Why External Recruiters Have a Reputation Problem....

This kid wants to intern for Seth Godin.  To heck with that, I want to intern for Harry Joiner...

The Marketing Headhunter speaks the truth:

"Do recruiters have a bad reputation?  In my experience, "YES" -- and one of the main  reasons is that the contingency recruiting business pays recruiters $1,000-2,000/month draw versus straight commission.  That's a run rate of $12-24K per year with NO benefits -- even though a new recruiter who does not close a deal in his first three months on the job at a well-run agency is fired.

The result is that most contingency recruiters are incredibly transactional in their approach to developing candidate relationships: They are "incentivized" to pick the lowest hanging fruit they can find, taking any search assignment a client will give them regardless of how it aligns with their own expertise.  Candidates suffer the consequences on the front end of this process, while the tail end of the recruiting process is fraught with serious conflicts of interest.  For example, asking your recruiter if you should accept his client's job offer is like asking a barber if you need a haircut."

First up, let me offer up this.  I'm a HR pro at this juncture in my career, but maybe a recruiter later on - who knows?  I know a lot of recruiters who are very good, are relationship-based and have my best interests at heart.  Additionally, I'm going to go out on a limb and say that if you have a blog, are actively blogging at a contributor site, your willingness to be part of the conversation suggests to me that you are part of the solution, not part of a reputation problem.  Even if you cold call and try to fill the funnel the traditional way. 

Harry's key word is "transactional".  If you have to cram numbers to survive, the entry level recruiter with limited experience likely has to spend 3-4 years in the cycle Harry describes before they're established enough to do it the right way.

The result is a lot of cold calling and entry-level recruiters recycling resumes they found off of Monster.  Which hurts the field in the reputation game.  Wouldn't it be great if entry-level recruiters could have a blended role doing several things for a company, and the fact that their role was blended allowed them to grow their networks and do it the right way?

I'm thinking if I ever go into third-party recruiting, it would have to be part of a career portfolio, with me doing several other things to pay the bills.  That way I could walk away from bad situations without wondering how I was going to pay the rent.

I wish some of the recruiters who call me randomly had the same luxury... 

Comments

[Jessica Lee]

i'll give it to you, KD. hear it here first! not all 3P recruiters are bad. you're right. there are great ones who focus on relationship building and for whom business is not transactional. i know a few of those and appreciate them tremendously. the industry itself has some issues and that's probably the root of the problem - the high turnover seems to be acceptable. the comp structure makes picking low-hanging fruit too easy to pass up if not a necessity... sounds like another industry in need of a makeover.

just wondering... are there any national or big-time contingency firms who you think are getting it right and could be models for the others? i can individual recruiters i've worked with... but if the problem is systemic, i wonder if there's an entity that can be looked to as a starting point?

[Jennifer McClure]

I agree with you/Harry that many contingency recruiters are transactional, and are incentivized in a number of ways to pick low hanging fruit. Some of that may be related to how they're compensated, but actually companies/HR tend to "feed that beast". A relationship is a two way street, and if HR does not take the time to develop a relationship with the recruiter/firm, and is using multiple contingency recruiting firms (no loyalty), then the recruiters at those firms are being incentivized by the client to be the first one to get a candidate on the desk that remotely meets the competencies outlined for the job. They don't have time to focus on things like culture fit, and often don't spend much time at all with the candidates. If they are not quick to respond, it's likely that another recruiter will get a candidate in/make the placement and get the fee.

Many recruiters out there certainly contribute to our industry's negative reputation, but a client who is looking for a true partner will often get one. Components of that partnership can include retaining a firm to engage in a search, or if a company feels it can't tolerate that model, at least work exclusively with one contingency firm. Recruiting excellent candidates who fit the culture of an organization takes time, and if you take away the need to ring the bell first/quickly, then you are likely to get a higher quality candidate in the end. Also, if a relationship has been established, and it includes mutual trust, a good contingency recruiter will not want to place a candidate at their client company who is not a good fit. They won't want to get a placement today, but possibly lose the client long term.

It's easy for HR to hate on recruiters and vice versa, but if the relationship/performance is bad, it's often because both sides are lacking in extending trust and true partnership.

[KD]

Jessica -

Good question. I invited Tim Tolan to contribute to the site because he provided one of the best experiences I have ever had from a recruiter. The differnce between what I got from him and how lots of others have approached it is pretty extreme.

Now for the others I look up to, but have never used. I love reading Harry Joiner's stuff, so if you haven't subscribed to the Marketing Headhunter, do it now. I like the concept of finding a specific niche, then working to own that niche.

And of course, I never worked with them, but I gotta feel like McClure and Hogan could rock it the right way.

Jennifer - agree with your thoughts. HR's the same way. Some good, some bad... a few great. I'm a big fan at this point of the exclusive contingency - giving a trusted source in the right niche 30 days to get a the right candidate.

But the folks pushing recycled monster candidates without me asking for the resumes? C'mon....

K

[Gene]

"that the contingency recruiting business pays recruiters $1,000-2,000/month draw versus straight commission. That's a run rate of $12-24K per year with NO benefits"

In Boston, a firm that paid like this would not survive. The entry level salary for recruiters is $30-40k (with full benefits) with a commission run rate that takes them into the $60 - 80k in the first year.

If you are unlucky, you might land in a scummy firm that doesn't pay well, but the quality of recruiters there will be as you described. And the good recruiters will leave at the first opportunity. I happened on a firm like that as my first job; they lost 2 key recruiters from a staff of 3 in a 2 week period.

I will never force an offer on a candidate. If they don't want it, fine. But it should not get to that point if you properly qualify the candidate in the first place.

Sometimes it seems that HR is on a power trip in attempting to control third party recruiters to the detriment of the client company.

[Michael Katz]

Great article. As a 3P recruiter, I am constantly fighting the awful reputation unscrupulous agencies have given the industry. My firm only sources passive candidates (read: qualified candidates without a resume on a major job board!) and we have a very tight screening process BUT I have a mountain to climb when it comes to persuading HR of all of this.

Does anyone have any suggestions as to how a thorough and legitimate 3P can persuade you guys to show you what we can do? If I show you a resume of someone who I think would be a good fit, it's 'unsolicited'. If I ask to be added to the vendor list, 'we are not currently adding vendors'. If I go to the hiring manager, I have not followed procedure and get dinged.

[KD]

Michael -

For my money, the best way to get to me is probably to call me before I have an opening, tell me how you source (without job boards), and also focus on a very, very specific niche. That's what I like about Tim Tolan (who contributes here), he's very/very deep in his niche. When I have an opening and need help in that area, I ID him as the single source. I think that has to be the goal for any recruiter....

Thanks - KD