Why Using Multiple Recruiters Can Be Costly To Companies

Some companies believe more is better. When a company has an opening in need of top talent, some believe that contacting several recruiting firms to help source and recruit for a position is the best way to go. “Casting a wider net will find us more candidates”. This practice may be true when gathering resumes through job boards and searching the unemployment pools, but is detrimental when “hunting” for a specific person with specific skills sets and experience.

1. Multi-listing devalues the job in the market and devalues the employer brand. The law of scarcity is a powerful law.

a. If 4 recruiters call up a prospect within 48 hours, all mentioning the same job, the perception is that the job has less value. The candidate wonders why the job has to be given out to 4 different recruiters.

b. Good jobs don’t need a multitude of recruiters to fill them.

2. Quantity becomes more important than finding the BEST Candidate

a. Recruiters working multi-listing are more inclined to throw resumes at you to see what sticks. Realizing their candidate may be in the competitors database as well. As a result, they send anyone who remotely fits the job spec.

b. The result: 4 recruiters send 20+ resumes, and the client is lucky to find 1 candidate worth interviewing.

3. The company does more work and still pays the same fee

a. Take the 20+ example; you now have to take valuable time reviewing all 20+ resumes, make a multitude of calls to the recruiters to provide feedback, arrange interviews, etc. not to mention 4 separate calls to brief recruiters on the job specs. If you add this all up, compared to working with one recruiter, you probably spends 10-20 hours in duplicated communication.

4. You do more work, resents it, and start to cut corners

A. because of the above, you begin to resent the duplicated communication. Most Hiring Managers lessen communication channels – face to face and phone conversations decrease ,while - the least effective method of communication – email, increases.

b. This hurts the recruiter who needs real time, client feedback to deliver the best possible candidate as quickly as possible.

5. Exclusivity gives the recruiter time to do a thorough job to find the best candidate

a. Best candidates require drilling deep into the market to find them.

b. You don’t receive a body shop approach sacrificing quality for time

6. The reality is that all recruiters give priory to exclusive jobs

a. Because an exclusive client is relying on that recruiter

b. Probability of receiving a fee for work done is 4 times greater, thus the recruiter gives priority to you.

7. The best candidates are put forward to exclusive jobs

a. Studies show that Companies who multi-list are slower at responding to quality candidates.

b. Recruiters don’t want their reputation w/candidates damaged by slow response from clients.

c. Thus, recruits send in 2nd -3rd tier candidates who are still likely to be on the market when the slow responding client finally gets around to responding to resumes.

8. Other professions don’t do it.

a. What CPA would take on a clients tax work if 3 other CPA’s had the job and the first one finished would get the fee? What attorney would represent a client who had three or four other firms working on the same case?

If you are looking to fill a position within your company, quickly and efficiently; avoid multi-listings. Contact a recruiter that partners with you by surfacing quality talent that will fit your team.

2008 Workplace Trends

1. Recruitment in a Tightening Labor Market Even the coming economic slowdown will not completely stop the creation of jobs. Moreover, stimulated by job creation and the fact that skilled workers in many occupations are in short supply, time-to-fill openings will also continue to increase as will the costs.

2. More Employers Turning to Recruitment Process Outsourcing (RPO) In an effort to reduce costs, more large employers will turn to companies that provide a wide variety of recruitment services on an outsourced or insourced basis, including providing customized services for clients, based on specific needs.

3. Retention in the Face of Increasing Choices for Employees. Recent studies reflect that employee turnover is accelerating. With increasing choices we will see more attrition, especially from the ranks of long-term employees. Wise employers will conduct "stay interviews" and provide re-orientation to their seasoned employees. More employers will begin to be aware of the value of contingent employees and address the issues of retaining them.

4. More Employers will focus on Metrics Following the lead of large employers, more medium-size employers will embrace technology to manage the employee life-cycle and operate more efficiently. This increased efficiency will drive more profit to the bottom line.

5. Leadership Deficit Becomes More Apparent As companies experience the re-careering of Baby Boomer executives, they will become more aware of the lack of qualified supervisors and managers to move up into higher positions. The organizations' previous lack of training for would-be leaders is to blame.

6. Lack of Succession Preparation
Organizations will become more acutely aware of their lack of succession preparation. They have simply not invested in leadership training so that their supervisors, managers, and executives are not ready to move into the positions.

7. More Employers Accommodate Older Workers to Maintain Intellectual Capital The drive to retain older workers will cause companies to work harder to accommodate the wants and needs of older workers. AARP will support employers' drives to hold onto these valuable employees. More employers will embrace flexibility in all aspects of work to adapt to the wants and needs of their retirement-age associates.

8. More Awareness of the Link between Economic- and Workforce Development Workforce development issues move to top-of-mind for communities, as they become more aware of the workforce imperative---that business and industry will only locate where there are the skilled workers to fill their open positions. This awareness will lead organizations to focus more on middle- and high-school students to begin to expose them early to the careers available in their communities.


Alternative Energy, Web Developing are Hot in '08 Job Market

If you're wondering what jobs will be hot in 2008, take a second look at the past year's news. Major events and trends often set the stage for dramatic changes in recruiting, and this year is no exception.

Headlines about soaring oil prices and the iPhone's introduction signal that more jobs will be created in such areas as alternative energy, online networking and mobile technology, say recruiters. Not surprisingly, though, some big stories are likely to be followed by substantial job cuts. Case in point: The lingering mortgage crisis has already resulted in mass layoffs for workers at many lending institutions, banks and real-estate companies. The jobs outlook for these concerns is expected to be even gloomier in 2008, say recruiters.

Away from the headlines, recruiters say demand should continue strong in health care and retirement planning as the baby-boomer population continues to age. And the Sarbanes-Oxley Act of 2002 will continue to drive hiring at accounting firms.

Here's a look at some of the biggest news stories of 2007 and their expected jobs-related impact in 2008:

Escalating Gasoline Prices

The news: The price of oil neared records in 2007, and energy analysts see no relief in the near future as output remains steady, demand continues to increase, and the U.S. dollar continues to weaken.

What's hot: In response to rising gasoline prices, companies offering alternative-energy solutions are sprouting up, creating a need for workers with backgrounds in fields ranging from marketing to computer science. Expects that figure to climb to 25% in 2008.

life-science, technology and energy companies are mainly seeking management, operations, technology, and research and development professionals from parallel industries because alternative energy is so new that few candidates are expected to have direct experience. Executive-level operations positions can pay $175,000 in annual base salary, he adds.

Alternative-energy companies also need workers for positions in human resources, sales, accounting and other critical business functions, Mr. Polachi says. However, there are signs that one segment of the industry -- ethanol -- is consolidating, which could limit job opportunities in this niche. VeraSun Energy Corp. recently disclosed plans to acquire rival US BioEnergy Corp., creating what could become the largest U.S. producer.

What's not: Businesses that rely heavily on oil, such as chemical producers and airlines, are showing signs of a hiring slowdown. For example, Dow Chemical Co. recently announced plans to cut 1,000 jobs and shuttered a number of underperforming plants. Gas and oil are the main feedstock for chemical companies like Dow.

Mobile Technology And Online Networking

The news: Early this year, Apple Inc. introduced the iPhone, a device that combines Web, video and mobile technology, and competitors followed suit by putting out similar products. In October, Microsoft Corp. announced plans to buy a 1.6% stake in Facebook Inc., solidifying online social networking as more than a passing trend.

What's hot: Web developers skilled at creating applications for mobile advertising, social-networking and other user-generated content . there is a dearth of Web developers of this kind because the genre is so new. "Demand is at every level," salaries range from $45,000 for recent college graduates to about $110,000 for senior developers.

Another hot area: online ad sales professionals, particularly at firms that broker deals for small Web companies that lack internal sales teams. Similarly, mobile ad sales pros are in demand now that more carriers are integrating Web technology into cellphone services.

What's not: Professionals skilled in search-engine optimization -- or the art of making Web sites search-engine friendly, says Mr. Goldsmith. They may have been hot commodities last year when such workers were hard to find; now there are more than enough to fill the demand. Also, experts in selling and developing tools for doing business online are less in demand. It's a natural progression, Mr. Goldsmith explains. Demand has quieted as search engines and e-commerce have matured.

The Mortgage Crisis

The news: A growing number of homeowners are finding it difficult to pay their mortgages after loose lending standards led to a high rate of subprime adjustable-rate mortgages. As these loans adjust upward, homeowners find themselves stuck with payments that are hundreds or thousands of dollars higher each month. The result: A significant increase in foreclosures and massive loan write-downs on the part of banks.

What's hot: To avoid repeating history, lending institutions, hedge funds and investment banks are likely to invest more in departments aimed at offsetting such problems, says Michael Woodrow, president and founder of Risk Talent Associates LLC, a New York-based recruiter that places senior professionals in credit, market and operational risk-related positions as well as quantitative and compliance finance jobs. Annual compensation packages range from $75,000 for junior risk analysts to more than $1 million for chief risk officers, he says.

Mr. Woodrow notes that a global commercial bank hired the search firm last month to find a director of risk management for its commodities division. Normally, finance companies hold off trying to fill senior positions until after the New Year because many professionals want to secure their year-end bonuses, he says. But this firm offered to include a bonus equal to what the winning candidate would lose, as well as compensation that is 40% higher than the job's average pay package of $450,000. "The skill set is in high demand, and it's a value proposition," he explains. "If you're taking millions of dollars worth of risk, you need the right person in there helping you understand that."

What's not: Jobs that are directly related to the home-loan industry are becoming increasingly scarce, say recruiters. Positions throughout the corporate ladder at mortgage, real-estate and home-construction companies are being eliminated. The panic is also showing signs of spreading to industries that service these areas, including law firms and financial-services companies with practices in real estate and mortgage securities. Interior-design firms and home-furnishings companies are also being hit hard. Cases in point: Retailers Bombay Co. and Levitz Furniture Inc. both recently filed for Chapter 11 bankruptcy-law protection.

By SARAH E. NEEDLEMAN December 11, 2007; Page B12 WSJ

Write to Sarah E. Needleman at

Career Changer - Resume Tips

The Reengineered Résumé

As the saying goes, you get only one chance to make a first impression. For the career changer, if the first impression comes via a résumé, it must emphasize how accomplishments in unrelated realms can make a difference in a new field. Here are some tips for constructing an effective career changer's résumé:

-- Share successes, not daily tasks. No one cares what you did every day at 9 a.m. and 3p.m. on your old job.

-- Emphasize transferable skills, such as managing people and translating highly technical information for nontechnical audiences.

-- Include an objectives statement that explains your goals in switching disciplines.

-- Avoid jargon from your old career, and don't play up affiliations associated with it.

If you're over 50, also consider these pointers:

-- Delete the earliest years of your job history. Recruiters recommend detailing only the past 10 to 20 years. This shortens your résumé and dampens the "vintage effect." But do mention any early jobs that tie to your career-change aspirations.

-- To allay health concerns about older employees, include a leisure activities category that shows your physical prowess. If you run marathons, say so.

By Liz Ryan



Is your talent pipeline overstocked? Do you go to sleep at night without worrying about key people leaving — or where you will find them in the future?

Chances are the answer to those questions is no. Talent is becoming scarcer, at a time when companies need more of it if they are to compete effectively on a global stage. And companies in the developed world can no longer automatically attract the best people from the rest of the world.

In previous years, top multinational companies could pick the cream of the crop, says Peter Cheese, global managing director for the human performance practice at Accenture, the global management consulting, technology services and outsourcing company. Mr. Cheese is co-author with Robert J. Thomas and Elizabeth Craig of Accenture of “The Talent Powered Organization,” published this month by Kogan Page. Now, new companies, new industries and new national markets vie for top talent, at a time when that pool is aging, shrinking and globalizing.

High-performance businesses — those that consistently lead their industries — are increasingly seeing the competitive potential of better talent management, says Ms. Craig, research fellow at the Accenture Institute for High Performance Business in Boston. “Companies have traditionally focused on financial capital over human capital. Now talent is one of the biggest sources of strategic value to companies.”

How are companies capturing that value? Accenture’s High Performance Business research reveals talent-powered organizations share a distinctive capability that Accenture calls “talent multiplication.” They are able to combine and recombine knowledge and skills throughout the organization to generate superior levels of creativity, adaptability and performance. It requires a consistent and holistic approach across all the dimensions of defining, discovering, developing and deploying talent. Truly talent-powered organizations that achieve talent multiplication can generate extraordinary results in the process.

Defining Talent Needs

Organizations must define talent needs in terms of business strategy, identifying “mission-critical” jobs and key work-force skills. “It goes way beyond taking today’s job descriptions and projecting future head counts against them,” says John Boudreau, professor at the Marshall School of Business at the University of Southern California in Los Angeles and co-author of “Beyond HR: The New Science of Human Capital.” Companies, he says, need to ask where improving talent would make a difference in achieving their most pivotal strategic goals. Sometimes the answer can be found in surprising places.

Walt Disney Co.’s strategy for its theme parks depends on delighting customers to such an extent that the brand’s magical reputation with families is maintained. “Everyone expects the [Disney] characters to be charming and helpful,” Prof. Boudreau says. But when even a Disneyland street sweeper helps people find what they’re looking for, the alignment of work forces and strategy becomes evident. Disney needs sweepers and housekeepers who understand how important they are to the entire customer experience.

Discovering Talent

Once a company knows what it needs, it will need to go significantly beyond the traditional ways of finding people, such as placing booths at job fairs or turning to headhunters.

Organizations must discover new sources of talent by considering novel options for accessing the talent they need, says Accenture’s Ms. Craig.

Today, skilled resources may be found in new places and in new ways, sometimes not even needing to be formally employed to be able to contribute. One unusual new option is “crowdsourcing.” Goldcorp Inc., a Vancouver gold-mining company, used it to help increase production at its Red Lake Mine in Canada. In March 2000, Goldcorp posted all available geological data for the mine on its corporate Web site. Competing for prize money, more than 1,400 online “prospectors” identified potential targets for the next six million ounces of gold at Red Lake.

Some companies use new technologies to find and get to know potential employees before they are needed. Electronic Arts Inc. of Redwood City, Calif., an electronic-game developer, establishes online relationships with potential candidates years before actually having jobs for them, says Prof. Boudreau. As a result, when an actual job opens up, they can fill it quickly.

The places to look for talent have also changed. As countries in the developing world improve their educational systems, the pools of talent there are becoming very attractive sources of key skills in areas such as engineering, science and technology. Outsourcing began as the practice of sending low-skilled work to low-cost workers. Now, it can be a way of accessing talent pools in new locations or geographies for critical positions, says Accenture’s Mr. Cheese. “It’s more about value than just cost savings.”

Developing Talent

The key to effectively developing talent, Mr. Cheese says, is to expand the organization’s collective capabilities by building individual skills — all in the service of strategic goals.

Too often, training efforts are fragmented, lack critical focus and aren’t sufficiently innovative, and there is too little understanding of value or return on investment. One very important area, and so often cited as one of the most critical skills that organizations are concerned about, is leadership. Most companies’ efforts to develop leadership capabilities have “been focused on the top 5% of the leadership cadre. It ignores the other 95%, particularly at the line or supervisory management levels,” Mr. Cheese says. “A significant challenge is to train line managers to develop and mine talent. It’s now even more of a challenge as workers are no longer physically outside their managers’ doors. They are likely to be increasingly diverse in background, and may well be in other countries, and from other cultures.”

Few companies pay enough attention to the development of middle managers. “It’s the least accounted-for part of most companies’ spending,” says Mark Huselid, professor of human resource strategy at Rutgers University in Piscataway, N.J. At a hospital, he found administrators could easily pinpoint problems with defective bandages, which accounted for 2% of spending. Identifying underperforming managers was another story, although the hospital spent 60% of its budget on people. “Not only did they not know who their defective managers were, they didn’t know their best managers either,” says Prof. Huselid.

Deploying Talent

Having the “right” talent is only half the game. Companies must also deploy it in the right place at the right time.

One critical element of strategic deployment is breaking the “job-centric” view of the company. “There’s a deep-seated mindset that you put people into jobs and that’s how you get work done,” says Accenture’s Ms. Craig. “But the tasks that need to be done don’t necessarily have to be organized around a particular job. You can break tasks down in ways that allow you to deploy people differently.”

Consider how electronics retailer Best Buy Co. redefined “right time, right place” for 2,900 of its 4,000 employees at its Richfield, Minn., headquarters. Participants in the Results Only Work Environments, or ROWE, can set their own hours and work where they are most comfortable — the only thing that matters is results.

Productivity has improved more than 40%, while the voluntary turnover rate has dropped significantly among participants over the past four years, according to CultureRx, a Minneapolis consulting company started by Cali Ressler and Jody Thompson, two former Best Buy employees, who created ROWE. According to Ms. Thompson, “Individuals that have adopted the ROWE lifestyle have organized their own work in a way that is most efficient and effective.”

While some organizations succeed at one or another of the four pillars of talent multiplication, only talent-powered organizations manage to build and sustain them in an integrated system that is aligned with business strategy, Ms. Craig says.

United Parcel Service Inc. manages this feat. The Atlanta-based package-delivery company has defined talent by identifying its truck drivers as a mission-critical work force. “When people think of UPS they think of our drivers,” says Elizabeth Rasberry, a UPS spokeswoman. “Many of our drivers have been on their routes for many years and know their customers and their businesses.”

UPS discovers talent for its full-time roles by sifting through its huge pool of part-timers — almost half of the work force in 2006, with 55% of them college students. Many of the students, in particular, take full-time jobs upon graduation and start working their way up. “We say that the future leaders of the company are already working for us part-time at one of our facilities around the world,” Ms. Rasberry says.

UPS develops talent by moving managers laterally, so they learn skills in new business areas. Managers use online profiles of each employee to spot candidates for new challenges. The profiles render people visible in departments other than their own.

UPS deploys talent by assigning workers to temporary problem-solving teams, assembling diverse teams to tackle its toughest problems. “We have a culture of being constructively dissatisfied,” Ms. Rasberry says. “Even if we’re No. 1 in an area, we’re always trying to think of a better way to do something.”

Today, more than ever, much of a firm’s value is in the intangibles, a major part of which is attributable to its human capital. If companies are able to master these four capabilities of defining, discovering, developing and deploying talent, they too can become talent-powered organizations, multiplying their talent to achieve high performance and significantly increasing their value and competitiveness over the long term.

By Catherine Bolgar