This is part one of my series about the value of recruiting firms. Why are recruiters worth it?
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ASAP Talent Services is one of the leading SAP-focused executive search firms. We also help clients with direct placement services and contract staffing. Today, I’d like to talk to you about the value that you should be getting from your search firm partnerships. In essence, why are recruiters worth it?
1. Expertise. We’re working with external search firms for hard-to-fill positions with high demand and low supply—firms that have deep expertise, know the terminology, and that have had relationships with the talent pool over the last 10 to 15 years.
2. Casting a wider net. Search firms can really help a company cast a wider net. Active job-seekers account for roughly 25% to 30% of the total talent pool. The only way to get that other 70% is to have the ability to identify a really strong search firm that’s willing to make the phone calls, send emails, and to directly communicate in order to get the word out about your marketplace opportunity.
3. Cost. Although sometimes search firm fees can seem like they’re pretty high, the truth is that in a high-impact position, getting the wrong hire is far more costly than any search firm fee. GE and Jack Welch did a study where it was estimated that a bad hire for an impactful position could be up to 10 times more costly to the organization than no hire at all.
Hiring the wrong person is far more costly than any search firm fee.
In a relocation scenario, if you can work with a great search firm that can find you local talent instead of having to pay a big relocation fee, it will a great way to save costs.
Additionally, if a role is open for too long, it can be extremely costly. It can even trickle down into company culture issues where people feel overworked, leading to people leaving.
4. Confidentiality. It could be that you don’t want the marketplace to know about the search, if, for example, you still have an incumbent in the role you’re looking to fill. Having an external search firm is a huge help in maintaining confidentiality until you’re later in the process and closer to selection.
Be sure to keep an eye out for part two of this series. If you have any questions about recruiting, feel free to reach out to me. I’d be happy to help you.
