From our "tough questions" files
Subject: Another tough question...
To:staff@interbiznet.com
Dear IBN:
As a "bodysnatcher" working for a retained executive recruiting firm
for the entertainment and new media industries, I was curious that you
so confidently report on the eminent demise of the recruiting industry.
Since the bulk of the searches we perform are never advertised and are
usually confidential and since the majority of the candidates we
approach are currently employed, I wonder how you feel your service
could be beneficial to a senior-level recruiting firm. True we are
about to debut our website (xxx.com), but its purpose is for
publicity, exposure and to draw in accomplished executives for
inclusion in our database. We will not be actively recruiting through
the site. So, will the next Chairman of IBM really be recruited over
the Internet???
Hi,
While you offer a great question, it's a "softball" in some ways.
Recruiting, as you well know, has a number of steps ranging from
identification of the position (and its strategic importance) to filling
the "pipeline" with screened candidates to final selection and contract
negotiations. We believe that Internet / client-server technologies,
combined with demographics and structural changes in the nature of work are
conspiring to radically transform the Recruiting Industry.
In each of the steps (we identify 14 in our analyses), all firms currently
in the industry are vulnerable to competition in client transaction costs.
In fact, the cost of entry for players who aren't currently in the game is
significantly lower than the costs for firms who are solidly in the game.
It's much like the structural advantage held by the Japanese in the post
oil crash economy in the automobile market.
The "demise" of the recruiting industry is certainly a bit of hyperbole.
In fact, we see the number of transactions going up exponentially while the
cost (to clients) drops equally dramatically. The brokering of candidates
into critical unfilled slots will increase in the immediate future while
their average tenure decreases.
Do let me know when your website is ready for public exposure. We
generally tell our clients to expect that the cost of having a website will
be 15 times the initial development cost per year. If your goals are to
increase publicity, exposure and draw potential candidates into the site,
we'd imagine that you have a detailed plan to arrange about 800 inbound
links; changing and interesting content designed to attract the targets you
seek; and significant differentiators from the rest of the recruiting pack.
We can help in these areas.
We've reviewed all of the recruiting websites currently online in great
detail. We know what works and what doesn't, who your competitors are and
whether or not a website makes sense as an investment in your particular
case. We counsel many of our clients to use the technology in less visible
ways, focusing on their clients rather than their candidates.
Transformation is a more useful image than demise. For a retained search
firm, the technology is best used to lock your existing relationships in
place. You are about to enter an era of increased quantification and cost
competition. We know how to help you continuously increase the value you
deliver to your clients while reducing their transaction costs.
Hope this helps.
John