How To Identify and Select The Best Recruitment Partner

In a world where unemployment is effectively zero, the amount of companies hiring outnumbers the amount of people actively looking. Because of that, recruiters, both internally and externally are in high demand. However, since the barrier to entry in recruiting is minimal the challenges or stresses associated with “Which firm should we use for this search” is at an all-time high.

Now I might be biased because I believe Russell Tobin is the greatest recruitment firm there is, however, contrary to my own beliefs, there are several things we do well, and a number of things we don’t do well. This is common with many firms so one asks the questions, how can we find, filter, and make sure we select the most appropriate recruitment agency for our need.

1.       Recommendations

The first step I’d recommend is ask for recommendations from the people who know the space and have used recruiters for their own search personally or when hiring in the past. The one caveat I’d like to add is make sure you are drilling down to something as closely correlated as possible. It’s not advised that you ask the technology leader if your search is around sales nor asking your West Coast Marketing lead for a Miami based administrative job. Recruiters, even the absolute best ones are extremely niche in the types of companies they work with, locations, and job functions for which they support.

2.        Research

If step one is done properly, step two might not even be required. However, recruitment firms aren’t static which means the recruiter who placed Susan in a sales role last February might not even be at that same recruitment agency which could drastically change your mindset on a partnership. Plus, when done correctly it’ll arm you even more question when you reach out to the recommended firms. Good places to look are LinkedIn, Glassdoor, Google Reviews, and of course the company’s website. On the website piece, it’s a good idea to peruse around and investigate. If they reference clients, are they similar in size? Do they operate in a similar industry? What about the jobs posted on the company’s page, are they closely correlated to the one you are about to conduct?

3.       Vetting and Qualifying A Short List of Recruiters

Assuming steps one and two are done properly, you should have a list of 3-6 companies to reach out, screen and see which one is best for you. The assessment on which company to use should begin from the first email or call you make. After all, the journey you are taking is similar to the initial part a candidate will take when dealing with this company/recruiter so you should feel warm and fuzzy. If the company you reached out to is short or off-putting, rest assured they will probably be giving off that same vibe to the candidates they will interacting with while being a representation of your company. If possible, aim for an in person meeting or video conference. Remember, this company or person will be representing your firm so you should not take this step lightly. I don’t know about you, but if I was writing a check to somebody north of $10,000, I’d probably want to at least look them in the eye and shake their hands.

During the meeting or call, here are a handful of questions to ask:

Could you give us an overview of the company you work for

Yes it’s vanilla but it also starts to showcase how they will pitch their own firm. Remember, they will be selling your company so if they can’t sell their own brand, please do NOT move to phase two.

How do you fit into the company/what is your specialty?

This is the recruiters opportunity to showcase how close their work meshes with the project or search in question. Beware of overly generic or broad answers. Think about this, some law firms and hospitals have thousands of professionals, but all have a particular focus. Would you hire an M&A attorney who works with media companies to do your financial services company’s tax work and expect the same results? Would you hire a back surgeon to repair your knee? No, for that reason alone you should make sure the recruiter has a focus and it’s in the area you are in and need. We recommend that you focus or inquire about the industry, location, job function, and level for which they specialize in.

How do you identify and surface candidates?

A loaded question, perhaps, but this should give you an idea of where they will look and what message they will send. Beware of the company that vomits up stats about a database or network of people. That might play some value but a better story or question that needs to be answered is “Why would a candidate listen or respond to your email/call versus mine or another recruiter.”

What are similar firms you've worked with or searches you’ve done in the past 12 months?

To me this is a must. If they can’t answer this then MOVE on. Like question two, these searches should be as closely correlated to the one you are conducting. At the end of the day, recruiters are revenue driving professionals, so they may yes you to death with the hopes of figuring it out later.

May we contact a firm or candidate you’ve worked with and placed?

The silver bullet. If the prior question with a comforting response, ask to validate the experience of both the candidate or recruiter. Be wary of the “that search was confidential” or “We can’t disclose our clients.” That might be the 1/10 case but if they are truly a specialist they should have a list of 10-100 happy clients, not just one. Since I’m an analogy guy (if you couldn’t already tell) would you hire somebody to redo your house that couldn’t reference or show you another house he’s done? To quote Kevin McCalister “I don’t think so.”

Retained, Contingent, or RPO – what type of method or pricing do they recommend for this particular search or project?

• Retained Search – this will usually be the norm for director level or higher searches ($150,000 base salary and up) but not always needed. If a retainer is proposed it’s usually broken down into an upfront fee and succession fee (when completed). If you are certain you are picking the right firm go this route. It creates a mutually beneficial partnership and a we are relying on you to get this job done mentality.
• Contingent – this type of method is usually used when a firm is getting an influx of candidates, but they aren’t sure they are getting the right types of enough needed to get the person quickly. In short, the opportunity cost of not having this person is great so the quicker they can find somebody the better. It’s also used in a scenario where companies are partnering with more than one search firm. For the love of god, do not go in with the mentality of “we’ll use everybody.” That’s a dated methodology and will result in massive confusion on candidate representation, candidate experience, compensation and will without a doubt surface issues later in the process. Plus, your better firms won’t make it a priority as it’s not a mutually beneficial relationship. It reminds of the old saying “When it’s everybody’s responsibility, it’s nobody’s responsibility.” Pick 1-2 tops, if one or both can’t deliver, remove and add another the following week(s).
• Recruitment Process Outsourcing (RPO/Project Based) – this comes in handy when a firm is looking to hire an abundance of people, want’s to get aggressive as possible on pricing and take a more project focused approach. Usually this comes in the form of an upfront or rolling monthly retainer and some type of completion fee or agreed to success (ie. We’ll place 10 people in the first 90 days).

How much will this cost me?

Ok, I’ve used the silver bullet term, so let’s call this the golden bullet. Let’s face it, if you’ve gotten to this point you must feel pretty good about partnering with the company or recruiter you are in conversations with. Please, don’t go through all the aforementioned steps and fall out of your chair when they quote you 25-30%. A highly recognized firm with an area of focus that aligns exactly with your needs should be realized and more importantly, appreciated. If you’re trying to compare the one man operation in Florida who’s only done two human resource searches in his entire life to the company that resides in your area of need and has placed hundreds over the year, don’t. The latter should be and most likely will be more expensive as the value and speed for which they will deliver on is tenfold what the person in Florida will give.

At the end of the day, you should select a partner you are comfortable in dealing with, has expertise in the area(s) you are hiring within, and has a strong reputation in the market with both clients and candidates. Price may be a factor, but it shouldn’t be the end all be all. You are hiring people who will shape the future and potentially transform your company forever. Now is NOT the time to make decisions strictly based on price or not do your diligence, after all the future of the world your company, depends on it.