Recruiting activities have been slow as of late and like most of my clients, I have become more focused on my own operating budget. Now that I have fully accepted that cost consciousness is the new normal, I’ve done my part and have successfully completed my personal and corporate tax returns. That’s right, I did it all by myself!

Lucky for me, I discovered TurboTax. This is not a plug for TurboTax (Monster), but it is certainly a solution to a complex task (Sourcing) that was always handled by my Accountant.

Here is the bottom line: Without assistance, I was able to complete both returns just by following TurboTax GPS like instructions (on-line app) of inputting the information as instructed. The system did all the work: it downloaded and indexed the numbers directly from my accounting software (ATS), searched for additional eligible deductions (job Boards), reviewed and e-file the completed tax returns to the IRS (Placements). I did a side-by-side comparison with last year’s return which was completed by my Accountant, and nothing appeared out of the ordinary. Here is the surprising part; it only cost about $200 (Job Posting fee) compared to $5000, the amount my accountant (third Party Recruiter) would have charged.

Would I ever use my Accountant again?

Only if I had a really complex problem that TurboTax couldn’t handle!

Can you see where I am going with this?

This is also HR’s perception of the recruitment process for hiring top talent: They expect recruitment to be fast, easy and cheap. This automated concept has also eroded the value of Third Party Recruiters effectiveness. TPR, they believe are charging a ridiculous amount of money to provide a service that can now be completed in-house with little training or assistance.

So, you are probably wondering; how can a TPR embrace a concept that saves money in his business but does not embrace that same concept when it is applied to his clients’ business!

The short answer is that the CFO of most firms may also use TurboTax to complete his personal tax returns, but it is highly unlikely that he would recommend TurboTax instead of a professional CPA or Auditing firm for corporate matters

IMOP there are certain functions that I will continue to outsource simply because it makes economical sense, especially when I lack the confidence, tools and technical hands-on experience of a professional. A good example would be auto repair, electrical work, or even lawn care.

There are certain type jobs that should be completed in-house, specifically lower skilled personnel, reoccurring support level and entry level, which account for about 80% of the work force. The other 20% should to be outsourced, specifically the highly in-demand, short supplied skilled executives in the Industry. They are game changers, the intellectual capital who essentially pays the agency fees by producing more revenue or reducing cost and are instrumental in attracting other top talent to their new employer.

If your HR recruitment process is designed strictly around cost reduction (agency fees), it is costing more money in the long run. It is a passive candidate killer; it doesn’t have a GPS app that can successfully guide you in recruiting top talent which is the engine for achieving success in your business.

There have been indications that the need for agency search assistance is on the rebound along with the recovery from the recession. Recently a number of our clients have reached out to us indicating that hiring managers have become frustrated with the HR recruitment efforts. They are seeing heavy resume flow, however not enough quality candidates for their open positions. And the few qualified candidates are not making it through the entire interview process.

There are three things that you must do to achieve success in your internal recruitment efforts:

  • HR must regain their trust in TPR partners and allow them access to the hiring managers for direct communication, interview feedback and professional guidance throughout the interview process. It is very difficult to find the right candidate and sell the job opportunity just by reading a job description, and most likely the right candidate for the job can be found in the hiring manager’s mirror.
  • As Kevin Wheeler stated in a recent article, TPR must transform into “T” Recruiter, having dept in recruitment fundamentals and reach in technology and industry knowledge to be effective and add value. The recruiters that are still in the business today, most likely posess those traits!
  • Both HR and TPR must understand that job boards are the main divider that stands between them as partners in the world of search. The job boards are selling TPR and HR the same product while whispering a different message in each other’s ear; telling TPR how they can make easy placements and earn huge commissions and HR how they can save boat loads of money on agency fees by buying their product.

It is very easy to evaluate talent that wishes to “walk-on” to your team, but it becomes very complex to recruit top talent away from another team, not even with precise GPS guidance.

Views: 150

Comment by Saleem Qureshi on February 18, 2010 at 1:24am
Good job Ken! Succinct and well put..I want to more emphasis on TPR must transform into “T” Recruiter, that's true, as the rapid evolving of technology, recruiters need to keep an eye on upcoming technology, and gain hands on experience on new recruitment technology to recruit great talents.

Another valid point you made that both TPR and HR departments must come on a mutual consent that how to reduce their recruitment costs, as both have the same goals. Investing in recruitment effectively can increase the operational efficiency of the company.
Comment by Paul Alfred on February 19, 2010 at 4:49pm
The sad reality is that many HR Departments within Companies are building there own HR Recruitment Teams where they become internal business partners with the Hiring Sponsors. TPR's are getting very little access to decision makers. Driving the cost per hire up in the end ...
Comment by bill josephson on February 22, 2010 at 11:37am
However the techniques HR is using to find people, I want to work differently finding other people than they do. It's not just passive candidates I look for cause HR can find those, but passive Invisible candidates.

The problems are there are few of them, time required to locate them, and when found they're tough to move--specially in this economy with few local candidates, relos with underwater mortgages/anchors to the area, economic uncertainty, giving up pensions for 401Ks, client company salary constraints, etc...

If they're easy to fill, TPR's generally don't receive the assignment

Comment by Charles Van Heerden on February 22, 2010 at 6:31pm
Companies and HR departments rely on recruiters to help them find good talent. As a corporate recruiter I have always needed TPR's to find top level talent.

Recruiters are well positioned to leverage their relationships with placed candidates and to maintain a link with candidates, to develop new relationships with other managers. Too often the short-term focus is on selling, rather than on developing a good network to increase their share of recruitment with the business in the long-term. Unfortunately few recruiters do this well.


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