Increasingly more companies demand highly skilled employees from around the world. Especially in IT, the concept of distance and time does not matter, being replaced by culture fit and the right skill set. This shift has empowered many companies to hire remote talents regardless of their current location, providing new opportunities for global talents, and contributing to the growth of many emerging economies.
Given the demand from the industry, the recruitment process has undergone significant performance enhancement due to various HR technologies that aim for automation and predictive analytics. The job of a recruiter evolves with technology, making it dynamic and increasingly demanded due to its efficiency and scalability.
To remain competitive in 2022, the recruiter-company relationship should adhere to 3 key recruitment trends:
AI for recruitment has specifically focused on automating the candidate screening process, helping recruiting teams reach out to relevant active, as well as passive, candidates. Additionally, application tracking systems (ATS) have contributed to an enhanced monitoring capability of the recruitment process at scale.
However, despite optimizing the communication process with candidates, the recruiter’s company outreach process remains an issue. There are increasingly more companies complaining about the timing and the recruitment relevance that is transitioning to the regular sales process.
What if we switch the dynamic from having recruiters reach out to companies to allowing companies contact the best recruiters for them?
beHOP targets the future of recruitment and aims to optimize the flow from its core origins, providing companies with a network of validated recruiting agencies that match their company culture, talent needs, and urgency.
Secure recruiting job payment demands solutions that would help recruiters switch from success fee payments driven by hires to the actual candidates that pass through the interview process. Increasingly many recruiters aim to switch the pricing model from contingency (pay for results) to flat (pay for time) or retainer model (pay for milestones).
Nowadays, the contingency model is preferred by companies, as it minimizes their risks, while successful recruiters have the chance to gain higher rewards. Typical recruitment fees range from 15-25% of an employees’ first year salary. However, for hard to fill or senior positions, the recruitment fee might reach even 50% of the first year salary. Companies might end up paying tens of thousands of USD to recruitment agencies, but, in most of the cases, the time savings alone can make up for that cost over a couple months.
Despite its advantages, such a model results in low to medium commitment level from recruiters, who are serving multiple clients at the same time and prefer projects where they can get results faster and with less effort.
Thus, the recruitment trends are switching to more per time or milestone payments, where companies demand a more personalized and specific approach to the candidate sourcing process. This model correlates with a relatively high commitment from the recruiter side, and is specifically relevant when help is needed with a very specific task and the company either is missing the recruitment processes set up or the role does not align with a clear contingency fee.
Relatively recently, the recruiter community has started to look more into the retainer model, where the recruiter fee is released in stages, being correlated with the recruiter performance. In this context, the recruiter focuses on the quality of the delivered candidates, being highly committed to closing the hire as soon as possible to get the full reward. In this context, tools that would ensure the safe recruiter payment based on the progress are of high interest, potentially becoming the go-to-process employed by each recruiter when signing contracts with companies.
Data-driven recruitment suggests that more companies care about time and quality to define a successful candidate outreach. Based on the tips for a lasting recruiter-client relationship, among having a streamlined outreach and candidate tracking process, it is of essence to build feedback loops where performance is measured clearly and consistently improved for:
Hiring managers share an increased desire to be integrated more in the recruiting process, hence, having a higher visibility and control over the process.