Some people decide that they will pass the responsibility to Line Managers to manage their own recruitment agency rosters, others decide that it should all go through the HR department, whilst conversely some hire their own Consultant to do the recruitment internally. All the above are valid strategies but each has its problems.
So firstly let us address the problems associated with the three strategies mentioned above when it comes to large, fast growing companies….
Line Managers managing recruitment agencies
Of all the ideas this is probably the worst. Line Managers are not trained to deal with recruitment companies. This means that they could accept applications from companies outside of your PSL, they will (potentially) accept terms that go against company policy, they may not follow your processes and procedures with regards to documentation, and a mixed brand message will go out from each Line Manager as each is recruiting for one aspect of your company rather than as a single brand entity.
HR managing the recruitment agencies
This approach can work very well. An organised HR department with different members of the team assigned different responsibilities, with some being more focussed on recruitment matters (inductions, on-boarding, interviewing and engaging with the recruitment agencies), are others more involved with disciplinary actions, reviews, sickness, pregnancy etc. can be very efficient.
However, what happens more often than not is that the roles are not well enough defined, which means that processes fall down and the importance of recruitment is neglected in favour of day-to-day ‘current staff’ management from an HR point of view. Our recommendation, if you go down this route, is that HR Departments organise all the terms of engagement with the supplier agencies and then pass on the responsibility for briefing those agencies to the Line Managers and that both the Line Managers and agencies have a strict Service Level Agreement (SLA) to work to.
Having a strict SLA in place for both the recruiters and Line Managers ensures that the business gets the best possible service from the suppliers, whilst the recruitment agencies will be communicated with effectively enough via the standards set out in the SLA to keep them ‘bought in’ to your vision and growth plans.
Hiring a Recruitment Consultant in-house
Many larger companies are starting to hire their own Consultants to work directly within the business. This has a two-fold perceived benefit. Firstly, that they will save money on recruitment fees, and secondly that the process will be more efficient than briefing external agencies. Although it is true that a company can save money and fill some of its own positions by having an internal recruiter, it does however, have its limitations.
To be truly effective in searching for and selecting a shortlist of candidates for a potential role, your internal recruiter needs to be well networked in that space, respected in that space, knowledgeable of that space and be consistently meeting people from that space, to build a pool to select from. So the problem comes when you seek to have that recruiter working across all of your roles – they just cannot be as effective as a specialist from that area.
In-house recruiters should be channelled to certain areas of the business where they can add the most value, whilst the harder to fill roles should be managed by specialist agencies who are managed (with agreed terms of business) through the HR department/Line Managers.
Managed Service recruitment
Managed Service recruitment works brilliantly well for a growing business. If you have lots of recruitment on an ongoing basis, with multiple stake holders, multiple suppliers and a robust internal requirement for continuity in the ‘way things are done’ this solution may well suit you best!
Fundamentally, an MSP works in partnership with you to agree the internal process of getting an open position to market. This typically involves formalising the job descriptions, rationalising fee arrangements across all of your suppliers and managing the application process, from CV submission through to offer, acceptance and start date.
The MSP should also help you put together a Service Level Agreement (SLA), and should monitor the performance of both the internal stakeholders and the external agencies against benchmarks set within the SLA. Sometimes the MSP is one of the recruiters themselves and they will actively fill some of your roles, other times they just manage the process but in both cases the idea is that they are able to take full accountability of the end-to-end recruitment process, with the aim of increasing the quality of applicants and shortening the lead time from briefing the role to filling the position, whilst freeing up your key staff so that they can get on with the job they should be spending their time on i.e. their own job!!
The net result is that you reduce operational costs and you benefit from their knowledge of how to best structure a process that works for your business.
If you want to find out more about Managed Services and how Source might be able to manage this for you, please contact firstname.lastname@example.org