R.I.P. Recruitment Search Agencies. Thank you for all your contributions but you will not be missed

Why would I write a post about the death of agencies when they are still active and a valued part of many companies budgets and recruitment process? That is a very insightful question and one the deserves a well outlined response.

First, on behalf of all the companies both small and large, thank you from the bottom of our hearts for the thousands of valuable human capital assets provided over the years. Those assets have provided us with innovation and productivity that have helped carry us onto the next phase in our evolution. It is with a deep heart that we say goodbye.

We will miss the gift baskets around the holidays, the 30,000 dollar vouchers, the feeling that you were our best friend in the world, and the comfort of knowing that you know our business, roles and products. It was a warm feeling that still provides chills at night.

Now, is the part of the broadcast where we explain why the demise is near.

1.) A growing number of organizations are developing dedicated strategic sourcing teams to pipeline current and future talent needs. These individuals blend a balance of talent acquisition and marketing to develop processes around finding and attracting talent. Utilizing Boolean search string technology, developing and managing talent communities, adapting targeted email campaigns, CRM tool tracking, and cold calling, it is only a matter of time before the church bells chime and we mourn the passing of agency fees

2.) Internet connection tools powered by sites including Ping.fm allow us to brand out opportunities to thousands upon thousands of people within seconds. Just yesterday, Recently, a tweet with a URL description was sent through Pluggio.com and with the integration of Ping.fm, the tweet went to Flickr, Yahoo Profile, Google Buzz, Delicious, Yammer, Ning, Twitter, Facebook and Myspace and that was only the tip of the iceberg. Why Flickr and Delicious. Networking is no longer using professional communities as a way of finding talent. How many of us have Amazon or Barnes and Noble accounts and followers of our books lists. Talent can be found under many more rocks than ever before.

3.) Macros and schedulers are alive and well. Software like IMacro, Pluggio and Tweetdeck allow us to not only tweet and post jobs to Twitter and Linkedin but they allow us to schedule how often we post them.

4.) Cost effective partnerships – Tweetmyjobs tweets 1.2 million jobs per day and they have accounts that send by region and discipline. Oodle.com posts roles to over 100 sites including Myspace and Facebook for free. Twitres.com allows you to post resumes or jobs for free and re-tweet as often as you like.

5.) Talent Communities – Companies are taking advantage of LinkedIn Groups, Google Groups, Yahoo Groups and many others to build talent communities for networking and maintaining contact with potential future talent.

6.) As social media is making bringing the world closer together networking and referrals are a more valued asset.

7.) Many companies are building alumni talent communities and even offering referral bonuses

8.) Blogging, live chat and fan sites are allowing companies to talk to customers, vendors and candidates and educate them on culture, product/services and solicit information. As candidates become more involved, their sense of value will grow and thus their interest in the company.

9.) Mobile campaigns are taking the number communication media in the world and reaching out to the associates of tomorrow.

The evolution is here. As we step into a new age of cost effective operation, efficiencies of process are spurring out. To the victor, companies will rise again. To the search agencies, R.I.P.

The thoughts and recommendations in this article are my personal views. There is no employer or organization affiliation with the data or recommendations presented in this
piece.

Comment by Brian K. Johnston on October 20, 2010 at 4:46pm: Hey Slouch- I am on your side, and you have built an AMAZING platform here... My intentions were not to offend you... More of a slant on the author (or lack thereof)

What the whopping (3) 1st levels connections means is Mark A. Leon has ZERO relevence...

I said it once, and I will happily say it again.... THIS ARTICLE IS GARBAGE!

Best to you, Brian-

Comment by Jerry Albright on October 20, 2010 at 4:49pm: I don't think you have to be on Linked to be relevant. One of the recruiters working for me has only recently begun to learn the tool - but he's been relevant since 1984.

Comment by Jerry Albright on October 20, 2010 at 4:54pm: I'm working on a blog right now that talks about how letting women into the workforce has ruined our economy over the past few decades - should be a pretty big hit. I need to get back on top here.......

Comment by Brian K. Johnston on October 20, 2010 at 4:57pm: Jerry- You are right about that....There are exceptions to the rule... The Incompetent Content+ZERO relevance on #1 Business/networking social networking site= GARBAGE.

Brian-
PS SEO SEO SEO

Comment by Neil Lebovits on October 20, 2010 at 5:36pm: Hey , Jerrry A great to see you on here.. Well, I spent 2 full days at their conference. If you ask what you get for a $19,250 membership fee (and that is max, not minimum), then why don't recruiters ask what they get for the 50 or 60k membership fee that they charge as the commission take? front office system? some training? monster, etc? it's the same thing. they offer all that most firms offer and provide the full back office processing, current state of the art technology etc.. It's silly to me that recruiters will allow people to take half of their billings for a desk and such when the internet allows all to do it from home... I'll be supplementing barb bruno btw :-)... seriously, then take a look at folk who work remotely for other firms.. they work on their own and have to do their own stuff and maybe take home 60%... that other 40% is the rate that these firms charge. It's nuts... make sense?

Comment by pam claughton on October 20, 2010 at 7:00pm: Neil,
I have to agree with Jerry on this. I don't see what one gets for nearly $20k either frankly. You can't compare it to paying 50% to an agency, because the whole benefit of working at an agency is that you work side by side and learn from senior recruiters and you leverage each others activity. Theoretically you can play with the 'network' at something like AgentHR, but it's not the same as when you are sitting next to someone and really have the pulse on how hot a req is. For less than 20K a person can buy access to Monster and other boards as well, including Zoominfo. Online training is available widely on the net for a fraction of the 20k. It's simple to hook up with a good back office firm, I use ECS out of Binghamton, NY and they're fabulous...and they don't make recruiters wait for the client to pay, which is huge. I get weekly deposits at the same time that my contractors do. Also, most agencies offer base salaries or draws against commission as well as paid benefits for full-time employees. I investigated AgentHR years ago when I went on my own, and frankly didn't see that the ROI made sense.

Comment by Neil Lebovits on October 20, 2010 at 7:24pm: Well. I can tell you, having met 25 of the agents, that they love it. Many firms don't have too many people to learn from and also allow people to work from home and thus dont get that learning element... One gets the branding and brochures, etc.. benefits of a woman owned company and ability to sign national agreements, etc.. It's not for all. If someone wants to investigate all of the items needed, they can save a few bucks. There are also plenty of split networks ,etc, but the agents of ARG feel more like a team than people who meet at another conference, etc. They have come a long way..

Comment by Neil Lebovits on October 20, 2010 at 7:28pm: PS. Draws and base salaries are just a very very very high interest loan. that's also the way us executives and owners looked at it, hence why we fire people quickly if we don't get the return... Benefits are also the only real cost and it can be bought online pretty cheaply. Again. I am referring to the person who bills 100k-300k in a firm and for all of these benefits you mention, pay the company 60-180,000/ year for them.. I hear you, for sure.. I just don't get why people put up with that.. If one wants the ease and turnkey set up this is a great option. Those to afraid to go on their own will stay with the firm and wont do what you did, Pam..

Comment by Paul Alfred on October 21, 2010 at 7:44am: @ Brian ... Can you share some insight as to why you feel Mark's Blog is Total Garbage ... I am an old school Headhunter who happens to have a technical background and I also use the tools Mark talks about in the Passive Candidate Market ... Id love to get your insight perhaps there is something I can learn ..

Comment by Brian K. Johnston on October 21, 2010 at 9:16am: @Paul "(3) Linkedin Connections Mark A. Leon" has Excellent "Writing Skills" but the author is taking an "expert positioning" on the "Future of Third Party Recruiting". I am "fairly" technical too, and when someone makes the bold statements he makes, I have tools to very quickly get "intelligence" (I WANT PROOF/NOT TALK) on someones background, and I can tell you this. THIS GUY HAS ZERO CREDIBILITY TO BE MAKING STATEMENTS LIKE HE HAS MADE IN THIS IRRESPONSIBLE BLOG POST... I know CXO level folks at his company, and I am going to be monitoring this BLOG to ensure he does not hurt there brand anymore!!!

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