The Benefits of Partnering With an External Recruitment Agency

I had the opportunity to attend the Human Capital Institute – Talent Acquisition Strategist program last week in San Francisco.  It was extremely insightful on many fronts and the interaction between the participants was exceptional.  We discussed the Talent Life Cycle model in great detail and I found the most interesting facets in this model were:

• The typical corporate model of recruiting and screening out versus the proactive model of recruiting to attract talent and screen in.
• Sourcing strategies.

The dialog between the participants led me to believe that the administrative burden on internal recruiters is over-whelming.  This is largely due to organizational make-up and lack of resources to support a proactive talent acquisition model.  This is a key reason why companies should work with external recruiting/talent acquisition agencies.  External search agencies with talent acquisition advisors will remain a key pillar for your success for the following reasons:

• Your need to find specialized expertise that is critical to the success of your business
• There are a ton of statistics suggesting that companies benefit from outsourcing strategic services.  These benefits include:
  • 70% of comanies have a weak talent pipeline, which can cost $7,000 per day when operating without a key player. If an external recruitment agency can accelerate your “Time to Hire”  this is a cost savings
  • Many passive candidates are already on the radar of external recruitment firms for their industry sector.  These in many cases are top talent.  HCI shared statistics that the value of top talent is 2 – 3 times the performance of average employees
  • The cost of a poor hire can range from $300 – $500K (HCI – TAS program)

A lot of this information isn’t NEWS but is good to reinforce as companies build out more mature models.