Winning the recruitment tug of war
As a specialist search firm within financial services, we are finding that over the past six months candidates we approach have recently been contacted with two or three good opportunities that they were considering, especially at the business development and practice management level, where there are a number of opportunities.
These candidates are successful in their current roles and highly sought after. So, how do companies ensure they recruit the best?
Even more so in this environment, they must have a focused approached to their recruitment strategy, which should include the following.
~ Ensure the recruitment assignment is given out to one company only on an exclusive basis, so a concentrated approach will be taken.
If you give the assignment out to two or three companies you will not get the best candidate, it’s unprofessional in the candidate’s eyes and the assignment will drag on.
If the role isn’t exclusive to the recruitment firm, then the candidate will not be exclusive to you, which means the recruiter will be introducing the candidate to several clients.
In addition, the candidates are not properly briefed on your organisation.
Remember, even if you don’t hire the candidate, you want to leave them with a favourable opinion of your company.
~ The company that you partner with should have a strong network and successful track record in financial services (that is, be a specialist).
Ensure the firm you are working with has a good track record and that the consultants have a financial background themselves.
Do reference checks. Make sure they have been in business long enough to have a track record.
It is very costly if you make a mistake. The consultant approaching the candidate on your behalf is instrumental in the process; if they don’t project the right image then you will be disadvantaged.
~ Work with the search firm to ensure a quick process and make sure the interviews move within a timely manner.
You will lose good candidates to your competitors if you don’t interview them quickly.
~ Do not think that you need to have a shortlist of three candidates, there may only be one or two.
If you interview one great candidate, don’t wait to see who else is out there. You may find you lose the best candidate by waiting and then have to settle for second best.
Trust that your consultant has sourced the best candidate; after all, you hired them for their expertise.
They should be able to give you a report on what work has been done and the results of their search. This will give you an indication of what is happening in the market and feedback on the job you are offering, along with the perception of your company.
Most assignments these days will require a search process, with candidates being tapped on the shoulder and presented with an opportunity. If you don’t utilise a focused approach, the candidates approached will not get a good understanding of what is on offer and will back away.
Counter offers are another issue companies are facing.
At offer stage you need to ensure that the candidate is not going to accept a counter offer.
If you are working with an experienced consultant they will try to ensure that counter offers are discussed early.
However, the company needs to be aware that candidates will justify accepting a counter offer if they feel that the company has dragged their feet in the interview process.
They begin to lose their excitement about the new opportunity if they feel the company can’t make a decision and will start to question if the company is indecisive all the time.
Counter offers become attractive because the rival company will make them feel all warm and fuzzy again.
You need to keep the momentum going and let them know you are serious about them joining your team. Let them know the reasons your company is a better option than their current employer.
Once the letter of offer is signed, that doesn’t mean it is necessarily a done deal.
There are unscrupulous headhunters out there who will continue to approach candidates knowing they have just signed for another role or have only been in a role a short time.
You need to make sure that your new employee is settling in and keep in close contact with them to see how they are going.
The smallest issue can become big in the settling in period, so make sure everything that you told them would happen when you interviewed them happens.
You are more likely to lose a candidate in the first three to six months as they have not bonded with the company yet, so put in place the welcome mat and make sure they feel good about their decision so they don’t take any more calls from competitors.
I would like to express a word of caution to those candidates who do sign a letter of offer and then back out to accept something else or accept a last minute counter offer from their current employer.
Be very careful before signing a letter of offer and make sure you are 110 per cent committed.
You will do damage to your reputation if you withdraw after you have signed. In addition, you have affected a lot of people in the process who won’t be happy.
After 15 years as a search consultant within financial services I have learnt that a counter offer rarely benefits a candidate.
Candidates who accept other offers after they have signed a letter are seen as unethical and the recruiting company will never consider them again. There is a cost to the company and they have more than likely let other candidates go and will have to start the process again.
The industry is big, but small, and even though you think you have benefited, long-term damage has been done.
Moreover, a very small percentage of candidates are still with the company after six to 12 months of accepting a counter offer.
As candidates, you should make sure the position is exactly what you want.
If you think a counter offer is a possibility then don’t sign the letter or accept verbally until you know for sure the new job is for you.
Be up front and honest with the consultant and the new company.
Let them know you are considering other options and that your company may try to keep you and you would need to weigh up all opportunities to make the right decision.
Remember, in most cases, you as the candidate have been approached and are not necessarily looking for a role.
However, once you agree to commit to a process of interviews, then you are expressing interest, so be up front and honest.
Companies will respect your honesty, and if you don’t take the new opportunity, at least you make a good impression for further opportunities rather than being written off, never to be approached again.
Judith Beck is the managing director of Financial Recruitment Group.
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