Beyond the beauty pageant

17 March 2010 | By Sue Weekes

Much like that mother of all beauty parades Miss World, the recruitment agency variety, in the guise of the preferred supplier list (PSL) presentation, can sometimes be accused of lacking depth. Resourcing managers often complain of predictable agency sales spiel, but by the same token remarks from the other side of the table suggest that they could do more themselves to extract value from the process.

“My big frustration is that I am rarely challenged on any information I give,” says Lee Knowles, regional director at technical and engineering recruitment specialist NES UK. “Due diligence isn’t always applied to the process.”

Resourcing professionals may argue with this view but cynicism over the effectiveness of the beauty parade certainly isn’t unfounded. Preconceptions, predilection and politics can all play a huge part.

Moreover, there is an inherent flaw in that on so many occasions it is the agency’s sales ability rather than its recruiting skills that are tested. And procurement departments are also potentially queering the pitch, literally. “The procurement team will have emphasis on cost quite rightly. However, they will not necessarily know the reality of working with agencies as a customer or understand the specialism or quality required,” says Virginia Begg, director of ReSearch Selection, who highlights this and poor preparation at the request for information (RFI) stage as areas that can hamper negotiations on the day.

If the process is to prove fruitful for both sides, it must also move with the times. Gone are the days when an agency could pitch up and dazzle a client with a bulging black book of top talent known only to them. The emergence of professional and social networking sites such as LinkedIn and Facebook, as well as job boards, means that this talent is likely to reside on an accessible database eminently findable by anyone.

“Finding people is no longer the issue and no longer the value proposition from agencies,” says Master Burnett, managing director of US-based HR advisory services and training company Dr John Sullivan & Associates. “Employers must find agency partners who are more knowledgable about their business and be able to identify the talent that is relevant to the organisation’s strategic business needs.”

To achieve this, there must be a better understanding of each other. Jonathan Young, staffing and resourcing lead at Lockheed Martin, says he expects agencies that turn up to pitch to have done as much research on the company as a candidate coming in for interview.

On the flipside, James Thompson, recruitment manager of Discovery Networks International, which whittled 38 suppliers down to 14 at the end of last year for itsbottom and middle-tier managers’ PSL, ensured the company was as informed as possible going into the beauty parade. It based its questioning on research that included feedback from line managers who had worked with the agencies. “We made sure that we had pretty good idea beforehand about who had a record of delivering,” says Thompson. “Agencies will want to concentrate hard on the sell but we made sure we got down to the nitty gritty of how they deliver.”

Know what it is you want to know
As well as preparation, being clear about what you want to know as a resourcing professional is paramount. Begg says that in the same way your RFP gives the supplier a clear overview of your requirements, both procurement and resourcing must be specific about their aims.

“Without this steer you’ll end up with something that is all about the agency but doesn’t answer the questions the business needs to make a decision on whether they can supply,” she says.

Begg says it is important for the client’s team to include representatives from the business side - for three reasons. “They are the end users, not HR; they will ask the difficult and direct questions to satisfy themselves that the agency knows their stuff; and they are the ones that will break ranks and go outside the PSL if they don’t like who you’ve chosen,” she says. “So get them involved.”

Lynette Eastman, former HR director for the global finance function at HSBC, and who has held senior HR and resourcing titles at Standard Chartered Bank, Cable and Wireless and BP, says resourcing heads should also involve a business stakeholder or executive on the day, ideally someone who is instrumental in the review process. They may take a tough line with the agencies, which is no bad thing, and involving them in selection can pay off long-term.

“In a previous role, I involved an executive who was anti-outsourcing recruitment but who ended up being the biggest advocate,” she says. “Sometimes the most cynical people can become the biggest supporters after they’ve been involved in the process.”

With the changes that have taken place in recruiting over the past few years, think carefully about the questions you want to ask, especially when it comes to managing and sourcing candidates. Roger Philby, founder and chief executive of talent management and executive search firm The Chemistry Group, says clients should ask agencies how they maintain their knowledge of the talent in the sector and how they source candidates.

“If they just say they use web advertising, Twitter, LinkedIn and Facebook, as a corporate you can do that yourself,” says Philby, who has also worked in-house “But if someone demonstrates they understand the talent and have the right relationships in the marketplace, then that’s something I’d pay for as a client.”

Also, make sure you throw in some questions that will seriously challenge the recruiter. Burnett recommends asking the agency to tell you about a situation where they advised a candidate not to accept an offer from a client. “It might sound like a trick question because it is,” he says. “Some agencies can strongly influence a candidate to accept even if they know they aren’t right. I wouldn’t want to hire someone who wasn’t truly motivated by the job as it leads to early term turnover and it costs me more than keeping the vacancy open.”

As well as asking questions, be alert to how many and what type of questions the agency is asking you. Begg says these should centre around strategy, key issues, job specialisms and how they can be successful, and certainly not “who else are you seeing today”.

Gill Bell, HR director with Handle Recruitment and previously group HR director at Sanctuary Group and HR manager at EMI, agrees and says agencies should also be asking what an employer is currently not getting from its recruitment agency.

Set against a more business-focused backdrop, Bell also says agencies must show they understand your brand. “Rather than just having five agencies sat in front of you telling you how they screen CVs and going through the selection and testing process, I want to know how they would be representing my brand, whether they understand its ethos and values and how they could translate it to the market on our behalf,” she says.

She adds that you should also ask the agency to explain why the proposed account manager has been matched with your business. Make sure in advance that your contact will be present at the pitch and don’t assume they will be.

The continued pressure to drive recruitment costs down and the emergence of online marketplaces and auctions in the recruitment sector will undoubtedly change the way agencies and clients interface and interact with each other.

But with recruitment ultimately being a people business, the beauty parade will remain an important component of agency selection and one that is worth preserving. Metrics and business intelligence are likely to be used more frequently in the selection process and, with the pressure on companies to behave ethically and responsibly, there will be a demand for more transparency and authenticity.

As long as both resourcing departments and recruitment agencies are prepared to adapt their practices and mindsets, there is every chance the beauty parade will be more than skin deep.

Powerpoints :

• Both resourcing teams and recruitment agencies must do their homework on each other and do so thoroughly
• Resourcing heads must have a clear overview of their specific aims and what they expect from the agency
• Include representatives from the business who will be end-users of the agency’s services in the line-up
• Challenge the recruiter with your questioning and note what questions they ask you
• Make sure you will be meeting your contact/account manager on the day
• Ensure the agency understands your business needs and brand