There are four hiring problems identified by hiring managers:
Time to Hire
Cost to Hire
Lack of Candidate Choice
Lack of candidate choice. A shortage of skilled candidates in IT, Data and Development.
Targets, projects and business objectives are being missed. Prioritising short term issues over training and long-term vision, leading to team burnout, retention issues, and lost institutional knowledge.
There is a shortage of ‘active’ candidates on the market, and those that are less likely to be the superstars you’re looking for.
Time to hire is too long. (Top candidates are on the market an average of 10 days.)
By the time you’re ready to hire an IT, Data or Development superstar, your candidate of choice has already gone off the market.
There is no reason you cannot conduct a thorough recruitment process and snap up a top performer within 10 days.
Mis-hire risk is rising.
Mis-hires swallow your time hiring and replacing them, and with studies showing mis-hires can cost 3-5 times the candidates annual salary.
On top of that, even mis-hires that only stay briefly have their negative impact felt through decreased moral, missed project deadlines, and more stress on the current team members.
Cost to hire is rising.
Competition from other hiring companies. The top candidates’ phones are ringing with opportunity after opportunity. Unemployment is at record low and the competition is fierce.
Missing out on top candidates.
Being rejected by candidates because they have multiple offers.
A traditional recruiter will only fill 10-20% of the openings they work on and they don’t have the time to consult and provide detailed feedback to a client if the search is not realistic.
Recruiters are incentivized to present candidates as quickly as possible without fully vetting them, so as not to lose out on ‘candidate credit’ (beating the other agencies).
If the first batch of CV’s are not right, a traditional recruiter moves on. Search activity usually ends when a few candidates are presented and will not resume unless one of those candidates is hired.
Traditional recruiters will then ‘Candidate farm’, sending the same candidate to multiple clients whilst sacrificing deep candidate understanding and control of the process in favour of outright speed.
Active candidates who form the bulk of traditional recruiter’s candidate base are, by definition, actively applying for multiple jobs – receiving multiple offers and driving salaries up. ‘Candidate farming’ practices then further drive up salaries by causing bidding wars over average candidates.
An emphasis on generating quick candidates with no care in selection results and short nominal guarantees. As soon the fee is paid, the recruiter is long gone.
Due the high volume model traditional recruitment is built upon; traditional recruiters can’t afford to do a true deep search for superstar candidates on every role. They’re incentivized to gather the best candidates they can easily get, usually from the active candidate market (18% of the total candidate market), overlooking the passive candidates who can really make a difference.
Reactive instead of proactive recruitment. No time spent developing a recruitment strategy with continuity and talent pipeline.
Recruiters only having access to 3 traditional methods:
Job Postings – Coping and pasting a clients’ open job advert, changing a few slight details, and banking on tagging the candidate as theirs before they apply directly or through another recruiter.
Emails / InMails – Sending ‘spammy’ mass emails or InMails with a very low reply rate.
Cold-calling on Job Boards – with success rates are completely dictated by the skills of the person making the call. (If they even get the person on the phone, which is increasingly rare).
Time driven, not quality driven candidate journey.
When presenting candidates, recruiters are incentivized to not be transparent about candidate sources,
Recruiters who act less like your partner and more like a broker trying to make a quick buck.
Most “IT recruiters” are actually generalists with little understanding of the specific skill sets within IT, Data and Development disciplines.