Why the recruitment market is trending towards exclusive supplier arrangements

There is now a huge potential recruitment database accessible to all - LinkedIn. Zenopa detail the recruitment considerations this creates.

The prevalence of LinkedIn in the lives of those in work or looking for work means that:

  • We can all have a go at being a recruiter, or employing someone within the business to be a recruiter. This employment is a form of “exclusivity” with payment upfront (for your or your employee’s time) independent of an outcome.
  • People are frequently presented with new employment opportunities. This has modified many experienced candidates’ behaviour from actively making employment enquiries to waiting to be approached.

The consequences for recruiters as a result of this include:

  • Approaching candidates directly rather than advertising for them
  • Ensuring that their recruitment databases offer more than LinkedIn does
  • The recruiter needing to be more skilled at engaging with candidates and maintaining relationships with them

There are pros and cons to this, but bear in mind that the application and capability of the individual recruiter probably has the greatest impact on the recruitment outcome. To that end, the following is a breakdown of the differences between an internal recruiter, exclusive external recruiter, or multiple external recruiters.

Financial considerations

Exclusive internal recruiter

All payments are made in advance through a salary, so they can play the long term game, taking years to groom individual candidates to join the organisation. Objectives are not strictly based on returns, and the cost allocations are frequently absorbed into a global overhead.

Exclusive external recruiter

There should be regular client placements, so as to act as an income stream. They will invest resources to work a pool of candidates for a long period, and work that pool harder for the job opportunities available. The focus on a specific client is tied into the period of client loyalty.

Multiple external recruiters

No financial security. They have to look at the opportunity as the here and now and make judgements on investing time/resources appropriately.

Employer knowledge

Exclusive internal recruiter

Should have the best knowledge of the employer, putting them in the best position to promote the opportunity. Knowledge will include specifics on the company, team and role, as well as details of the employment package.

Exclusive external recruiter

Should have good knowledge of the company, having been on site, met the hiring managers, and gained cultural insights into how the company operates.

Multiple external recruiters

Knowledge can be poor and mostly gleaned from job specs that could apply to any organisation. There is frequently no direct communication with the hiring manager, and they routinely will not have physically visited the client site or met people within the business.

In a position to competitively promote a job vacancy?

Exclusive internal recruiter

Their ability to promote a role against other employers’ can be hindered by a lack of knowledge of the general market, which may not be part of their day to day role.

Exclusive external recruiter

Promoting roles against other employers’ should be more knowledge based, and if one opportunity is not right for a candidate, they should be able to offer alternatives, thus creating an opportunity to build a strong relationship. Within the exclusive arrangement, an external recruiter will be highly motivated to promote your job opportunities.

Multiple external recruiters

Promoting your job opportunity versus other employers’ opportunities as an “independent” should be the strongest selling position. Motivation for multiple external recruiters to promote your vacancy is based on the opportunity to secure your fee.

Candidate heritage

Exclusive internal recruiter

They usually approach candidates from scratch, but may then build up a relationship prior to employing them.

Exclusive external recruiter

Dependent on the brand. They may have long standing relationships with candidates, having secured them interviews and jobs in the past.

Multiple external recruiters

Dependent on the brand. They may have long standing relationships with candidates, having secured them interviews and jobs in the past.

Tools to identify and communicate with the appropriate candidate

Exclusive internal recruiter

They usually work from LinkedIn, but are restricted to this channel.

Exclusive external recruiter

Dependent upon what databases and communication channels they use in addition to LinkedIn, and how much additional efficiency/value this brings.

Multiple external recruiters

Dependent upon what databases and communication channels they use in addition to LinkedIn, and how much additional efficiency/value this brings.

Operational efficiency

Exclusive internal recruiter

Engaging with multiple candidates can be inefficient for an internal recruiter, particularly for one-off positions. But there are no business development costs.

Exclusive external recruiter

Offers efficiency when engaging with candidates, but brings the highest business development costs in securing exclusive business.

Multiple external recruiters

This option offers maximum efficiency when engaging with candidates. Business development costs should be lower.

Zenopa is a recruitment agency based in High Wycombe.

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