Comments on: Is the Business Model for the Corporate Recruiting Department Fundamentally Flawed? http://www.ere.net/2006/06/09/is-the-business-model-for-the-corporate-recruiting-department-fundamentally-flawed/ Recruiting News, Recruiting Events, Recruiting Community, Social Recruiting Tue, 09 Mar 2010 22:16:11 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: Leif Wennerstrom http://www.ere.net/2006/06/09/is-the-business-model-for-the-corporate-recruiting-department-fundamentally-flawed/comment-page-1/#comment-1848 Leif Wennerstrom Thu, 03 Aug 2006 04:05:00 +0000 http://www.ere.net/2006/06/09/is-the-business-model-for-the-corporate-recruiting-department-fundamentally-flawed/#comment-1848 Lou, I have been on both sides of the fence and today only take revenue generating contract corporate recruiting assignments that look and feel like an 'volume' executive retainers: I deal with sales executives ($200K OTE +) where the value of the hire has a direct impact on the bottom line so your can represent yourself like an executive search consultant(Time to fill for a sales role is much faster that a business unit executive-but total cash comp, and previous year W-2 earnings dwarf some executive level comp plans: 10% of one of my last client's sales force W-2ed over $1M as an individual contributor). With sales executives,time and quality always outweigh cost: similar to how C level executives see retained search-. In this model, the company wins by buying an 'A' rolodex from an 'A' recruiter in the industry who is selling his/her best people on this particular company. The A recruiter still can work other candidates outside their priamry client because they know the industry AS LONG AS THEY ETHICALLY REPRESENT BOTH PARTIES. The ethics are clear: only consider split arrangements when: 1. The candidate does not get the position with your cleint 2.Your candidate agrees to the reccomendation. Lou,

I have been on both sides of the fence and today only take revenue generating contract corporate recruiting assignments that look and feel like an ‘volume’ executive retainers: I deal with sales executives ($200K OTE +) where the value of the hire has a direct impact on the bottom line so your can represent yourself like an executive search consultant(Time to fill for a sales role is much faster that a business unit executive-but total cash comp, and previous year W-2 earnings dwarf some executive level comp plans: 10% of one of my last client’s sales force W-2ed over $1M as an individual contributor). With sales executives,time and quality always outweigh cost: similar to how C level executives see retained search-. In this model, the company wins by buying an ‘A’ rolodex from an ‘A’ recruiter in the industry who is selling his/her best people on this particular company. The A recruiter still can work other candidates outside their priamry client because they know the industry AS LONG AS THEY ETHICALLY REPRESENT BOTH PARTIES.

The ethics are clear: only consider split arrangements when:
1. The candidate does not get the position with your cleint
2.Your candidate agrees to the reccomendation.

]]> By: Mitchell Byers http://www.ere.net/2006/06/09/is-the-business-model-for-the-corporate-recruiting-department-fundamentally-flawed/comment-page-1/#comment-1708 Mitchell Byers Fri, 09 Jun 2006 04:08:00 +0000 http://www.ere.net/2006/06/09/is-the-business-model-for-the-corporate-recruiting-department-fundamentally-flawed/#comment-1708 Once again, Lou raises the bar for recruiters. Often, we allow ourselves to simply be viewed as administrators. With all the job boards and email blasts, it is no wonder. Without a strong vision or clear corporate strategy, corporate recruiters, by default, 'handle too many requests for too many positions.' That is not much fun, whether you are a corporate or contingency recruiter. Lou's challenge to examine the underlying business model of the corporate recruiter department is right on. In addition to his suggestions, corporate (and the rest of us) recruiters can take the advise of Jeffrey Fox in his book, THE DOLLARIZATION DISCIPLINE. Fox suggest that we dollorize our services or products in terms of precise dollars and cents - that is, think through and then present what dollar value we are truly providing to our customers. Fox provides many useful real world examples of his sound theory. The results are staggering. Different recruiters (corporate, contingency, retained) bring different, but equally important value to organization. Lou's suggestion of a balanced or blended approach could effective leverage each group's values. It is really us to each of them, and each of us, to make sure our value is crystal clear. Once again, Lou raises the bar for recruiters. Often, we allow ourselves to simply be viewed as administrators. With all the job boards and email blasts, it is no wonder. Without a strong vision or clear corporate strategy, corporate recruiters, by default, ‘handle too many requests for too many positions.’ That is not much fun, whether you are a corporate or contingency recruiter.

Lou’s challenge to examine the underlying business model of the corporate recruiter department is right on. In addition to his suggestions, corporate (and the rest of us) recruiters can take the advise of Jeffrey Fox in his book, THE DOLLARIZATION DISCIPLINE. Fox suggest that we dollorize our services or products in terms of precise dollars and cents – that is, think through and then present what dollar value we are truly providing to our customers. Fox provides many useful real world examples of his sound theory. The results are staggering.

Different recruiters (corporate, contingency, retained) bring different, but equally important value to organization. Lou’s suggestion of a balanced or blended approach could effective leverage each group’s values. It is really us to each of them, and each of us, to make sure our value is crystal clear.

]]> By: Jeremy Langhans http://www.ere.net/2006/06/09/is-the-business-model-for-the-corporate-recruiting-department-fundamentally-flawed/comment-page-1/#comment-1703 Jeremy Langhans Fri, 09 Jun 2006 01:30:00 +0000 http://www.ere.net/2006/06/09/is-the-business-model-for-the-corporate-recruiting-department-fundamentally-flawed/#comment-1703 Lou, Good article, as always! I really enjoyed your support of CRM (read: A strong sourcing team using CRM and drip marketing allows for the building of strong pipelines of potential candidates to handle future needs more quickly.). Even though I'm a huge proponent of CRM, it is key to remind our Industry that 'garbage in, garbage out' ... in other words, Talent Acquisition Technology alone will never solve our business model issues (not to mention the lack of good leadership in Recruiting). It is critical to the success of any Corporate Staffing Department to have both the right information in their systems and the right people cultivating that information. I like to use the farming analogy ? crop rotation, seeding, watering, sunlight, harvesting, etc ? all works when speaking about the overall strategies we use. If you cheapen the process by using artificial fertilizers, low wage ?farmers?, and continually try to harvest the same little plot of land; you will, in the midterm even, find yourself with a big pile of dirt and rocks. What are your thoughts? Have a GREAT morning my friend, ~Jer. www.o0.typepad.com Jeremy Langhans Jeremy@jeremylanghans.com Jeremy Langhans & Associates Orange County, CA 949.872.2328 Lou,

Good article, as always! I really enjoyed your support of CRM (read: A strong sourcing team using CRM and drip marketing allows for the building of strong pipelines of potential candidates to handle future needs more quickly.). Even though I’m a huge proponent of CRM, it is key to remind our Industry that ‘garbage in, garbage out’ … in other words, Talent Acquisition Technology alone will never solve our business model issues (not to mention the lack of good leadership in Recruiting).

It is critical to the success of any Corporate Staffing Department to have both the right information in their systems and the right people cultivating that information. I like to use the farming analogy ? crop rotation, seeding, watering, sunlight, harvesting, etc ? all works when speaking about the overall strategies we use. If you cheapen the process by using artificial fertilizers, low wage ?farmers?, and continually try to harvest the same little plot of land; you will, in the midterm even, find yourself with a big pile of dirt and rocks.

What are your thoughts?

Have a GREAT morning my friend,
~Jer. http://www.o0.typepad.com

Jeremy Langhans
Jeremy@jeremylanghans.com
Jeremy Langhans & Associates
Orange County, CA 949.872.2328

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