RaaS: Is It Right For You?
Nearly every company I know, when asked, will answer that people are their most important asset. Their behavior, however, seldom supports that assertion and the way their approach building human capital is no exception. Traditionally, as companies grow and need additional talent, they would either utilize a professional recruiter, experienced in identifying and vetting talent, or they would rely on their existing HR team to fill openings as they would arise. Today, there’s another option: RaaS, or Recruiting as a Service, a hybrid approach to sourcing and developing human capital that works well for many smaller firms, or even larger firms that want to flex their capacity to align with business cycles.
Hiring an agency typically has the advantages of providing intense focus on an as-needed basis by professionals experienced in recruiting, leaving your team to focus on your business. It is transactional, however, and, if engaged on a contingency basis, the recruiter may not take the time to understand fully your organization’s culture. Moreover, because the recruiter’s only compensation comes from filling openings, there’s little motivation to be patient enough to find the optimal candidate or add value in other ways. Tackling it in-house, however, may mean asking an already busy HR team – you are growing, after all; that’s why you’re hiring – to take on a task that may not play to its strength, potentially resulting in lost productivity and inefficiencies in finding the best candidates.
Recruiting as a Service develops a different relationship between a professional recruiter and her client that may entail a contractual retainer, eliminating the transactional, commission-based compensation entirely or a hybrid of the two – a lower ongoing retainer coupled with a smaller commission paid for successful transactions. One of the most obvious benefits is that it aligns the recruiter’s goals with yours – the long-term success of candidates they introduce to you, making the partnership more of a strategic one. It allows your recruiting partner to understand fully your culture and gain visibility into your hiring forecast, anticipating your needs on a timely basis.
A guaranteed recurring revenue contract vs. a less predictable transaction driven commission may be attractive to a recruiter that has a long-term view and strives to build strategic partnerships. If your recruiting service provider has a demonstrated track record in the functional areas within which they are recruiting, they can — and will — easily provide valuable perspective and advice if you take the time to develop an ongoing relationship.
Nearly every company I know, when asked, will answer that people are their most important asset. Their behavior, however, seldom supports that assertion and the way their approach building human capital is no exception. Traditionally, as companies grow and need additional talent, they would either utilize a professional recruiter, experienced in identifying and vetting talent, or they would rely on their existing HR team to fill openings as they would arise. Today, there’s another option: RaaS, or Recruiting as a Service, a hybrid approach to sourcing and developing human capital that works well for many smaller firms, or even larger firms that want to flex their capacity to align with business cycles.
Hiring an agency typically has the advantages of providing intense focus on an as-needed basis by professionals experienced in recruiting, leaving your team to focus on your business. It is transactional, however, and, if engaged on a contingency basis, the recruiter may not take the time to understand fully your organization’s culture. Moreover, because the recruiter’s only compensation comes from filling openings, there’s little motivation to be patient enough to find the optimal candidate or add value in other ways. Tackling it in-house, however, may mean asking an already busy HR team – you are growing, after all; that’s why you’re hiring – to take on a task that may not play to its strength, potentially resulting in lost productivity and inefficiencies in finding the best candidates.
Recruiting as a Service develops a different relationship between a professional recruiter and her client that may entail a contractual retainer, eliminating the transactional, commission-based compensation entirely or a hybrid of the two – a lower ongoing retainer coupled with a smaller commission paid for successful transactions. One of the most obvious benefits is that it aligns the recruiter’s goals with yours – the long-term success of candidates they introduce to you, making the partnership more of a strategic one. It allows your recruiting partner to understand fully your culture and gain visibility into your hiring forecast, anticipating your needs on a timely basis.
A guaranteed recurring revenue contract vs. a less predictable transaction driven commission may be attractive to a recruiter that has a long-term view and strives to build strategic partnerships. If your recruiting service provider has a demonstrated track record in the functional areas within which they are recruiting, they can — and will — easily provide valuable perspective and advice if you take the time to develop an ongoing relationship.