There were more new recruitment companies registered globally now than at any other time over the previous fifteen years. Today the number is the highest it has ever been in the industry’s history.
Many businesses in the management consulting sector are reluctant to work with a new recruitment company. While there may be several reasons for this, our experience suggests one of the main reasons is because HR departments and hiring managers are not always aware of the value a good recruiting partner brings. Unfortunately, this can often be due to a poor previous experience and a belief that ‘all recruiters are the same. Yes, there are indeed differences in the service levels that different recruitment companies provide.
The question is, ‘how do you find a high-quality management consulting recruitment partner’?
In this report, we will outline how a good recruitment company adds value to management consulting businesses, and how to find a company that you can partner with, who will provide long-term high performing candidates that will be a fit and match for a particular role and your culture.
Sujit Nair
Managing Director | Delverve Consulting
Market Overview
The number of recruitment companies in the UAE and the Middle East has exploded in the last decade. Recruitment companies usually fall into the following categories: General, locally focused, sector specialists and sector-specific with a geographical focus.
The explosion in the number of agencies presents a contradictory situation for companies who are recruiting. It –
· Demonstrates confidence in the sector.
· Increases choices for clients.
· Over time it improves the overall quality of services available as companies compete for business.
However, it presents a problem for businesses wishing to easily chose the right recruiting partner. Who do you want and how do you decide?
The fast growth has also presented another problem – the best recruitment companies get buried among the vast number of organisations that are operating at a lower level. With a perception that ‘all recruiters are the same, they are ‘tarred with the same brush so to speak.
It’s a recognised industry fact, sadly, that many businesses have a poor perception of the recruitment industry. However, recruitment companies who give a more in-depth service are seeking to change this perception.
Challenges Management Consulting Companies Face When Recruiting
No consulting organisation wants to hear it, but – sometimes the truth is that problems in the recruitment process come from within the client organisation, and not as a result of the recruitment company’s procedures.
Let me explain what I mean. Sometimes a recruitment consultant will be hired to find a candidate for the role of "Senior Engagement Manager", only to dig deeper and realise that the business actually needs two or more candidates in quite different roles (Eg: 1 Principal and 1 Sr Consultant) to those the client had initially thought.
Other variables that businesses have often not agreed upon that can affect the level of service received are:
The exact job description.
The skills the candidate needs to possess.
The characteristics and qualities of the person they are looking for aligns with the company culture.
Who the candidate will report to.
The timeframe they have in which to find a candidate; from the beginning of the search to the proposed start date.
Talking about timeframes, this is often an area that has a significant impact – why, you may be asking?
Timing Issues
At times a company’s recruitment process can take too long. In recruitment, speed is critical – but this is something which many businesses forget as they go about their day-to-day work, and candidates are at risk of being lost – either in interest or to a rival company. Recruitment companies often struggle to get a timely response from clients which means they are unable to respond to candidates who are waiting to hear if their application is to progress or not.
While a recruiting manager may think that a week or two is an appropriate amount of time to wait to give the first round of applicants a reply, in today’s candidate-driven market, this is too long. Candidates will continue to progress applications for other positions rather than risk not being taken forward to the next stage.
A colleague shared a story recently:
A consulting company he was talking to had struggled to fill a position in their business, and after several unsuccessful attempts, they labelled the position as ‘hard to fill’. On closer questioning, the hiring manager revealed they were habitually interviewing at least ten candidates before deciding who to take forward. He was losing candidates because of the time he was taking with his decision-making. Do you have a consulting role that you can’t seem to fill with the right candidate? When was the last time you reviewed your recruiting process? Ask yourself;
What are the gaps?
Where are you losing time?
How can you improve it further in a way that means you start to find the right type of candidates?
Taking these obstacles into consideration, there are four possible outcomes that arise from a management consulting organisation working with a recruitment partner.
The recruitment company provides a poor service because they are given a poor brief.
The recruitment company provides a poor service despite being given a good brief.
The recruitment company provides a good service because they are given a good brief.
The recruitment company provides a good service despite being given a poor brief.
Yes, that’s right. Some recruitment companies will always provide an excellent service, even when they are not given a comprehensive brief to work from.
What Stops some Management Consulting Companies from Working with Recruitment Companies?
There are several factors that contribute to businesses being disinclined to work with external recruiters. These include-
· Misconceptions of recruitment companies (as previously mentioned)
· Viewing a recruitment company as a cost rather than an investment in people
· Poor previous experiences
Value for Money
Businesses often say they choose not to work with a recruitment company because they cannot afford it. Your consulting business will have a budget for recruitment, whether you have outlined one or not. Working with an external recruiter is an investment. The ‘cost’ is about what the impact on the team, department and company can be when a vacancy remains open for an extended period.
When a department and company for that matter isn’t fully staffed, the impact on individuals can result in a decrease in productivity, increase in stress and reduced morale. The result of this over time is that the team ultimately deliver a poorer service to customers.
Many employers don’t consider just how much of an impact a staff vacancy has on the business. What consequences does your company experience when you have unfilled positions for a significant period? Your organisation will not function efficiently if all of the members are loaded with extra duties on top of their own, no matter how well they seem to be coping on the outside.
If you think the budget your company should spend on recruitment is £0, think again. The cost of not budgeting for recruitment itself causes a financial strain on your company. Leaving the calibre of potential employees for your business to chance is a risky move. Management Consulting companies can only succeed/ stay relevant when the right staff are in the right roles.
Previous Experience
You may be a consulting HR manager or recruiting manager who has said ‘never again’ after working with a recruitment company in the past - what made you make this decision? Write down the reasons why and then look for a recruiting partner who ticks these boxes instead of leaving them blank.
If you found-
‘They gave me poor candidates’ - Why were they poor? Did they not meet the job specification you had outlined? Were they given the specification in detail?
’They took too long’ – Did you give them an exact time frame in which to place the candidate?
At the time, did you think they were too expensive? Was a successful candidate placed? How valuable has this been to your business this year? Recently I was listening to a podcast, and a CEO was being interviewed about his tech company’s dramatic growth. The interviewer asked what did the CEO believe was the biggest factor in their recent success? The CEO answered;
“Recruiting our COO. This individual had doubled the size of the workforce and expanded into six new countries.” The CEO had worked with an external recruiting partner to find and appoint the right COO. I realise every new recruit won’t have this impact, but I’m sure you get the point.
What Types of Recruitment Company Can Management Consulting firms Choose From?
Aside from the vast number of recruitment companies a business can choose from, crucially, there are different models.
The four main models are:
Temping: Temp agencies only take on temporary client contracts and can only offer candidates jobs within a limited time frame.
High street: These are larger, well-known agencies with nationwide branches.
Sector specialists: These companies have chosen to specialise in one (or multiple) sectors such as Management Consulting, Fintech, Financial Services etc.
Executive search: These companies usually find the highest-level positions for consulting companies who may need to recruit a Partner/ Managing Director type position in highly confidential circumstances. Their clients know the value of investing in Exec Search services to ensure they get the best candidate for the role.
Location of the Recruitment Company – UAE, Middle East and Worldwide
While recruiting is now very much a global affair, geography can influence the service that a recruitment company provides.
When deciding which recruitment partner you want to work with, how important is their geographic location for you? Are you aware of where a recruitment company operates geographically or are you being drawn and influenced by their website because it states that they are an expert in the Management Consulting sector?
So how does geography affect a recruitment company’s service?
Take candidates, for example; some agencies are happy to proceed and represent candidates that they have never met in person, while others would never dream of doing this. Understanding the importance of the location of the company you choose to work with should be a critical step in your decision-making process. Sadly, this is often overlooked.
How happy is your company to work with a recruitment consultant from London to find you an Arabic speaking "Engagement Manager" candidate with Middle East experience when you are based in Dubai?
Do you want a relationship with your recruitment consultant where you can meet face to face, or are you happy to deal with them virtually? Be clear on what will work best for you, as the hiring manager, and your company.
Levels of Service Different Companies Give
Critically, the most important difference between ‘good’ and ‘less favourable’ recruitment companies is the level of service they give. If a business has reached the point where they have chosen to work with an external recruiter simply because they are the cheapest option, chances are they are not going to be best pleased with the level of service they receive.
Why do I state this so boldly? Let me explain.
There are several factors which vary between recruitment companies.
Fees
The reality is, the more you pay - the better a service you will receive. If you pay less, don’t be surprised when you get a scaled-down service. This is not to say that a recruitment company that offers a service for a one-off lower cost is a ‘bad’ recruitment company per se. In the current market, recruitment companies sometimes feel the need to reduce their fees to get contracts.
However, there is a vital consequence of this that we often find hiring managers do not always appreciate. When a recruitment company is being pressured to reduce fees, it will subconsciously affect the amount of time and effort that will go into the search for the perfect candidates for the client.
If you haven’t outlined the amount you are prepared to invest in recruitment - now is the time. It is common for consulting organisations in the Middle East to begin conversations with consultants without having a clear amount they know their business is willing to invest.
Also, it’s worth talking with your potential recruitment partners to check that the salary you are proposing for the vacancy position is right for the market to give you a more realistic idea about the percentage fee you will be investing.
How Detailed is Their Process?
The process is perhaps one of the most important factors to consider of all. Businesses think that all recruitment consultants follow the same process: this could not be further from the truth.
As recruitment companies are operating in an increasingly competitive market, they are being challenged to raise their standards and the value that their service brings. What this means for you when choosing a recruiting partner is to consider how detailed you need your search to be? How detailed is the service of your current or former recruiting partner? How detailed have you believed these searches to be?
Delvereve Consulting has over fourteen steps in our Management Consulting recruitment process.
Interviews and Candidate Qualification
The interview stage is one of the areas in which great recruitment companies can stand out from the crowd but more importantly, this is the stage that many businesses take for granted.
Many Management Consulting organisations believe that their recruitment company is interviewing each one of their candidates before they submit their CV for consideration, but this is not always the case. The interview process is vital to certain roles within some consulting organisations, but this can differ depending on the role and on the opinion of the consulting businesses’ hiring manager. While many recruitment companies believe that a phone call or a video interview is enough to screen a candidate before being sent for an interview with a client, others don’t.
Do not assume that your consultant's process includes face-to-face interviews; ask them if it does. Be clear about what elements you want as part of the candidate screening process you are investing in.
Advertising the Vacancy
Once a consulting hiring manager has briefed their recruitment consultant about the position they need to fill, they presume the vacancy will then be posted online in the usual places.
However, some recruitment companies do not advertise the job online and instead, rely on the contacts they have in their talent pool. With the exception of executive search, not advertising the job online can be a big mistake; as it limits the scope for undiscovered talent. It does not benefit the client in any way; it merely makes the sifting process easier for the consultant.
While you may have perceived all recruitment companies were the same and offered the same service, I hope you are beginning to see where the differences are and why different fee levels are charged.
What Are the Different Models of Recruiting?
Recruitment companies work with a variety of different models. Some companies stick to one type such as contract, or search, while others will provide a variety of services determined by their client's needs - this is an issue which we will cover later in this section.
Below are the different models offered by recruitment companies.
Contingency Search
A contingency search is offered on a ‘no win – no fee' basis. No fee is transferred to the recruitment company until the candidate starts their new position.
Retained Search
A retained search allows the recruitment company to demand an up-front fee in return for exclusively searching for a candidate for the role – no in-house recruiting or other agencies are involved.
Executive Search
An executive search is usually only used by businesses to fill senior-level roles. Some regard it as the most prestigious type of search and, consequently, it holds the highest fee.
Temp Agencies
Temp agencies deal only with temporary contracts of employment, and their fee is subsidised by the management consulting organisation paying a higher hourly rate overall.
Contract
These agencies deal only with contractor employment, which is on a longer time scale than temp work but not as permanent as a fixed contract.
Guaranteed Service
Some recruitment companies offer a guarantee on the candidates they provide. Recruitment companies offer this to their clients to give them 100% confidence in their candidates. Most reputable recruitment companies will offer a guarantee of some type.
Due to the degree of competition, some recruitment companies have developed their services levels and value-added offering to a point where the standard is similar to an executive search quality service, yet clients pay at contingency rates.
Remember, a management consulting client might believe that they have struck a great deal with a recruitment company after negotiating a lower fee, but they do not take into consideration the effect this has on the overall quality of the search. The result is that not as much time and effort will go into the search for a candidate, and the overall result is a dissatisfied client.
It may sound harsh and think of it this way: a 12% fee will only produce a 12% service.
Choosing Your Recruitment Company
Once you realise that not all recruitment companies are the same, it is time to decide on one which meets your needs. Now that you know what to look for, make sure you are thorough in your screening process.
Ask the consultant how many steps their recruitment company follows throughout their entire process, and give details of each step. If they cannot answer or the answer is ten or less, this company is not likely to add the level of value you may be expecting to your management consulting business.
Any recruitment consultant can tell you that they specialise in your field, and why wouldn’t they if they want your business? What you must ensure is that they can deliver on their promises.
Only a scrutinous process conducted by yourself will be able to give you the confidence you are choosing the right recruitment partner. Ask the consultant about times when they have placed candidates in your field. They should be able to talk confidently about issues close to the management consulting sector. You can garner information from a recruitment company in other ways; before or during your first conversation with them. Check their website, Linkedin for social proof, such as case studies and testimonials; only reliable companies will be able to provide these.
A recruitment company’s online presence can tell you a lot about the way they conduct their business. How long ago did they last post on their website or social media? Are they regularly updating or is it sporadic? If they cannot keep their public profile up to date, how well do you think they will be searching for your new candidate?
Not All Recruitment Companies Are the Same
In the past, you might have believed that all recruitment companies follow the same model, and the only thing that changed was the fee. The reason why this commonly held misconception has persisted in the recruitment sector is purely due to the speed at which the industry has grown.
There are so many recruitment companies to choose from, management consulting organisations rarely have the time to spend vetting different ones, much like they don’t have the time to hire employees for their own business.
Holding the false belief that all recruitment companies are the same may lead you to decide to work with the company with the lowest fee, to reduce costs for your consulting organisation. But any fee at all is too much if you're not receiving the service you expect, or need, for your management consulting organisation to thrive. Choosing to work with a mediocre recruitment agency will provide you with inferior candidates, which ultimately is harmful to your business.
Benefits of Working with the Right Recruiting Partner
Working with the right recruiting partner for your business is beneficial in the following ways:
A consultant working in your field will have in-depth sector-specific market knowledge.
They take care of the lengthy task of evaluating CVs. Sometimes it can be logistically difficult for a smaller HR department to sort a large number of CVs successfully and efficiently, especially while working on multiple roles/positions.
Speeding up the process means you waste less time (and in turn, profit) due to your organisation not being fully staffed.
They have access to more candidates, including passive candidates who would not have seen your job posting because they are not looking for a new job currently.
They guide you through the whole process and are experts at dealing with offers and counter-offers.
Working with the same recruiting partner over time helps them to understand the needs of your business better. This way, they will always be on the lookout for the talent they know will be perfect for your business and will have the right candidates lined up or in mind.
How to Choose the Right Recruitment Partner
There are several factors to consider before choosing your recruiting partner.
What is your budget?
Do the agency values match yours?
Are they a specialist Management Consulting recruitment company, or will a general agency meet your needs?
How many stages does the recruitment company include in their recruiting process?
What does their fee include exactly? Remember – low fees generally do not guarantee a high level of service.
How much, and what kind of social proof can you see on their website, Linkedin page from satisfied clients?
How do the companies you contact work with their candidates? Email only? Phone? Video calls?
Checklist
Here is a checklist of the most crucial points to consider when choosing your potential management consulting recruiting partner.
For each question, answer yes (Y) or no (N) and tally up your score at the end.
Our recruiting partner is a specialist in our sector.
The recruiting company has demonstrated its expertise in our sector through social proof. We have seen case studies, testimonials, plus their social media reflects this.
The company will/can visit our business premises to ensure they fully understand a vacancy, our recruitment goals and the structure and ethos of the team/department the candidate will be joining?
The company /agency will work with me to create a detailed job description?
The company /agency will consult with me to ensure the remuneration package fits with the market, the candidate we aspire to employ and our company budget.
The company /agency will create and agree on a detailed person specification for the role.
All stakeholders involved in the interview process have agreed on the job and person specifications.
The company /agency will advertise the role on a variety of channels we have agreed on.
The advert the company /agency will be optimised for online job searches.
The company /agency will interview candidates face to face or via phone/video before submitting their CVs to me
The company /agency will undertake relevant skills testing and/or personality profiling of candidates and provide me with the results
The company /agency will manage all the logistics of arranging interviews
The recruitment company/agency can provide dates and time scales for the whole interview process.
The company /agency invest time briefing and supporting candidates in the preparation process.
The company /agency can provide candidates and ourselves with articles and reports that support and educate both parties through the recruiting process and beyond
The company /agency will manage the communication with candidates throughout the interview process.
We provide the recruitment consultant/s with relevant feedback for candidates at each stage of the process so that the consultant can fully represent our company and employer brand.
The company /agency will manage the offer process and deal with any salary negotiations
The company /agency will handle any counteroffer situations on our behalf.
The company /agency offer a candidate guarantee if the candidate doesn’t work out
The company /agency will keep in contact with the successful candidate and ourselves during the onboarding process to ensure a successful transition
We stand to gain invaluable market knowledge from this particular recruitment partner that we might not get access to elsewhere
I am very clear on the value that our recruitment partner/s bring to our business.
Your Results
How well did your company score? If you answered more N than Y, now is the time to think about what you are expecting from your recruiting partner, and more importantly, if you are getting the value you want and expect from the fee that you are paying.
Working with the right recruitment partner will add value to your management consulting organisation; choosing the right one is the best step your company can take to ensuring your organisation is only delivered high performers.
Sujit Nair
Managing Director – Delverve Consulting Middle East
About – Delverve Consulting
Delverve Consulting is a specialist Management Consulting recruitment company specialising in Mid/Senior permanent and contract recruitment, Partner/ Executive search recruitment and talent mapping services. Our clientele includes MBB's, Tier 2, Big 4, and other reputed boutique consulting firms in the Middle East region. We also support some industry clients looking for top talent from the management consulting space.
Delverve Consulting has successfully recruited experienced consultants within TMT/CMT, Education, Automotive, Healthcare, Financial Services, and Industrial Manufacturing practices for firms in the Middle East. We are well-positioned in our market and can confidently support management consulting clients with a range of recruitment services, from one-off permanent/ contract recruitment to setting up an entire team/ department or recruiting for a new office location for our clients. We are experienced, honest and professional in our approach, with a successful and tested recruitment process in place.
To find out how we can help you strengthen your consulting team with an expert, seamless management consulting recruitment process – get in touch with me today.
Call me on +971 508 80 9664 or email me at sujit@delverveconsulting.com to find out more about our transformational recruitment service.
Comments