Research and Recruiting
Filed under: Recruiting, Recruiting Update, Services
Recruiting quality talent requires a great deal of research. Unfortunately, finding the right person for the job is not as easy as picking a random resume from a pile and giving the person a job. Performing these research tasks take time and effort, especially when you are targeting specific competitive companies to source from. When researching candidates from competitive companies, there are two services that Hire Velocity offers.
Name Generation is the first option offered by Hire Velocity. With Name Generation you specify competitive companies that you think will have the talent you are looking for. Upon getting this information we immediately begin researching to find candidates that meet the required job specifications. Hire Velocity uses a wide variety of search tools including job boards, social media, cold calling, and our proprietary tools. Leveraging our search tools, we identify the names, phone numbers, and emails of qualified candidates. The final product is a list of qualified candidates from the competitive companies you specified.
In addition to Name Generation, Hire Velocity also offers Talent Mapping. Similar to Name Generation, we research candidates that meet the required job specifications in competitive companies that you specify. Again, we use our search tools to identify the names, phone numbers, and emails of qualified candidates. Talent Mapping takes Name Generation to the next level and maps these names into the company’s hierarchy. This service can be extremely useful to visually see the hierarchy of the candidates. This service entails an even heavier load of cold calling and research to map names, but the results can be quite valuable to your recruiting efforts.
Active Sourcing and Screening
What is it?
Active sourcing and screening is a sourcing strategy that Hire Velocity uses to find qualified, available, and interested candidates. Hire Velocity uses several different techniques to find a wide array of candidates that best fit your position’s description. We have access to over 200 job boards and have content partnerships in place with over 5,000 job-oriented websites. This gives us access to a large pool of candidates actively looking for a job. We also utilize social media such as Facebook, Twitter, LinkedIn, and blogs to find candidates that have the skills needed for our client’s positions. For an even more thorough search, we use our proprietary sourcing tools and our client’s application tracking system to search through resumes and find qualified candidates.
Upon identifying qualified candidates from our extensive searching techniques, we will telephone screen each candidate to assess his or her skills, education, and experience. The result is a list of qualified, available, and interested candidates for your open job positions.
How is it used?
Active sourcing and screening is used to find qualified, available, and interested candidates for positions that our client’s would like to fill.
Why would an organization use it?
It can be time consuming and expensive to source and screen a big pool of candidates and narrow it down to only the qualified, available, and interested ones. Hire Velocity has the resources and experience to be able to efficiently find candidates that meet our client’s specific needs and wants. Active sourcing and screening can save you time and money by driving down your recruiting costs by as much as 50%. We believe in speed and quality and pride ourselves on the ability to deliver quality candidates fast at a reasonable price.
Cost Per Hire
While calculating cost per hire (CPH) is not an exact science, it can be a valuable instrument that gives insight into the cost of the hiring process for various positions and do some comparisons. Cost per hire can also allow companies to evaluate how effective they are with various sourcing strategies in the hiring process. However to be most effective, a company should look at all of the factors that contribute to the cost per hire.
Many contributing factors have to be considered when calculating the cost per hire of an internal recruiting team. The first factor is the recruiter who is a fixed cost since he or she is an employee of the company. Then hardware related costs have to be added in such as the computers and the telephones. Expenses to get the word out about open positions like job fairs, job boards, referral bonuses, and the applicant tracking system will also need to be added into the cost per hire calculation. Finally add in training, on-boarding, and turnover costs. Once all those costs are added up, the total cost per hire can be determined. This total cost per hire is essentially the same whether a company is hiring an inexpensive person or an expensive person because it is the same person doing the recruiting. When recruiting internally, it is also important to remember that the recruiter is a fixed capacity so he or she cannot handle any surges in hiring.
The alternative to recruiting internally is using a recruiting agency for hiring needs. The cost per hire with a recruiting agency should encompass most of the items that are calculated into the cost per hire of using an internal recruiter
One option is using a contingency firm, who gets paid only when someone is placed into a position. Contingency firms typically charge 15- 30% of salary. This means if a company is hiring an employee who will be paid $50,000 a year, the contingency firm will charge between $7,500 and $15,000 per hire. This can be a very hefty fee. The other option is to utilize a recruitment process outsourcing (RPO) firm. An RPO allows companies to outsource a part of the recruitment process or the entire recruiting function. RPO’s typically result in a cost per hire of 5 – 10% of salary compared to the 15 – 30% that a contingency firm charges. Using the same $50,000 salary as before, an RPO would typically result in a cost per hire of $2,500 to $5,000. Even by comparing the lowest CPH for a contingency firm with the highest price for an RPO, there is a minimum savings of $2,500 over a contingency firm.
When a company is faced with any level of volume hiring, the savings to the firm with an RPO exponentially increase. This is one of the areas where real value is delivered. Think of the cost savings of using an RPO versus a contingency firm to hire, for example, five sales personnel with $50,000 salary. This could be a savings of $7,500 to $50,000!
Utilizing an RPO such as Hire Velocity, a company can achieve a more cost effective cost per hire while delivering flexibility and scalability in meeting hiring needs…especially in this market when many internal recruiting teams are at their smallest size. Additionally, the RPO helps the company avoid any of the fixed cost elements of the Cost per Hire calculation.
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