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Recruitment’s shift away from employing ‘outdated’ 360-degree consultants is potentially the most important transformation the industry will face, according to an advisor.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

Unemployment Down – Job Vacancies Up = Staff Shortages

Australia’s unemployment rate is close to a 10 year low of 5.4%. It is often argued we are actually close to full employment because a large portion of this group choose to remain unemployed for many reasons. Over the past 12 months, there have now been 239,373 jobs created, in seasonally adjusted terms, at an annual growth rate of 2% – up from 0.9% in February.

A quick look at seek.com.au shows a whopping 168,173 job openings Australia-wide.

Growth Sectors are:

Engineering, construction, mining/resources, energy, infrastructure, ICT, healthcare, manufacturing, transport logistics and trades.

If you are supplying to these sectors it is prudent to stand out from your competitors and maximise new business efforts while the market is strong.

Declining Sectors are:

Retail and consumer

Retail is under considerable pressure due to the convenience and low price of online shopping, with weakness in this sector unlikely to improve.

By state:

While NSW and Victoria continue to dominate, QLD remains strong and double digit recoveries in job advertising were reported in WA and SA.

Sourcing Of Staff

For firms looking to source staff, the market is now competitive as many previous economic boom times. Growth is likely to become restricted by the lack of supply of talent with specific skills in new business development.

Typical methods of sourcing staff are:

1. Advertising  – fast and low cost but patchy responses and only attracts candidates actively looking for a new job.

2. Headhunting – slow and expensive but allows firms to cherry pick high performers on competitor companies

3. Word of mouth referrals – slow and but the source of strong performers

4. Recruiters – costly but not so if they save you significant time and deliver hard to find talent to grow your business

Action

The only way to profitably grow any business is to maintain operational efficiency and add high performing staff. Staff turnover is inevitable in such a strong market which makes new hiring activity and even higher priority.

For ideas on attracting high performing staff into your business, please email me anytime on th@navigatorconsult.com

Tony Hall is Managing Director of business growth consulting firm Navigator Consulting.

Please contact us for more information on:

– Sourcing high performing sales and recruitment leaders

– low lost, highly efficient, offshore resourcers, researchers and admin staff

– standing out from competitors and winning new business with Recruitment Industry Best Practice Certification

 

High-res-PNG-Blackimage001

By Tony Hall, Managing Director, Navigator Consulting

I just had such a great experience designing a new logo for our unique Recruitment Summit@Sea and Navigator’s Best Practice Certification.

Previously I used a local designer and paid hundreds of dollars and the process took weeks of frustrating edits. I think I even paid for the agency account management team to fly in from another state.

Then I recently discovered freelancer.com.  Ok so this Australian listed (ASX:FLN) success story has been around for quite some time  but you know how it is when you have heard of a good tech solution but have never had time to try it.

It was so easy. Simple registration, post the project and within minutes bids for the project flooded in from all over the world.

You can even post a cash prize for the best design and award it to the winner.

For less than $200 I chose Divya from India based on his good communication and excellent reviews other customers gave him. There were designers from every country imaginable.

Divya was a joy to work with – took a clear brief, communicated well patiently made changes and delivered outstanding work on the two logos above. He is the perfect staff member – never complained or took sick days and was always happy to help.

Also added to our virtual team is Ilian from Bulgaria – a very talented web developer who is extremely skilled, communicates in perfect English and provides first class customer service at a very reasonable price.

Our business has now outsourced:

Accounting to Xero

Graphic Design to Divya in India

Web Development to Ilian in Bulgaria

Marketing to Jane in the Philippines

Marketing comms to local interns

… all of which enables are senior people to spend more time building relationships and helping recruitment business leaders.

I cant help but think this is the future of many types of work – outsourced and offshored – high quality, great service and low cost.

LOGO colour

www.navigatorconsult.com