As HR attempts to justify its place at the top table in boardrooms across the country, recruiters are faced with finding commercially aware, strategic HR professionals, as well as tightening margins in a candidate-heavy market.

“We want candidates that can stand in front of a finance director, business managers and sales managers and present HR in the right way, showing how HR can add value to business performance in the current economic climate,” says Alan MacKinnon, recruitment delivery manager at Transport for London.

Successful agencies will recognise the difference between transactional process-driven roles and strategic roles necessary for driving business, MacKinnon says: “A couple of the organisations I work with came up with a list of 10-12 questions on an experience line and a competency line, and they got the candidates to answer all these questions. So I had a CV based on their background and experience, and a
capability status.”

Anthony Pierce, associate director at specialist recruiter Hudson’s HR division, told Recruiter that recruiters need to be aware of their client’s commercial requirements. “The demand is for commercially aware HR individuals; people who understand profit and loss and value to business.
“By being aware of our clients’ cultural and commercial requirements, we’re helping to find individuals that can add value to the culture and the commercial value of the company.”

In the recession, organisational development, employee relations and change management professionals are in high demand due to company restructuring, according to Pierce.

At Adidas, however, benefits people are in short supply, says Jennifer Cunningham, group recruitment manager at the sports lifestyle brand.
“Compensation and benefits seem to be a missing link currently, with most organisations having either a payroll and/or a benefits department. Finding quality candidates who have the ability to manage both areas is very difficult.”

It is not necessarily price that is a key consideration for MacKinnon, who told Recruiter that agencies should focus on demonstrating value rather than coming in at the cheapest rate.

The demand is for commercially aware HR individuals; people who understand profit and loss and value to business

“Most agencies with a mature, sensible approach are recognising that compromise on both sides is required. There will be some that suggest a degree of desperation by dropping fees and offering special deals, which I don’t think clients like.”

And in this market John Maxted, chief executive at HR recruiter Digby Morgan, has been able to maintain margins. “The rules of supply and demand will apply to everything. We are maintaining our margins quite robustly. There are some businesses that say some firms are doing it for 10%. We say go and have a 10% job done and in many cases they are coming back to us.”

Recruiters are also showing value by sifting the best talent in a candidate-rich market, says Raj Tulsiani, managing director at Green Park: “There is a higher number of people available so separating the wheat from the chaff and being able to match the skills and culture is more difficult.”

And recruiters that can demonstrate added value could benefit from a bounce back sooner rather than later. Hudson’s Pierce says: “I am hopeful of steady growth, steady increase in job flow. Then I see the market becoming candidate short.”

Louise Cartwright, head of resourcing, Royal Mail Group
“We require commercially focused HR professionals who can truly understand the business, its needs and translate this into pragmatic HR practices. Measuring the effectiveness of HR and its impact on business performance are key for a successful HR professional.”

Vanessa Robinson, head of HR practice development, CIPD
“I think a combination of factors are probably at play. CIPD recognises that the qualifications need to remain relevant and has recently introduced new professional standards which reflect the need for more business/commercial awareness as well as the increased number of specialists that exist within the HR field.”

Jennifer Cunningham, group recruitment manager, Adidas
“As the market toughens and active candidates become more savvy, recruitment agencies need to understand the need for strong applicant relationships to control the process. Many candidates are now approaching us directly if they feel they have received a disservice from an agency appointed to work on our behalf or if they feel they are a strong applicant regardless of what the agency says.”