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Friday, May 16, 2008

Sourcing - where its at

So, after a lot of thinking, we've gone into the sourcing business. It seems like the right time to offer this service to the recruiting world. Sourcing involves the research and screening calls to potential candidates. More to the point, we dig up names of potential candidates, then call to see if they'd be interested in applying for the job. The research is pretty straightforward, but there are lots and lots of calls. This is different from what the common recruiter does. We don't run ads. Not on job boards, and not on our website. We actively source people. We go out and find them.

This is the kind of never-ending, repetitive work that burns out recruiters. So they find ways to avoid it. It seems that when a recruiter can't fill a requisition, they either call a headhunter, a temp agency, or a contractor. This means the first reaction after failing to hire is the most expensive one.

If a headhunter charges 25-30% of first year salary, then a mid level professional hire at $75K costs between $18-22K. We think there's a big opportunity to outsource the sourcing effort to us, sparing the recruiter the worst part of his job. We send the candidates to them and they take it from there. The cost? Around $6K for most positions. That's a significant savings. And it enables the corporate recruiter to add more complex values in the hiring process (like preserving the company culture) while keeping their job...

Seems to me this should be the recruiter's first call for help.

Comments:
I hardly think that sourcing is the hardest part of the job for a well-established headhunter. Maybe in year 1 or 2 it's tough but after that, you have a strong enough network where the hard part is making placements, negotiating to get the candidate and hiring manager on the same page when it comes to compensation, etc.
 
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