The recruitment industry must change

Make no doubt about it; recruitment is a huge part of the UK economy. It accounts for revenue of over £25bn and places 500,000 people in permanent jobs every year, never mind overseeing the 1.5 million temporary workers - about 3% of the workforce, and growing. Despite its size, most companies still see recruiters as a necessary evil. This isn’t just our view – we’ve commissioned a great deal of research into the wider perception of our industry and the results were not pretty. There’s simply a lack of trust.
 
There’s a very clear reason why this has happened – the lack of a long-term vision amongst recruiters. Some players haven’t done themselves many favours in the boom years, with the focus very much on the day-to-day job of placing good people in the right roles. With a lack of a unifying, strategic vision, the industry has drifted into the dreaded 'commodity' zone for a lot of business leaders. Few long-term relationships have been fostered and precious little trust has been allowed to flourish. The result? An industry lacking in many true strategic relationships.
 
Unifying any industry with a single direction is a lofty ambition, and one that is arguably unachievable in most if not all industries. I’m realistic enough to admit the recruitment industry is unlikely to wake up tomorrow with a single, cohesive agenda. But we can, and indeed must, work to change the nature of the industry and the way it works. The individual direction that specific consultancies take may differ, but the overall approach needs to evolve if we’re to truly add value for our clients and make that step up from 'commoditised supplier' to 'partner'.

A new approach

So what is this new approach? Its overriding characteristic needs to be a long-term commitment to our clients. That commitment needs to be backed up with the capability to understand our clients’ business and the expertise to deliver what they need to succeed.
 
That means high day-to-day standards that are well-communicated, monitored and managed. The people on the ground need to be very process-driven, delivering excellent service day in and day out. Over time, that kind of service will help raise perceptions of the industry, presenting a much more professional face and helping set the foundations for more two-way relationships.
 
That has to be a minimum standard though. Beyond that, recruiters need to listen to their customers and shape their service delivery model to ensure it provides what they need. There needs to be a realisation that different employers need different things: an approach to recruitment that works for a legal firm may not work for a local authority. If consultancies persist with a 'one size fits all' model, it will simply add further fuel to the 'commodity' label. Speaking with clients, understanding their needs and then tailoring the service to meet those needs will bring recruitment consultancies and their clients much closer together.
 
The know-how, vision and insight that exists within the recruitment industry should also be leveraged. Sharing industry knowledge with clients in a way that is both accessible and relevant will help break the image of consultants who simply sit at desks pestering candidates and employers. The industry is home to a great many respected professionals with a unique view of the business world – sharing that view will be vital in changing the recruitment landscape.

The promised land

Through these changes, recruiters can build an entirely rejuvenated industry. The nuts and bolts will remain – we will still be dedicated to placing good people in the right roles – but the machine around those nuts and bolts will be better.
 
The impetus behind these changes is a real concern over the future of the industry. Without adopting this long-term, relationship-building approach, the industry will continue to suffer from the 'necessary evil' perception and remain at the mercy of the wider economy. In the good times, there will be money to be made, but when the pendulum swings there will be very few companies convinced of the value that recruiters bring. Few will see recruiters as a valuable resource that can be trusted and used to help them through the storm.
 
For our part, this is a mission we’ve been tackling in one way or another for a few years now. Tightening up our internal standards, framing new delivery models and increasing the quality and quantity of our client communications have all been part of the jigsaw. As the recession continues to bite, now is the time for the whole industry to make changes. Without them, recruiters will be forever consigned to the 'boom and bust' approach that has left their professional image amongst the lowest in the business world.
  
Neil Wilson is managing director at leading international recruitment consultancy Badenoch & Clark

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