War of SURVIVAL - New Erena

It seems like the recession period will stay longer than expected, and everybody is getting affected drastically. The companies are finding out all possible ways to cut down their expenses to sustain this pressure. They are laying off as much human resource as possible, and the result is obviously a flood of available skillful person and hard to find jobs!

Recruitment has probably entered to its darkest arena. Instead of having competition of finding the quality candidates, now the competition is to find out the clients who are ready to afford the recruiters and the recruiting fees. Unfortunately, I've seen quite a few recruiters thinking and finding out the alternate ways of earning, which is really saddening, not only for the recruiters but also with a sacred profession like Recruitment.

Now the question arises, Is there any potential in Recruitment. or should we find out the alternatives? Answer resides in a simple question:

Which way will our economy lead us to?

I believe that we'll have to have a closer look on the specific arenas which will be less affected. For example, would the hospitals be closed? Would the patients stop getting ill? The answer is NO.

So it's better to work smartly at this moment instead of running away from this profession. Recruitment is a name of challenge, and we will take it as a challenge!

What do you think???

Regards
Simon Jones

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Replies to This Discussion

Permalink Reply by David M Pulse on January 23, 2009 at 9:23am

Simon,
I have been recruiting for many years and have been thru this same economy trend in the 80s. I remember when IT people were the pizza guy at your door the along came the 90's boy what a time to be in IT. The 90's broght the EE pizza guy. I am a recruiter I will live in any economy. I have learned that recruiting is one of the lowest paid easy work and the highest paid hard work so this time in America and many other countries we must work smart and hard plus this helps weed out the people that said they were recruiters when times were easy. I look forward to this time of purging and the oppertunity to clean a few out.

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Permalink Reply by Michael Saulnier on January 26, 2009 at 12:38am

I came up on the "contract staffing" side of the business... and these times invariably favor contract over direct placements.

- The clients often don't have budget or headcount to add direct employees... but they still have work they must get done.

- Clients shouldn't and most don't hire contractors directly. If they do, they open themselves up to employee reclassification, insurance issues, and more... they need a third party to represent, employ, and pay the contractors. On the other hand, with so many "permanent" employment candidates in the market... many of whom are highly talented people laid off due to blanket cuts... the clients enjoy a much greater pool of qualified direct hire candidates.

- Contract to hire really makes direct hires easier for clients. By essentially paying the placement fee over a 6 month to 12 month period, clients often get around paying a large one-time fee.

- Contractors generate ongoing cash flow. With just a few contractors on billing, a full desk recruiter can make $4 to $6k per month... every month the contractors are on billing. I've had contracts go for YEARS... although some do end in months.

- The hiring process is faster. Contractor placement is more like a date than a "perm placement" marriage. Both sides don't fear committment as much, and both tend to make their decision process much more quickly.

staffUP has worked with thousands of indepenent recruiters for over 12 years providing everything they need to add contract staffing to their direct hire business. We deliver everything needed... the money, the employer of record and insurance, the back office invoicing and collections, agreements... it's turnkey.

We've helped many people get past the fear of the unknown, and we're sending some recruiters over $20k, every two weeks. There's no upfront cost, all the lending is based on your client, not you.

If you would like to learn more... contact me

Michael Saulnier
staffUP
877-482-8777
staffUP @ staffUP.com