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Staffing/Recruiting Buyer's Guide
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Introduction

When building a business, most employers find themselves, at one time or another, with a few or maybe even a list of positions to fill. To some, this list signifies the daunting task of trying to find qualified candidates in as short a time as possible. But if you learn about your different options, you can use that knowledge to craft the best strategy for your business and surmount what once seemed like an overwhelming hurdle.

Today's recruiting options are abundant, both online or offline. What's the best strategy?

The truth is that there isn't one strategy that is necessarily better than the others. Perhaps a combination of several tactics would be the most effective course of action. The first step is to learn about and understand your options. Then you can decide what works best for you given your resources and your budget.

Kinds of recruiting firms

Some recruiting firms specialize in finding candidates in certain industries while others search a far broader spectrum, from administrative assistants to executives. The different kinds of firms include:

  • boutique firms,which specialize in placing candidates for a particular industry or job specialty
  • generalist firms,which work to meet hiring needs across almost all industries
  • executive search firms,which specialize in searches for high-level positions. Most executive search firms are paid on a retainer basis, which means they are paid in stages as the search advances.

In-house efforts

It's easy to settle for cookie-cutter job descriptions when you post an ad in the newspaper or some other print media. But this can be a waste of a valuable resource, especially since the cost goes up as your space increases - so you should make every line count!

And don't have just anybody on staff write the job descriptions. In your efforts to draw superstar talent, you should have your most creative writers put together engaging job descriptions that will attract people with specific skill sets.

Broaden your reach into the pool of candidates by taking advantage of different forums. The telephone doesn't have to be the only facilitator between your recruiters and potential candidates. Whether you have a recruiting staff of one or of many, encourage your recruiters to have more one-on-one contact with potential job candidates by going to job fairs or meetings of trade organizations, for example.

Recruiters should also be encouraged to use the Internet to participate in newsgroups, bulletin boards and other online communities to attract potential applicants.

Online recruiting services

If you decide to go with online recruiting, your reach is practically unlimited as job hunters are not restricted to only technical folks. These days, the Internet attracts a much broader audience, from administrative assistants to marketing managers.

Plus, resume databases are getting to be massive in size, so there's no shortage of candidates to choose from. The question is: Are they qualified?And are they a good match for your company?

Most online services allow you to post and edit job postings in real time, but others still require you to submit postings by fax or e-mail. After you post your jobs, the process varies depending on the particular service.

Many online recruiting services have compiled member profiles, which detail candidates' skills and desires, and the recruiting consultants use special software to match qualified individuals with the appropriate job. So searching for and qualifying leads, including reference checks, is all handled for you so that all you do is review the interview-ready candidates and decide who you want to meet.

After deciding on the target profile that best matches your job opening, some services say you can expect to receive resumes in about five days. Some services set their prices according to the number of resumes you will receive. One such service, for example, offers 10 qualified candidates for business searches for $3,495.

Other services are less involved in the actual search. You can post a job on their site, which can cost about $300 for a 60-day posting of one job, and applicants will send their resumes to you. Then it is up to you to take over the screening process to select the people you want to interview.

It's hard to beat the price of this method of Web recruiting since this kind of online advertising is significantly cheaper than traditional newspaper ads or headhunters. But keep in mind, there's a lot more footwork involved with these services so make sure you have adequate resources to handle the screening process.

With the thousands of online job sites, it's difficult to select the one that's going to produce the best leads. Just because it's easy and cheap doesn't mean it's effective.

The best way to get a feel for an online service?Use the site as if you were the applicant. If you think the service asks the right questions to lead candidates in the right direction then you can take comfort in the fact that other job applicants will probably have the same experience.

If you have the time and resources to pore through the resumes yourself, then that would be the cheapest option. If, however, you don't have the manpower or the time, paying more for a handful of solid leads is a better strategy.

Offline recruiting services

Opting for an offline service introduces a much more hands-on approach to recruiting. Instead of using a database to match up resumes with job descriptions, an agent will physically sift through resumes and narrow your pool of applicants to just a handful of candidates to interview.

Not only will recruiting services look through resumes to find suitable candidates, some of them even consult their network of industry contacts to find people who are qualified to fill the position. Many times, the star players may not be actively looking for a job, but they are still open to considering better opportunities. They aren't looking in the newspaper or trade journal for a job, but chances are they'll be responsive to a recruiter who approaches them with news of an opportunity.

Recruiting firms, which are usually paid on a retainer basis, are generally paid about 30 percent of the candidate's first-year salary. The retainer fee is paid upfront. Contingency firms, however, which are compensated only when the position gets filled, are generally paid about 20 percent to 30 percent of the candidate's first-year salary.

Mix the best of both worlds

If you're not sure whether traditional in-house efforts, an online service, or an offline service is the best way to tackle your staffing needs, perhaps the answer is "D" -- all of the above.

While there is an increasing number of online recruiting services, more candidates are still finding their new jobs by good old-fashioned networking, according to Forrester Research in Cambridge, Mass. So combining the best of both worlds could be the key to maximizing your reach for the most qualified candidates.

Quick tips

Bigger isn't always better
When selecting a recruiting service, don't just go with the biggest firm. Smaller firms may have a more focused pool of candidates, in terms of geography and industry, which means you won't have to sift through a stack of leads that cover too broad a spectrum.

Is there a volume discount?
Some online services set their price according to the number of qualified candidates they will recommend to you, 10 candidates for about $3,500, for example. If you need multiple searches, however, some might offer you volume discounts.

What if it doesn't work out?
Ask about the agency's policy if the person you hire ends up being a bad match for the company. Do they offer a replacement or a partial refund? This should be a primary concern because there's always a chance that the candidate might not work out.

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