Gina Riley | Gina Riley Consulting & creator of Career Velocity, a comprehensive career transition system. Follow me on LinkedIn.
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Many job seekers enter the job market with a critical misconception: They often do not understand who recruiters work for and who compensates them. This misunderstanding comes when job seekers feel most vulnerable while making decisions with significant professional and financial implications. It is important to recognize that recruiters are primarily engaged and paid by companies to fulfill their staffing requirements, not by individuals seeking employment opportunities.
Understanding the three common recruitment models and the compensation structure of recruiters is essential in reducing frustration and aligning expectations. Drawing from my experiences in corporate talent acquisition, temporary staffing services and executive search with Talence Group Executive Search and Consulting, this article aims to demystify the recruitment process so that candidates can more effectively engage with them. It highlights these recruitment models, clarifies the role and compensation of recruiters and offers insights into their operation using an analogy comparing them to sports scouts and player agents.
The Recruiter's Role: A Sports Analogy
In sports, scouts and player agents have distinct roles. Scouts are like recruiters paid by teams (companies) to find talent. They do the groundwork of identifying and persuading potential players to consider joining their team. The scout's priority is finding the best match for the team they represent. Conversely, player agents, paid by the athletes (candidates), represent and promote an athlete to teams. Their loyalty and incentive come from the individual athletes themselves.
This analogy effectively characterizes who recruiters work for and how they get paid. The agent model works in the sports industry due to the limited number of teams and decision-makers and most leagues' typical collective bargaining approach to negotiating salaries. In contrast, an agent working with a job seeker would face an intimidating task since countless companies could be a good match. With some exceptions, it is unreasonable to think an agent would know the entire job market. Alternatively, recruiters tend to proactively sweep the market to identify talent when they have a position to fill. They would not rely on an agent to approach them with individual candidates.
A Historical Perspective
The transition from newspaper want ads to the digital era has revolutionized the recruiting process. The late 1990s saw a significant shift with the introduction of the applicant tracking system (ATS). This technology allowed companies to manage vast numbers of applicants and filter for qualifications, expanding the reach of job opportunities.
However, the ease of online applications led to an influx of candidates, often overwhelming recruiters with quantity over quality. Today's recruiters, equipped with improved technology, can search for candidates globally. Their effectiveness now hinges more on their experience and ability to understand client needs than on the size or location of their firm. Recruiters are tasked with finding candidates, understanding the nuanced outcomes desired for each role and identifying the ideal candidate profile that aligns with those goals.
Understanding Recruitment Models
Now that you have a foundational understanding of recruiters, let's dive into the various models for how they work with companies.
Corporate Or 'In-House' Recruiters
These recruiters are a company's internal employees, focusing on identifying and screening candidates and managing the interview process. They balance a high volume of openings with tight deadlines, using both internal databases and proactive searching for passive candidates.
Contingency Recruiters
Operating on a sales-focused model, contingency recruiters are paid only upon a candidate's successful hiring and placement. They usually handle mid- to lower-level roles and are not paid upfront. This model can be effective for companies with high-volume hiring needs but comes with challenges and risks.
Retained Executive Search Recruiters
Used for senior-level executive or niche roles, these recruiters are paid a retainer to manage the recruitment process end-to-end exclusively. They focus on finding candidates who meet the qualifications and fit the company culture and leadership expectations.
In each model, the recruiter is paid by the company launching the search. A corporate recruiter is paid a salary, a contingent recruiter is only paid if their candidate starts their new role and a retained executive search consultant is paid in installments based on the candidate's anticipated annual salary (which does not impact candidate salary negotiations).
Approaching And Managing Conversations With Recruiters
Building a relationship with recruiters requires understanding their perspectives. They are more responsive when working on a role that aligns with your qualifications. Here are some tips:
- Approach recruiters professionally and courteously.
- Understand their process and preferred communication methods.
- Offer to assist them with your network connections.
- Be transparent about your qualifications and interests.
- Don't ghost recruiters, and handle rejections gracefully.
How To Get Noticed By Recruiters
To attract recruiters, especially on platforms like LinkedIn, ensure your profile is polished and reflects your professional brand. Incorporate relevant keywords, complete your education and experience sections and actively engage with industry-related content. Regular networking and tailored communication for each job application can increase your visibility to recruiters.
Recruiters work primarily for companies that pay them to find suitable candidates. Understanding their perspective and the recruitment models they operate within can help job seekers build more effective relationships with them. Always be proactive in your job search and networking efforts. Remember that recruiters remember candidates who make a positive impression.
In closing, if you are tempted to pay someone to "find you a job," reflect on the player agent model. Ask the hard questions before you invest: What are their success rates? Do they have a guarantee? What is their reach into the marketplace? How often will they communicate with you during your search process? What is their strategy for negotiating salary and benefits? Do they have testimonials?
Remember that you own your career transition outcomes. In the end, employing solid career transition strategies such as effective networking and building relationships with experienced recruiters is a more effective way to control your professional destiny.
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