From Shortlist: Thursday 04 October 2018 2:47pm

Recruitment’s shift away from employing ‘outdated’ 360-degree consultants is potentially the most important transformation the industry will face, according to an advisor.

The 360 model is broken, and has been for some time, says Navigator Consulting MD Tony Hall. “It’s really time to start looking at different options.”

Good 360 recruiters are as rare as hen’s teeth, he says, and he suggests the pressure on recruiters to fit the model is one of the biggest contributors to high staff turnover. “It’s so rare for someone to have all the different skills required to be a high-performing 360 recruitment consultant.”

Agencies are increasingly deconstructing the 360 model, breaking the process into admin, resourcing, recruitment and sales roles, though with varying degrees of success to date, he notes.

Many labour hire companies have been operating in this way for years – “they have business development managers that understand the industry really well… and they might even be from the industry they are selling into, so they’ve got a lot of credibility” – while larger agencies are more likely to succeed with dedicated business development managers, following the US blueprint.

For smaller firms, Hall recommends the most senior people spend their time out in front of clients, and avoid putting junior consultants into “difficult sales situations that are way over their head”.

Small companies should be hiring people into resourcing or account management roles, to start, while senior leaders outsource their resourcing so they are freed up to do the sales part of the 360 process.

(Hall is a big advocate of offshoring, particularly for “very administrative and repetitive tasks”, such as market mapping, database building, database maintenance, and even sourcing. “I think offshoring is one of the success secrets of reducing staff turnover in the recruitment industry,” he says.)

Building the right commission structure

“If there’s no sales responsibility for a recruitment consultant, then their commission structure should be at a lower level than a recruitment consultant that’s required to bring in the business and fill the role as well,” Hall says.

He suggests recruiters on “relatively high wages” are already incentivised to fill jobs. “So you might have more of a bonus structure than a commission structure for people that are not actually selling.”

That said, Hall agrees the 50/50 commission structure adopted by some agencies including Aquent will promote team work – provided leaders monitor placement ratios. “Managing efficiency is really important, because a great salesperson might bring in multiple roles, but if they’re not filled by the recruiter, then the company is paying wages for both… and not getting any return on investment.”

Hall also advises hiring biller leaders with a track record of success (a minimum six years’ experience), rather than looking for potential high performers to train up into sales-focused roles. “Young stars are hard to find,” he says. “[Graduate programs] are so hit and miss.”

It’s certainly unlikely the one graduate will have the 20 or so attributes required of a 360 recruiter, Hall says. “It’s relatively easy to find people that start off their career resourcing, and the good ones can be promoted into… senior recruitment or senior sales streams, or leadership, depending on their attributes.”

Breaking out the recruitment process also provides career progression, which Hall says is sadly lacking in the industry. Then focusing on supporting high performers, rather than underachievers, will keep them performing and encourage them to stay.

Part of this includes regular training, both formal and informal. “Short and regular training can make a massive difference, in terms of business profitability and reduced staff turnover.”

He suggests regular weekly sessions, even for 30 minutes, will bring the team together, foster communication, and upskill even the most seasoned recruiter. “It’s an absolute critical success factor.”

Hall is facilitating discussions on the “obsolete” 360 model, and its alternatives, at upcoming Captain’s Table events in Melbourne (30 October) and Sydney (31 October) for agency owners and leaders.

From Shortlist 30 August 2018

Recruitment agency leaders are meticulous around developing budgets and financial plans, as well as measuring consultant activity, but more work is needed to improve performance across all areas of the business, new research shows.

The Recruitment Industry Business Confidence Index survey (RIBCIX), run by Navigator Consulting MD Tony Hall, reveals many leaders are falling short in implementing marketing, quality assurance, exit strategy and operations plans.


Source: Navigator Consulting

The RIBCIX survey is still collecting data for the current half-year, and recruitment companies are invited to participate here to receive the full report.

From Shortlist Wednesday 25 July 2018

The biggest threat to the recruitment industry is the increasing number of employers bringing recruitment in-house, and emerging technology is the additional impetus for making agencies the second option, an industry advisor says.

At a recent Captain’s Table event, chaired by Navigator Consulting CEO Tony Hall, agency leaders gathered to discuss the biggest threats to the industry, and what to do about them.

Several key themes emerged as attendees discussed what the industry should be doing to counteract the growing number of clients that are bringing recruitment functions in-house.

The first step is to build stronger relationships with clients, Hall says, “so we as recruitment agencies are the first port of call, as opposed to the last port of call, when it gets too hard for them”.

Agencies should also be working better together to solve client and candidate requirements, to ensure the industry thrives, he adds. “If we’re not filling roles that we say we can fill, then we’re providing even more ammunition for companies to say ‘we might as well do this ourselves than pay recruitment fees to companies that aren’t delivering’.”

Filling more jobs is absolutely critical in encouraging companies to use agencies more, the leaders agree.

Leveraging technology well enables better recruitment service delivery, Hall says, and points the way to adding more value for clients, “so we can justify the high margins that we would all like to have”.

Transparency builds stronger relationships
Painting a fuller picture of exactly what it is that agencies do and the effort required to fill a role is also vital, as is communicating that effectively to clients, says Hall.

“Are we articulating how much work goes into a recruitment assignment?” he asks.

This should start in client proposal documents that outline all client services at beginning of an assignment, and be reiterated through detailed invoices that provide a list of services involved, line by line. “That’s just absolute gold,” Hall says.

Hall urged recruiters not to send invoices that simply say, “recruitment fee, $35,000”.

Getting out and meeting clients face-to-face to build relationships is the optimal way to get their buy-in.

“I wonder how much consulting we actually do these days, as recruiters,” says JobAdder CEO Brett Iredale. “All day every day we’re walking around recruitment floors, the pods are all full, and everyone is there tapping away and not out talking to people.”

“Recruitment consultants now are relying on email, phone, LinkedIn, whatever, way too much, at the detriment of relationships, perhaps,” Hall adds.

Collaboration is better than competition
A more organised approach to industry collaboration – rather than purely focusing on competition – is more beneficial to recruiters, says Elias Recruitment CEO Jason Elias.

Efforts to win work on an exclusive basis are a better driver of competition than fighting over the same vacancies simultaneously. “It’s great for job boards [but] candidates get confused when we all fight over the same people,” he says.

“As an industry, we shouldn’t be like seagulls going for little chips,” says Elias.