The eight basic approaches to sourcing candidates are identified and the pros and cons of each are discussed. You should decide on a sourcing strategy based on the particulars of the position being filled. The eight approaches are:
- Internal job posting
- Employee referral
- The internet
- Newspaper advertising
- Retained search
- Contingency search
- Employment agencies
- Contract employment agencies
Internal Job Posting
TwoGreySuits believes that companies should promote employees whenever possible as opposed to recruiting externally. Employees will focus more on developing their skills and abilities if they feel the company will give them opportunities to assume greater responsibility. Also, companies with “promotion from within” philosophies find that they are able to attract a better caliber of employee when they recruit from the market place. Refer to the Internal Postings policy in the HR Power Centre’s Human Resource Policy Manual to give you direction on establishing a “promote from within” approach in your organization.
Employee Referral
Employee referrals can be a very cost effective approach to sourcing and hiring good people. Employees have a good understanding of what the company’s looking for and what types of people would function best within the company’s culture. Employee referral programs work best when there is a financial incentive involved. Refer to the Employee Referral Bonus Plan policy and set up your own Employee Referral Program.
The Internet
Using job boards such as Workopolis, Monster or Indeed can be a cost effective and efficient way to generate large numbers of qualified applicants for regular managerial and professional positions. Resumes submitted can be scanned quickly on line and those of interest can be forwarded electronically to the hiring manager for review. Automatic email responses can be set up thanking candidates for their interest and advising that they will be contacted only if an interview is appropriate. This dramatically reduces the administrative work normally involved at this stage. The job posting must be well written to ensure optimum results. LinkedIn is very popular for recruiting management level jobs, various level of ‘recruitment’ packages are available with many different options.
Newspaper Advertising
This is likely the most labour intensive form of candidate sourcing and can also be expensive depending on the newspaper selected, size of ad, running time etc. Advertisements must be carefully worded to attract as many qualified candidates as possible. You can expect a high volume of responses to a well worded and placed ad and it is therefore important to have the manpower as well as a well structured applicant screening process in place before proceeding.
Retained Search
Organizations hire these “Executive Search” firms to work exclusively on filling a vacancy. They are expensive and focus on the more senior level management positions. These firms can be described as follows:
- Generalists
- Established, large
- Prestigious
- Preferred salary range $60K and up
- Charge 30%-35% fee to hiring employer
- Research department available
- Selective about candidates
- Confidentiality generally assumed
- Present 3-5 candidates for each position
- Perform screening function, if desired
- Conduct assessments, if desired
- Perform background checks, if desired
- Thorough
TGS Staffing Solutions is fully equipped to handle searches of this magnitude and at a cost generally below traditional Executive Search firm rates.
Contingency Search: These firms get paid only if you hire a candidate they have put forward. As a result, contingency firms need to be “managed” or they will inundate you with applicants. They will tend to expend considerable effort on your behalf in the early stages of your search but can be expected to lessen their activities on your behalf the longer the position remains open. Some of their characteristics are:
- Tend to be “specialists” for the mid-management level
- Probably not exclusive, meaning you do not have to agree to only give them the work
- Preferred salary range $30K to $60K
- Charge 15%-30% to hiring organization
- Aggressive marketers
- Confidentiality could be at risk
- Send numerous candidates for every opening (often not qualified)
- Usually member of affiliated group
- Potential conflict between firm or firms and clients
TGS Staffing Solutions offers contingency search that is different. Be sure to check us out first if you require recruiting assistance.
Employment Agencies: These are contingency firms for clerical employees. Their Characteristics are:
- Fee ranges 10% – 20% of annual salary
- Generally handle clerical or entry-level management positions
- Preferred salary range $50K max
- High volume
Contract Employment Agencies
During the past 10 to 15 years, there has been a dramatic increase in firms that provide “contract employees” to companies who do not want to add to their full-time staff. Thousands of workers across the country today are, in essence, leased by the contract firm to a company. This could be a viable option for you depending on the nature of your vacancy.
