Proper Procurement: Making Hiring Processes that Work

When you want to hire talent for your team, so many factors can influence success. In our work we find that the most successful processes hinge on a solid partnership between us and the client, based on trust, mutual respect and an unwavering commitment to finding the right person for the position in question.?

When it doesn’t work, we see issues coming up again and again, based on a number of factors which often push against the process and risk derailing it entirely. Typically, this comes from procurement trying to adhere too closely to vendor management guidelines. What are the issues, and what can you do to avoid them?

Cost-Cutting Obsession

The relentless pursuit of the lowest possible commission will invariably drive the market into a race to the bottom. Even when you have terms of business with a client, it’s not unusual for them to ask for cheaper rates. Generally this request comes from HQ, with limited visibility on the challenges that come with recruitment in Japan.?

It's completely sensible to want to manage costs, but reducing recruitment to a mere numbers game is usually counterproductive. Particularly for senior roles, what we are doing is more than just posting a job and waiting for applications. What may be misunderstood is the power of the consultant’s network and access to passive candidates. A good shortlist doesn’t just appear with the wave of a magic wand overnight. It takes a significant time investment from the recruiter.

The best recruiters, who know their worth and what it takes to find the perfect fit, may walk away when asked to work for cheaper. Do you want to take the risk of losing a valued subject matter expert for the sake of a few percent??

SUGGESTION: I urge Japan-based people to explain to their HQ/regional counterparts why fees are higher in Japan. Give facts - what percentages, on average, do your suppliers charge? What seems unreasonable for them is probably a fair deal here in Japan.

Changing the Rules Mid-Game

Another challenge comes when procurement suddenly decides that previously agreed-upon terms of business are no longer valid. Imagine you’ve spent weeks or months building a relationship with a recruiter, negotiating terms that both sides find fair. Then, further down the line, the preferred supplier list is redrawn, often without notice.

There are a lot of recruitment companies out there, and it’s understandable that businesses want to streamline their processes and minimize how many vendors are “on the list”.

This can strain the relationship between the company and the recruiter, making it harder to attract top talent. Recruitment agencies may be less willing to prioritize your searches, or worse, they might refuse to work with you altogether. This kind of disruption can lead to significant delays in filling critical roles, all because of a short-term focus on cost rather than long-term value.

SUGGESTION: consider alternatives, such as retained search. At least, triage your agencies by job function: one may be better for finance, another for sales, and another for IT.?

Missing Out on Great Talent

One of the most frustrating scenarios we see is when good candidates can’t be met simply because formal terms of business aren’t in place. The consultant has found a great candidate, but the hiring manager can’t meet them because procurement hasn’t finalized a contract. This is especially damaging when there’s no existing candidate pipeline, so the introduction from the recruiter is definitely helping the client with their hiring process.

A recent case we encountered illustrates this perfectly. A consultant, who had built a strong relationship with a hiring manager, introduced a candidate directly. The hiring manager was impressed, but the procurement department reacted by canceling the existing contract because the introduction didn’t follow their process. Despite this, the manager pushed to hire the candidate, resulting in a new contract needing to be put in place.?

The cycle later repeated when another candidate was introduced - again, the contract was canceled, and a new one needed to be drawn up to eventually hire this next candidate. This led to inefficiencies and a lot of wasted time.

SUGGESTION: Do you really want to miss out on great candidates and let your competitors snap them up? By all means, follow procedure, but build flexibility into your processes and focus on how to deliver the most favorable business outcomes.?

Finding the Right Balance

Procurement departments play a crucial role in managing costs and ensuring compliance, but when it comes to recruitment, a more balanced approach is needed. Recruiting top talent requires flexibility, relationship-building, and an understanding that the right candidate is worth more than just a discounted commission rate.

In the end, the cost of missing out on top-tier talent - or worse, making a bad hire - far outweighs the savings that come from squeezing every last penny out of a recruitment contract. At FocusCore, we’ve seen time and again that when we can work in partnership with our clients, the results are far better for everyone involved.?

Are you facing challenges in your executive search process? I’m here to help. Feel free to reach out at [email protected] or connect with me here on LinkedIn. Let’s ensure your recruitment strategy aligns with your company’s long-term goals.