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The Return of Recruiters - SHRM
The Return of Recruiters
Will staffing professionals be the first or last to be hired as the economy recovers?

Amid accumulating signs that the Great Recession is moderating, companies that believe their core business is improving may begin to restore the employee positions they shed over the last several months.

Has the hiring begun? More to the point, are these companies building up their depleted cadres of staffing professionals in anticipation of employee hiring? Could the hiring of recruiters be, in the terminology of The Conference Board’s monthly national report, a leading economic indicator?

Experts’ opinions vary, but taken together their answers present a vision of workplace recruiting operations after the recession that will be quite different from the staffing models of a few years ago.


Help Wanted?

Angie Salmon, senior vice president of the executive recruiting firm EFL Associates in Leawood, Kan., says some organizations are starting to hire "because they feel more confident about the market and their businesses."

A recent survey by recruitment consulting company DoubleStar of West Chester, Pa., bears this out. Asked late last year whether they planned to increase hiring activity in the first quarter of 2010, 27 percent of respondents—representing organizations in the Mid-Atlantic states—said yes. This represented "a pretty good bump" over the 13 percent who indicated such plans for the fourth quarter of 2009, according to CEO Harry Griendling.

And the Society for Human Resource Management’s latest Leading Indicators of National Employment (LINE) report, released in March, revealed that hiring was up on an annual basis for the fifth straight month. The percentage of companies hiring in manufacturing will reach a level not seen since June 2008, according to the report, and the percentage of companies hiring in the service sector is the highest since July 2007. The LINE report is based on a monthly survey of private-sector HR professionals at more than 500 manufacturing and 500 service-sector companies.

Mitch Beck, president of Crossroads Consulting in Monroe, Conn., has seen hiring pick up but notes that some companies are keeping quiet about it. "What I’m finding is that more companies are starting to hire back but don’t want people to know they’re hiring back, because they don’t want to get inundated" with applications, he says.

Not everyone is optimistic, however, that economic recovery will translate into more jobs. Scott Craighead, general manager, Americas, of Bluesky Executive Search in Fairfield, Conn., says that, in general, "Economic recovery has occurred without hiring increases, as companies have focused on staff cuts to yield profits."

Even if they aren’t cutting staff, companies may not be bringing new hires on board. For example, "Smaller hedge funds that need to hire are standing on the sidelines," says Ev Nucci, owner of Nucci Consulting Group of Gwynedd Valley, Pa., a retained search firm serving the hard-hit asset management industry. "A friend of mine who owns a hedge fund needs four or five people but is holding off" because of concerns about the economy, she explains.

Still, companies with skeleton crews can’t operate that way much longer, says executive search consultant Kevin Palisi of Norwalk, Conn. "You’re going to see more hiring because [companies] can’t squeeze any more blood out of the [surviving] workforce, from a productivity standpoint."


Leading or Lagging Indicator?

"This recession has decimated HR departments and, along with it, recruiting departments," Griendling observes.

Are reinforcements on the way?

Those who think companies plan to increase overall hiring in the near term believe so. For example, Mark Mehler, principal of CareerXroads, a staffing strategy consultancy in Kendall Park, N.J., says certain online companies "are hiring in volume." Those companies—and others wishing to add to employment rolls—must first hire recruiters, he explains, noting that "Recruiting is a bellwether for the economy."

Palisi also believes that organizations "are interested in bringing in recruiters in the near term, the anticipation being they will hire more staff in 2010." He adds that companies "need to hire recruiters six months ahead of the curve."

Others say companies will continue to make do with the resources they have on hand for a while and that an increase in recruiter hiring could actually be a lagging indicator of recovery.

"Usually the first person to get fired and last person to get hired back in a recession is the recruiter," says Dan Finnigan, CEO of Jobvite, a Burlingame, Calif.-based marketer of technology for recruiting via online social networks. "Many companies will actually not hire recruiters right away and be forced to recruit with a smaller recruiting team."

He cites a client—an online retailer—that hired 60 employees in six months during 2009. "They tripled [the workforce] and did it with one recruiter," he says.

Griendling notes that after a recession, companies tend to test the waters by hiring temporary workers as opposed to regular full- or part-time employees. And, in fact, the U.S. Bureau of Labor Statistics reported that 284,000 temporary-help jobs have been added nationwide since September 2009, including 48,000 in February. According to Griendling, it isn’t until later in a recovery, when companies start hiring non-temporary workers, that recruiters are brought on board.

Lisa Rowan, program director, HR, learning and talent strategies, for advisory services provider IDC in Framingham, Mass., expects hiring of temporary workers "to come up further before we see any surge in permanent employment."


Get in Line

Companies looking to grow their workforces may turn to transitional help, such as staffing agencies and freelancers, before hiring recruiters.

As piles of resumes roll into their headquarters, companies find it "easier to inundate an outside recruiter" such as an agency, according to Beck.

Staffing firms and consulting firms confirm the trend. Tracy Cutone, partner and general manager, Human Resources Divisions, of the staffing firm Winter, Wyman Cos. in Waltham, Mass., says demand for contract recruiters from its clients was up more than 85 percent between the third and fourth quarters of 2009.

Griendling adds that his company, DoubleStar, was hired by four new clients in a recent 60-day period, and it has its "largest new business pipeline in the last year and a half."

Freelancers may be in line ahead of staff recruiters, too. "Small to mid-size firms are bringing the search function in-house [by] hiring ex-search consultants to be their in-house recruiter on a contract basis," Nucci says.


A New Model

Another strategy being used as companies try to do more with less: Many are asking hiring managers and employees to take on more staffing responsibilities. Some experts believe this trend could continue for some time, so even after some semblance of a professional recruiting operation is restored, veteran staffing professionals may not recognize it.

"The hiring manager will no longer just be the end of the road for hiring decisions, but also the person identifying talent," Finnigan says.

"Hiring managers, although not experts in recruiting, will be forced to be," Salmon agrees.

Also taking on more recruiting tasks, according to Salmon, are ordinary employees in other departments. "Responsibility for recruiting has been pushed out into the organization," she says.

Finnigan calls it a whole-company approach to recruitment. "Employees will be called upon to make referrals and publicize jobs. Even executives will need to be on the front lines. … Referral hiring is the nirvana of recruiting," but it’s not easy. So, he says, companies are asking employees to tap into their personal online social networks. Instead of posting and advertising job listings, businesses are seeing if they can get their first round of applicants through referrals.

What is lost with this strategy, Salmon notes, "is the expertise in recruiting, particularly the recruiting of passive candidates" by staffing experts who have built their own, focused networks and developed the skills to manipulate them efficiently.

Using professional recruiters is still "the best way to find the right people," Salmon says.


Recruiting Recruiters, Finally

Eventually, organizations will become too lean. "Once it gets to that point, companies are going to realize that their people are working 24/7 and are maxed out on productivity," Craighead says. "When people scream and say, ‘I can’t take it anymore,’ they will have to hire."

He adds, however, that businesses are unlikely to rehire experienced recruiters back to pre-recession levels. "Companies will act cautiously in rehiring them," he says.

Finnigan concludes that companies are going to hire recruiters eventually, but not until after a lot of other things happen. "When you see that spike, you’ll know we’re in a recovery," he says.

In recovery, Finnigan predicts, the recession will leave a sharpened emphasis on the bottom line. "Before companies are going to build up recruiting staffs, they’re going to ask for the [return on investment] in doing so. … Before HR will get approval to hire more recruiters, they will have to answer the question, how much money must we spend?"

______________________________________

Steve Taylor’s most recent article for Staffing Management magazine, “Sometimes More Is More,” appeared in the October-December 2009 issue.
______________________________________

Reprinted with permission from the Society of Human Resource Management (SHRM) for inclusion July 15 - September 15, 2010. Taylor, Steve. "The Return of Recruiters". May 5, 2010. Accessed online at http://www.shrm.org/Publications/StaffingManagementMagazine/EditorialContent/Pages/0410taylor.aspx on July 15, 2010.

The End of a Decade, the Good Recruiter, and Technology


Author: Kevin Wheeler | Kevin Wheeler | ERE Articles
Date: C
Views: 2

Picture 2The first decade of the 21st century is ending in a few days, and what a ride it has been! It opened with the gloom of the dot-com bust and Y2K and ended with the gloom of a banking system bust and a major recession. It was not a good decade, as decades go.


How did recruiting fare over the decade? Did things get better for recruiters and candidates?


The decade began with the hope, maybe even the expectation among most recruiters, that the Internet would change things profoundly. Many of the writers and experts on recruiting predicted that candidates would be better served, that workloads would be more manageable, and that costs would go down.


As it turned out, neither the average cost per hire nor the average time to present a qualified candidate has changed much despite the introduction of all the tools that the Internet made possible. Applicant tracking systems were supposed to make it easier to keep track of candidates, present better candidates, as well as for a recruiter to qualify them. Yet, good candidates are rare and hiring managers complain regularly about seeing candidates who do not measure up to their expectations. Recruiters still can't find good candidates, even when they have stored resumes or contact data in the multitude of systems that have been created to make this easy. Communication — now so easy with email and CRM — is as bad as always. Candidates are complaining more than ever of being neglected, and most remain in the dark about their status.


Toward the end of the decade social networking appeared and became the new buzz. Recruiters had tools that would give them unprecedented access to candidates and make it much easier to create talent pools and stay in touch with candidates. Recruiters eagerly adopted Facebook, LinkedIn, Twitter, and other tools as the new panacea, feeling perhaps that if the Internet couldn't fix their problems, then social media would.


They too have been disappointed, because the Internet, applicant tracking systems, CRM, and social media are tools that enable knowledgeable, skilled recruiters to do a better job. They are not, in themselves, solutions to anything and will not magically make anyone a good recruiter.


So What Makes a Good Recruiter?


The best performing recruiters are those who have three characteristics: (1) they have a deep knowledge of the industry they are recruiting for; (2) they have built relationships with the right people; and (3) they have learned and practice the skills of good salesmanship.


Deep Industry Knowledge


There is a myth that anyone can recruit for any industry because the Internet and social networking tools make access to people and information ubiquitous and easy to get. There is some truth in this. Certainly having access to resources such as Hoover's and Wikipedia helps. The ability to scan hundreds of newspapers and news sources can generate leads and provide insight into what is happening in an industry. It is possible, with lots of time and energy expended, to put together a list of people to contact and screen. But how to screen and what to ask then becomes a bigger challenge, one not easily bridged with technology.


Investing in learning about and digging deeply into an industry makes all the difference. Nothing replaces years of interaction with a spectrum of people in an industry. I spent almost 20 years in the high-tech, semiconductor industry, and through those years built technical, cultural, and personal knowledge and contacts that made it much easier for me to find people, get referrals, assess referral quality, interview candidates, ask the "right" questions, and provide hiring manages with much better potential hires than someone whose only knowledge of the industry is the Internet and few phone calls.


Never underestimate industry knowledge and experience as a major factor in recruiting success. The Internet and other tools make it much more convenient to stay in touch and maintain relationships, but they do not by themselves make anyone a good recruiter.


Relationships


Most successful headhunters and executive recruiters will tell you that their success comes from who they know. When an opening comes across their desk or computer screen, they can reach out to someone for a referral or as a potential candidate. Rarely do these people have to use exotic Internet search techniques. They have spent time getting to know well-positioned people who can provide information and give them leads. These leads, combined with industry knowledge, make decisions faster and easier.


I believe that it is here where recruiters can use the Internet to their advantage. Recruiters who build talent pools or communities put in place good rules for who gets invited into the community, and using the communication tools that now exist (IM, email, CRM, etc.), can build good, virtual relationships with many people. Unfortunately, few recruiters take the time to invest in learning about the people in these communities. They tap into them only once in awhile and spend more time adding people to the community than they need to.


Practice Good Salesmanship


Recruiting is sales. It's that simple and anyone who expects to succeed in any decade has to understand this. Good salesmanship is made up of industry and position knowledge, a belief that what you are selling is valuable and exciting, an ability to understand the candidate and what his or her needs and interests are, and the skill of closing: overcoming objections and coming to agreement.


These are tough skills to develop. They take years of practice. Good recruiters are coaches, consultants, and psychologists. They need to not only sell candidates, but also hiring managers and only a small number of recruiters are good at this. Lack of salesmanship is the greatest weakness in our profession.


I cannot build a house no matter what tools you give me because I lack basic knowledge of carpentry. I cannot operate on your body, fly an airplane, or build an integrated circuit because I have no basic knowledge and no skills in these areas.


Technology is wonderful and I am an advocate of using every tool there is. I think the Internet, social networking, and all the other pieces of technology are game-changing for our profession. But, only if they are applied by people who have the basic skills of recruiting. My hope is that in this dawning decade experienced and skilled recruiters start to leverage these tools wisely and that we begin to improve the basic measures of time, cost, and quality that have eluded us this decade.


URL: http://www.mntrn.org/modules/planet/view.article.php/2583
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