I hear so many differing opinions of how recruitment will look in the future, and most of the time it depends on whether you are speaking to an agency or a business which is trying to avoid the cost of using that agency for their hiring.
The current state of recruitment is as follows.
Agencies: who charge a margin for each piece of work in filling roles. Big databases and good processes.
Internal Recruitment Teams: who try and fill roles without agencies, but are often spread very thinly.
Speak to most agencies and they will tell you how important they are, and how without them you can’t find the right candidate. Speak to most internal recruitment teams and they will tell you how agencies are a rip-off and don’t do anything like the work they should to warrant the margins being charged.
I understand both points of view.
When we set up Orleans House Finance Recruitment in 2013 we were already thinking about what recruitment would look like in 10, 15, or 20 years.
In our opinion, Internal Teams will get better. They will find ways to hold databases. LinkedIn might be the way they do that.
So where does that leave Agencies?
There are certainly agencies out there now who simply use technology to match words from a job spec to a CV, and who don’t bother meeting the candidates. These agencies, in my opinion, will fail, as companies will be able to do this themselves. It's not difficult.
Where businesses will really need ongoing support is in working out the cultural and personality fit of individuals to their business. This can only be done by assessing the people in person. Businesses won’t have time to do this if they are hiring multiple jobs.
This is where recruitment Agencies will come in.
In the 1970s, recruitment agents were often called HeadHunters, making them sound cool and mysterious. What they did was spend time with people, face to face. There was no email, there was no technology to allow them to do anything else. Then when they placed people, a margin of 20% + was seen as good value.
In 2018, businesses often feel that they are not getting value, as they are having to do all of the cultural fit assessment themselves. The agent simply hasn't done enough work here.
In 2028, I believe we will return to 1970’s recruitment, underpinned by technology – not led by it. There will be fewer recruiters in the market, but they will be great at both assessing people and understanding business culture. Putting the two together properly is what will continue to stand out. Recruiters who hide behind their computers will fall out of the industry.
We've built Orleans House like a 1970’s recruitment business, with meeting people at the forefront of everything we do.
We think it’s the right way to do it.
We shall see.