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