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Rethinking the External Recruiter Equation

Rethinking the External Recruiter Equation

Many recruiting firms have expired in the last five years due to the downturn in the Oil and Gas industry. Those left are likely really good. Why?

Because they had “staying power.” Yet, there are still those who wonder if building an in-house recruiting arm is not more beneficial. Seldom, if ever, are in-house operations more efficient or effective than external Recruiting firms. Here is why:

 

  1. COST – Depending upon the size of the company, in-house recruiting operations are costly and more costly. The minimum compensation for someone good and knowledgeable is $50,000 plus the benefit package of 30% of annual salary. So if there is just one person in the department we are talking about 80k annually. This number does not account for turnover, which is high and incompetence which is even higher.
  2. INBREED THINKING – Seldom, if ever, do in-house recruiting departments enjoy “outside the box” thinking which occurs quite frequently within “on-line” recruiting firms. Real honest to goodness recruiting firms are often filled with people who have specific knowledge pertaining to an industry, often more experience than you could ever imagine lies within the Recruiting firm employee. And they have a firm reputation to uphold.
  3. LACKLUSTER PERFORMANCE – Initiative is often set aside because no-one knows how to measure it and those who try are beset with conflict. I would say, without any doubt, that those working for a Recruiting firm have a very high level of initiative. Most of those people are earnings driven and paid largely on commission. You either perform or you beg in the streets.

 

So, those are just three very good reasons that external Recruiting firms deliver better results, for less money, than you might expect to get from your internal department.

Now here are 3 good reasons you should use external Recruiting firm:

 

  1. They are experts at what they do and are not influenced by internal politics. Filling important jobs is all they do and most of their people earn a good living doing just that.
  2. Their fees, sometimes, seem large but when you put them in perspective they are very small. Most quality recruiting firms will work for 15-20 percent of the annual compensation of the job being filled. Most external firms can and will fill the job with high performing people in 90 days or less.
  3. External recruiters are often more focused and not distracted by filling other jobs or equal or less importance.

 

If then, you have important positions to fill and you are one who wants something beyond average check out your local, external recruiting firm. sjb@gmstalent.com

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