Recruitment Partnership

Situation –

  • A company was spending a huge amount of money on recruitment agencies in filling its many vacancies; each agency was just filling an occasional vacancy, so the company was not benefitting from any discounted rates.  The company was not benefitting from the agencies’ expertise in recruitment and there was no pooling/pipelining for when they might need new people.  There was no planning ahead regarding likely future vacancies.  The company was working with 40 different agencies, representatives of which were calling every week or so.
  • The company’s turnover rate was very high and new recruits were not staying long.  Its brand in the marketplace was poor.
  • The company had no statistics on time to hire or anything else; it didn’t even know what was being spent on recruitment, other than that most vacancies were costing 20-30% of annual salary to fill.
  • Much of the recruitment admin was being done by the company.

Challenge / objectives –

  • The objective was to implement a partnership with one agency, if one could cover all roles, or otherwise implement a (short) preferred supplier list; this was with the aim of saving money and manager/admin time as well as improving the company’s brand.

Work carried out –

  • Led a tender exercise, where one agency was found that could recruit for all roles.  Agreed a service level agreement.
  • Implemented the new process.
  • Management Information is being produced by the agency.

Results –

  • Early days, but the company is saving money, since recruits are now costing 11 or 13% of annual salary.
  • The agency is beginning to understand exactly what makes a good employee of the company and none of the recruits the agency has provided has yet left. 
  • The agency is improving the time to recruit and the quality of feedback to candidates, which eventually will lead to the company’s brand improving.
  • Managers are finding it difficult to just receive the best CV’s, rather than having numerous to choose between.  Hopefully this will settle down as the agency continues to provide good employees.