The Recruiting Matrix

Recruiting is all about relationships. It is all about building enduring relationships with companies and with applicants. But often there is an unhealthy focus on filling the vacancy.

A major part of the reason is the recruitment sales model, which is sadly broken. Most recruiters are focused to get vacancies, then to get candidates, and then to close the deal. During this transactional approach, there is insufficient focus on developing meaningful relationships. And because of the model, if there is a change in either recruiter of company manager, the whole process is duplicated.

When I speak with other HR managers or hiring managers, there is an unanimous view that many recruiters are not interested or able to develop a consultative approach. There is little in terms of adding value and adopting a more considered approach.

For example, it would be an exception to the rule to meet a recruiter that asked me as part of the briefing what the outcome was of the exit interview. There is a general discussion, but no deep analysis or understanding of the trigger for the vacancy. In most of the cases, the recruiter is ready to present their shortlist. There have been a few times when I would even receive a number of CV’s before the briefing, though the recruiter has never done any recruiting for the business. Very proactive but also perhaps just a little bit premature to demonstrate real consulting skills. The first step in consulting is to fully understand the problem.

Recruiters need to be able to reflect, develop and build contacts, have a real knowledge of their clients and most importantly, be a consultant by adding value to the recruitment process.

In The Matrix (1999) the following scene takes place:


Spoon boy: Do not try and bend the spoon. That's impossible. Instead... only try to realize the truth.
Neo: What truth?
Spoon boy: There is no spoon.
Neo: There is no spoon?
Spoon boy: Then you'll see, that it is not the spoon that bends, it is only yourself

As this blog post is about the Recruiting Matrix, I include the following matrix to highlight the considerable shift in relationship moving from just another supplier to being a recruitment partner.

The relationship can best be depicted as an arrow as we aim for a strong partnership. The deeper the relationship, the more likely is the mutual benefit for both parties. We need to change our thinking, by bending ourselves.

In a previous blog, Are you a gold recruiter?, I highlighted that there is a huge business cost in dealing with a large number of recruiters. In a previous company we were dealing with more than twenty recruiting companies! Every week I would meet with a different recruiter, either updating them on the business, or worse, having to explain the business to a new recruiter.

So here is a real challenge for each recruiter in 2010 – take a bit of time to see how much of your business is in the first or second columns, versus more value added relationships in the last two columns.

And for HR departments, if your recruitment budget is tight and you are dealing with a variety of recruiters, you may just be missing out on the great opportunity to have a real recruitment partner in your corner, helping you to attract and retain great talent.

Surfing the jobs wave in Australia

The last few days in Australia has highlighted a strong surge in jobs as the economic recovery is on track. The stimulus package was intended to keep people working.The results were a surprise to the markets as there was an expected lag effect.

The headlines on Friday 11 December:
- Jobs surge as recovery gathers pace (Australian Financial Review)
- CEOs warn on jobs squeeze (The Australian)
- Sting in jobs cheer (Business Daily Herald Sun)

The pertinent facts and figures are:
- Almost 100,000 jobs have been added to Australia’s economy in the past three months
- A hefty 31,200 jobs were added in November
- A solid 30,800 full-time positions made up the bulk of new positions
- Victoria state added the most new jobs

Unemployment
The unemployment rate dipped to 5.7% – the same as earlier in March this year, and down from 5.8% in October. This rate is a major contrast to the formal projection of 8.5%, which seemed high at the time. These figures are revised every six months and mid-year financial outlook will be released towards the end of the year.

Most economists expect a peak of a little over 6%. The Deputy Prime Minister stood by official forecasts that unemployment would reach 6.75% in the middle of next year. However, as it is now clear and undeniable that job losses have bottomed around July, these figures can only be political justification for the on-going spending by Government.

Implications
The fastest job growth in three years has significant implications for employers and employees – higher interest rates, skills shortages, pay demands, higher turnover, and more recruiting.
Higher interest rates – rates will continue rising and we have seen the Reserve Bank moving away from other major central banks lifting rates in October, with a rate rise only a week ago.
Skills shortages – some CEO’s are already concerned that we will experience skills shortages in certain industries, particularly with increased demand from resource projects.
Pay demands – as many companies implemented pay freezes over the last year, new staff insisting on higher pay packages will put pressure on pay equity for existing staff. Companies will also need to consider some catch-up increases to avoid lagging the market. Unions have been reasonably conservative with their pay demands and will leverage any shortages of trades people to target higher pay increases.
Higher turnover – as the general confidence improves there will be an increase in staff turnover, as many employees are waiting for the new calendar year to start looking for new job opportunities
More recruiting – there has been strong anecdotal evidence from my recruiter network that there was a significant pick-up in the number of current assignments. The top end is still patchy but also starting to get some signs of life. We all look forward to a busy 2010.

Outlook
In summary, the economic recovery is gaining momentum and we appear to be sailing into 2010 with a better outlook as a year ago, which must be good news.