Who Needs Recruiters in a Digital / AI World?

10 Ways Executive Recruiters Can Enhance Hiring ROI During 2024

By: Chuck Klein, Amcon Recruitment

How has Executive Recruitment Changed?

Like all areas of business, Executive Recruitment has progressed in the last 25 years and yet – incredibly - many things have stayed the same.? ?Years ago, recruiters used to run advertisements in print publications; resumes were sent by snail mail or faxed. Finding passive candidates required the skills of a private investigator.? We are now in a new world.

So it begs the question: Do executive recruiters really provide value to hiring managers in today’s digital / AI business environment??

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Here comes a "Monster"

Just to gain some perspective:? In 1999, the recruitment site "Monster" was launched as the first online job site and was supposed to revolutionize the recruitment industry. Who needs recruiters – just run an ad or search for resumes (CV’s) on Monster and find the perfect candidate.?

Other job boards soon followed and many recruiters were worried that technology would replace them. ??Nonetheless, the expected crash of the recruitment industry never happened and in fact the field grew.?

It seems that recruiters were bringing value that online job boards could not, especially for mid-senior-level roles. That value, as we outline below, continues today.

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A 25 Year Perspective

Looking at executive recruitment from a 25-30 year perspective is quite interesting.? Despite major changes in processes and technology, the basic needs of hiring managers remains surprisingly similar.

Understandably, there is a lot of talk about the use of AI in recruitment and some recruiters and hiring managers are benefitting.? But we are not seeing any indication that AI will replace the need for strong, value-added recruiters.

Candidates - especially at the mid-senior level - want to be treated with dignity and respect.? The idea of getting them to agree to interface with a computer which will evaluate them seems highly unlikely; the candidates we work with would quickly run in the other direction.

We need to stress that candidates are currently very cautious and hesitant to make a move -? getting them to say “yes” is the end result of a very “human process” by a skilled recruiter and/or hiring manager.

Despite major changes in processes and technology, the basic needs of hiring managers remains surprisingly similar

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10 Indispensable High-Value Functions Executive Recruiters Bring to the Table

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So let’s take a look at what strong executive recruiters are actually providing their hiring managers. While every search has its unique characteristics, listed below are 10 key benefits that seasoned recruiters often bring to the hiring mangers they support, based on our many years of US recruitment experience. ?

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#1? Defining the Position

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Many companies struggle to define what they are really seeking and start to search for candidates before they have a defined profile. A good recruiter will insist on working with all key stakeholders to carefully define the role and the types of candidates who will meet their needs, using the recruiter’s experience with other companies as a guide.?

Defining a role incorrectly will only become obvious later in the process, resulting in a major waste of time and resources.

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?A good recruiter will insist on working with all key stakeholders to carefully define the role and the types of candidates who will meet their needs

#2? Providing a Reality Check

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Some hiring managers unintentionally seek a “superhero” - someone who can do everything in a new function which often proves to be unrealistic. A good recruiter will help hiring managers prioritize what they really need.? They can also provide valuable feedback on compensation ranges for the candidates, understanding that many hiring managers set compensation levels based on “wishful thinking”.??

While there may be candidates in the range they want, the best candidates – the “A” players – are often pricier than anticipated.

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#3 Uncovering Passive Candidates

Every recruiter knows that finding great passive candidates is often the key to success. A great recruiter will use multiple resources to uncover these candidates – which involves high-energy, proactive networking with industry insiders. ?

Real World Example: On a recent search, we were fortunate to speak to a former employee of key competitor who told us about a relevant executive who was unhappy in his role and was discretely putting out feelers.

We easily connected with him, saying his colleague referred us and he engaged with me on the search. ?Information on such candidates – and getting referred to them by a trusted associate - can only be uncovered by speaking to a large number of people in the relevant industry.

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#4 Engaging with Passive Candidates – Planting the Seeds

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Finding passive candidates is one thing; getting them interested to even have an initial call is a true art form which great executive recruiters have perfected.?

Real World Example: We once reached out to a highly relevant passive candidate for a VP Sales and Marketing role who said he wasn’t interested.? While we could have dropped it, I followed up a number of times, with additional information about the company’s new products, new markets and investment in their people.

Finally, he agreed to speak to me, followed by a short, no-obligation call with the CEO.? They spoke briefly; he thought about it and then asked for a second call, then a meeting.

He was eventually hired and grew sales dramatically, staying with the company for 10 years.? We could have easily walked away. However, carefully planting a few seeds one at a time helped spark his curiosity and we secured agreement for that initial discussion.? Several years later he sent me a gift for bringing him this opportunity.

Finding passive candidates is one thing; getting them interested to even have an initial call is a true art form which great executive recruiters have perfected.?

#5 Identifying “Fresh” Job Seekers

As opposed to passive candidates, “active” candidates are actually seeking a new role.? Obviously, a “fresh job seeker” - someone who just started looking - may be the most interesting.?

Real World Example: Recently, we received a message from a sales manager candidate we had interviewed in the past whose company had just merged with a competitor and his position was being eliminated. He literally contacted me the day he got the news and we were able to introduce him to a great opportunity.

Real World Example: On another search several years ago, we contacted more than 100 people for an Operations Manager role in Florida. One of the people we contacted had just been laid off the previous week and was certain he would need to relocate.? He told us our timing was “miraculous”, we made the introduction and he was eventually hired.?

“Fresh” candidates like these are far more attractive to hiring managers than someone who has been unemployed for the last 9-12 months.

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#6 Overcoming Skepticism and Caution in “A” Players

Strong candidates are always cautious, even skeptical when they hear about a new position.? Weak recruiters will get scared off.? Strong recruiters understand their position, listen intently to what they say and always ask “What kind of position or opportunity would cause you to consider making a move”??

Understanding what’s important will help you use the right ammunition. Are they seeking more responsibility? Less travel?? A company with advanced technology? More incentive compensation?? Stock options? A flexible schedule? ?Hybrid or 100% remote?

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#7 Overcoming Incorrect Assumptions by the Hiring Manager

Hiring managers are also cautious and even skeptical and can sometimes reach the wrong conclusion based on material supplied by a candidate. ?A good recruiter won’t just email material to the decision maker.

The recruiter will present the candidate, explain their background and listen for objections from the hiring manager to determine if they are justified.?

We often hear decision make incorrect assumptions on details related to a candidate or the company where they currently work.

Real World Example: Recently a CEO told me that a candidate’s current company is very small and only sells X$ per year, as that’s what was listed on a business information web site.? Sales at that company are actually much higher but as a privately held company, the published information was far off the mark and the CEO had concluded the candidate wasn’t a good fit.?

Once we shared the correct information from a credible source, the CEO agreed to see the candidate.

We often hear decision make incorrect assumptions on details related to a candidate or the company where they currently work.

#8 Moderating the Initial Interview

While not always needed, a strong recruiter can assist hiring managers by moderating the initial video call or meeting with a candidate. Some decision makers prefer to have the recruiter ask the questions so they can simply listen and interject comments when warranted.?

The executive recruiter can also prepare a list of relevant questions for the discussion. When the candidate is American and the hiring manager is based overseas, moderating assistance like this is very valuable in bridging cultural or language gaps.

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#9 Candidate Evaluation Techniques

Even after a few good discussions, hiring managers seek additional ways to evaluate candidates.? Various methods exist including requesting a presentation to management, formal testing, role playing, bringing a candidate to a customer meeting or introducing the candidate to co-workers or potential subordinates.? Each case is different and a good recruiter can help manage this process.

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#10 Help with the Offer and Negotiations

Strong recruiters will obtain information from candidates regarding their desired package, when requested by the hiring manager. Sharing this with company management can help them craft an offer that will be accepted or at least will be in the right ballpark.

We have seen situations where the offer extended was so far off from the candidate’s expectations that the candidate simply walked away from the process.?

Some recruiters work with the candidate and hiring manager as a kind of middleman after an offer has been extended, highlighting areas that need to be addressed.

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We are in a digital / AI World – Is all this really necessary?

In a word – yes!? If you have reviewed the list above, I would simply ask:? Can the above functions be provided without the involvement of a recruitment professional??

AI can evaluate a resume (often not terribly accurately) but it certainly can’t read between the lines to understand a candidate’s “hot buttons”. ?It can’t uncover inside information about an executive who just decided to put out feelers nor identify the motivations that would cause someone to pursue an opportunity.

Senior level candidates seek – and in fact demand - a highly professional and personalized recruitment process or they quickly lose interest.? ?

Bottom Line

I would therefore conclude that hiring managers will continue to need and benefit greatly from seasoned recruiters in many of the areas we listed above, working side-by-side with advances in technology. There is simply no replacement for human involvement in a successful recruitment process.?

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The Future of Executive Recruitment

I can’t predict the future but it’s clear that executive recruitment will continue to evolve as new technologies become mainstream. AI and other automation tools will certainly play a role but the human connection recruiters provide in working with candidates will remain a critical element in hiring top talent for their client’s organizations.

?I would welcome comments on the ideas presented above. ?Happy hunting!

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Chuck Klein is President of Amcon Recruitment Ltd., a boutique executive recruitment firm assisting non-US and US companies find exceptional employees in America. He can also be contacted for online workshops and in-house training.

Chuck has 20+ years’ experience in US Recruitment and is the author a large number of articles and posts on US market entry topics. He is the author of the book Marketing to America: How non-US companies can profit by selling in the USA (Prentice Hall / Financial Times) https://www.dhirubhai.net/in/amcon/