Capitalizing In A Candidate Driven Market

The quest for top-notch talent has never been as competitive as it is today. Continuous growth in the third party recruiting industry and the emergence of a multi-billion dollar electronic recruiting industry over the past few years reflect the severity of the brain drain. Never before have employers routinely offered high demand candidates lucrative perks such as signing bonuses, gifts, stock/shares, memberships, etc. in order to seal hires. Similarly, governments continue to raise ceilings on visa quotas for high demand professionals.

In reaction to this trend many sectors of the recruiting industry are expanding their business markets from a local/regional focus to a national and global one. It is becoming more commonplace to learn of firms merging and acquiring others in order to capitalize. These are practices virtually exclusive to large size firms. The satellite or sister divisions of national and multinational recruiting firms can lure talent to higher demand areas by baiting candidates with higher salaries made possible through more competitive markets, favorable exchange rates, better standards of living, etc. or variety of lucrative combinations. This ultimately provides a level of playing field that favors the global firm and limits the independent recruiter or small size firm.

In order for the independent recruiter to remain competitive in high demand arenas they must diversify their market focus by developing a more strategic contact base. This can be achieved primarily through partnering with other independents and small firms and the advantages are numerous. Horizontal markets can be strengthened through establishing relationships with firms that recruit in the same professional fields as one's own but focus on different geographical areas. Partnerships can strengthen vertical coverage between firms that share a common geographical focus but differ in the types of people they recruit. Generally the idea is to create a win-win situation where each partner benefits from receiving leads that the other considers residual or that would otherwise be left untouched. By the same token, it's not uncommon to find direct competitors splitting placements. This type of association pays its dividends when times are busy and when one comes across hard to fill positions. Recruiters don't think twice about splitting fees with coworkers.

The well-networked independent has key advantages over the multinational recruitment division. The independent recruiter retains the freedom of choosing market focus and in selecting partners. New partnerships can always be created and one-sided relationships can be terminated at notice. Strategic corporate decisions tend to be long drawn out processes burdened by red tape whereas the same doesn't apply in to the small firm partnership model. The fact that each partner remains an independent business alleviates the burden of overhead and the Internet provides an equal level of information infrastructure.

Like corporate recruiters, third party recruiters generally dislike breaking in new partners. Make it easier by obtaining qualified referrals from clients. If your clients have divisions across the globe you have access to an instant short-list. Similarly, ask them which firms they use for other types of placements and let them know you would like to refer business to them. Ask candidates that you've placed to refer other reputable firms they've used in the past. If you are a member of a national or international professional association you have yet another contact pool at your disposal. Hopefully your contacts will be put to good use! Nelson Abreu