able to offer a salary as we’re a start up.

If you’re interested in a new venture and you have the required agency recruitment background and would like further details please drop me an email to david@vacancy-clearing.com

How to overcome agency sector fragmantation

 

As I result of reading this interesting piece from NPA I thought the membership debate might enjoy another perspective.
http://www.npaworldwide.com/2012/05/24/3-key-diferences-npa-bountyjobs/#.T79HQlL-6qw

With 10,000 firms in the UK alone with an average size of 5 Consultants each (if you remove the big players that average number of Consultants is even lower) it’s not surprising that one of the first words used about the agency market is “fragmentation”.

The problem with the market being split into so many small suppliers is that it becomes inefficient: lots of firms cold-calling the same employers, pitching the same candidates, advertising the same jobs, tripping over themselves to secure revenue, being almost invisible when you want to find them and with virtually zero inter-agency communication.

From an employers perspective this fragmentation creates problems too. If they want to cover the markets from a geographical and sector basis and they want the best agencies on the job (arguably the niche independents) they’ll need to appoint quite a few of them. However this might only equate to 1 or 2 Consultants per job group (eg Finance roles in the UK or IT in Spain) , which in a tight global skills market be like trying to download video without broadband.

The independent recruiter is the backbone of the industry but we must find a way to reduce operating costs, improve efficiency and increase communications if we are to compete. One solution would be for agencies to form or join groups, which could coordinate the activities of its members more efficiently without threatening their independence. By joining a group you automatically raise your profile, build buying power, create a new business channel and open up a communications with other suppliers.

Apart from the obvious ones like the IOR, APSCo, REC etc I thought it might be useful to start a list. Please add any you can think of in the comments section