Tuesday, 10 May 2011

Save a fortune on recruitment costs

You want to save on recruitment costs?

Simple. Hire an intern and give them the job description of every new recruit you want to find, give them a Premium LinkedIn account and then get them to contact all those whose profiles match and get them to send in their CVs.

Welcome to the world of high powered, expensive headhunting firms.

Surely that's not what these guys use? LinkedIn?

Oh yes. LinkedIn has is being valued at $billions for a reason. It's the recruiter's paradise. By the same token, anyone who wants to have their profile matched to new positions out there, LinkedIn is the perfect starting point because that's where all the most expensive, seemingly expert headhunters start from - earning fees from 20% upward to 100% of first year remuneration. Sure, they may do some steps afterwards to try to justify their fees, but rest assured their starting point is the same.

For the most part, recruiting firms do little more than what I have described above. Most candidates that get a first interview have rarely met the recruiter who has sent them and at best you may find that a cursory telephone interview has been conducted by the recruiter. Most simply cut and paste the candidate's CV onto headed paper and then seize upon a few points in the CV to justify their reason for sending the candidate along.

Few, if any, will have at that stage checked the candidate's credentials like their education, job tenures and achievements. Going down the line, recruiters usually absolve themselves of any any responsibility for cross checking the information in a CV and certainly they would be unlikely to take up references.

The fact is, beyond sourcing the candidates, little value is added particularly in the modern day Contingent Recruiter for fees up to around 33% of first year salary. And given the source is common to nearly all recruiters, virtually free via LinkedIn, then it is very difficult to understand why firms would pay such incredible amounts of money.

So why not cause a revolution and save yourself some money and hire your own research staff for little money? You would be surprised to find how easy it all is.

Then reinvest the money you save in a few shares of LinkedIn when it goes public, perhaps.

- Posted using BlogPress from my iPad

No comments: