Done properly a Managed Service will cost you nothing to implement and can have a profound impact on your business.

RPO’s and big managed service deals are normally out of the reach of mainstream SME companies but they are in demand from clients across the SME sector and right through various industries. There is also a big demand from within the bigger companies for “divisional” managed services where they are struggling to find the right people. There is an apparent fear both from the recruiter and client side in doing these types of deals, in fact 98% of recruitment companies just don’t even try. Having managed service can radically change your business and it really can be very simple, also engaging your existing supply chain to give you piece of mind

RIGHT PEOPLE, RIGHT TIME, RIGHT PLACE – 3’Rs – Like being back at School.

Taking you through the Managed Service

    1. Understand the Recruitment Industry

Main Stream Contingent Recruitment Companies = 90% of the market and these are the companies that will just throw CV’s everywhere and try and make a deal stick for the biggest fee they can get.

Typical Recruitment Companies chase the biggest fees paid by clients and align their candidates to where the biggest fees are (For the Good Ones). If you underpay on fees you underpay on quality.

10% of the industry are RPO / MS Aligned with less than 1% an Industry Expert in a sector- generalist as opposed to specialist RPO / MS. Very few, if not no experts are able to offer a Managed Service so how can they actually represent your company?.

The recruitment process for mainstream recruiters normally constitutes a job board search, an advert and a sweep of their database – that’s it. This type of sourcing typically constitutes the 3U’s – Unemployed, Unsuccessful & Unhappy Candidates. Not exactly what you want or need.

When you are playing with Active / Job Board Candidates, the good ones are artificially expensive, multiple offers etc which ultimately means more time wasted for you and your business. They are typically registered with 4/5 other agencies so even before you interview your chance of a successful hire is around 20/25% whilst having to pay artificially high salaries for under skilled candidates.

Generally mainstream recruitment is bad for businesses across most sectors due to its reactive nature. They will tell you they headhunt and they don’t? They tell you they can take on the world, do anything, find anyone, they are the “YES MEN” but somehow normally disappear onto the next role.


    2. Business Issues facing traditional recruitment methods:

Up to 40% of Management time in organisations is being wasted by interviewing and not hiring.

HR/Talent time dealing with multiple agencies is draining and proving unfruitful but necessary.

Hires are made out of necessity instead of hiring the very best in the market. Reactive instead of Proactive and traditionally lower quality of candidates.

Your view of the market is traditionally less than 20% of the available talent – Non Headhunt Focused.

Recruiters lose interest if they don’t have anyone “here and now” and normally lose interest within 5-7 days.

Time to Hire is massively extended – 6-9 months is becoming more standardized.

Lack of feedback from the market and the recruiters means you don’t really know where or how to proceed.

Lack of ability to take on new projects when current ones aren’t staffed properly.

Penalties on current contracts for lack of the right talent.

Generally mainstream recruitment is bad for businesses across most sectors due to its reactive nature. They tell you they headhunt and they don’t?

    3. Why an RPO/Managed Service/ Project Service Contract

Firstly it all sounds a little scary and it isn’t, just making your hiring process better, quicker, and attracting quality candidates.

A Managed Service combines the best of breed Talent tools – Headhunting, Talent Mapping, Pipelining, Aggregation (Job Boards etc) into one concise package with Zero upfront costs. Also done the right way it will still allow you to work with all the other agencies you feel add value, just in a better way.

Managed Service Benefits

  • No more 50 recruitment calls every day!

  • Create assessment centres / University hiring etc

  • Real Commitment from both sides to put “skin in the game”

  • Not a full scale RPO – More Skills or Departmental aligned therefore doesn’t need huge investment, if any at all.

  • Used right your Managed Service partner will work tirelessly to headhunt passive candidates for you and position you as the Market Leader with the entire market.

  • Exclusivity of those candidates is just for you – better quality hires, quicker hires, exclusive hires, more successful hires. No More Dutch Auctions for Job Board candidates or fighting over ownership of a candidate.

  • Passive candidates can be as much as 30% cheaper on Salaries. Better Qualified, More Successful, More Stable.

  • On Tap Headhunt and Talent Mapping/Pipelining Resource. This is hugely expensive – Can run into £100,000’s for relatively small services but is provided literally on tap. 100% focused on your business.

  • Allows you to Talent Pool candidates for the future – Draw down talent faster.

  • Central Hub that uses “One Terms fit all” and allows the business to engage with just “One” contact who will manage all your other agencies for you. Cost Saving and more importantly less of a drain on time for your management. Clear and defined process.

  • Not having to put all your eggs in one basket – allows you to use existing suppliers.

  • Calculate the real Talent Deficit – Strategy for the future.

  • Ditch the recruitment handbook – Blank sheet of paper to start over

  • Allows you to grow with the recruiter and they become embedded and understand your business. Onsite or Remote they can discuss business issues, concerns, concepts, ideas honestly, openly and transparently

  • Honest Market Feedback from candidates. Transparent all the way through.

  • As they build market intelligence around your industry – smart play is for you to engage with that “talent Pool” with whitepapers, webinars etc. Builds the brand. Becomes your market Ambassador.

  • Invest together in key areas. Constant Innovation – looking for ways to improve candidate experience

  • Key business investments can be future proofed (New wins, New Deployments etc can be looked at in advance)

    4. Key Considerations when choosing the right recruitment partner

IBM vs XYZ Computers. £1m to spend. Fired or Promoted – Chicken & Egg

No Middle Manager would be fired for buying IBM over XYZ, even though IBM is a worse solution with 70% capability for your needs and XYZ is 100% match. IBM may cost £2m and XYZ will cost £500,000. If it is your business then XYZ wins every time but if you work in the business then IBM may be the safer option. It is the same with a Managed Service partner.

Do they have a history in your market? Absolutely Paramount

Do the recruitment company you are talking to have the ability to say NO. Avoid the “Yes Men”

Do you have current business issues that need to be addressed – time to hire, contracts can take 30 days etc etc. Get them on the table so that it is clear from the outset.

Are they telling you what you need? Big Red Flag!!!

Do they really try and focus on understanding your business issues as opposed to just focusing on talent?

Are you prepared to pay a few % more to get better candidates (salary/skills, save huge amount of internal HR & management time, quicker hires.

It is a 2 way street. You have to be prepared to be open, honest, frank and deliver exactly what you need. Flaky hiring!! leads to complete frustration on both sides. Clear, Defined and Focused from both sides.

Set out a clear SLA for both your partner and also for your company. 

Are there huge Egos involved?

How flexible are they in understanding your needs?

Are they prepared to put skin in the game?

Track Record, Case Studies

Clear demonstrable steps that can be scaled up

Are they asking you the difficult questions in order to understand your business better?

Sometimes it is scary to think all your eggs are in one basket, they aren’t – centralised, managed and improved.

Take it one Department at a time. Allow the Service to work across a key area then sit down and discuss growing after 6mths, 12mths etc etc depending on track record.

Is it time for a quick Chat?



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