In light of the AI megatrend in recruiting, the need for recruitment consulting services seems to have become almost obsolete. At first glance, technological innovations make candidate sourcing, selection and matching between candidates and job profiles easier. In addition, algorithms and automation support successful personnel marketing measures.
However, this is only the first glance at the current situation in the HR consulting universe, which is sometimes deceptive. Even if sensibly deployed AI, algorithms and automation efficiently support HR departments, professional HR consulting brings decisive competitive advantages for companies.
Centralization and internalization of HR
In the HR consulting sector, we are seeing a trend towards companies increasingly centralizing and internalizing HR activities. The reasons for this are likely to be greater efficiency and potential savings. Companies are increasingly investing in employer branding measures and internal HR departments are being expanded – in the hope that the right employees will be better found directly by the company.
These approaches are highly understandable in terms of corporate strategy. Regardless of this, professional external support from an HR consultant offers advantages that cannot be generated internally.
So why should companies still use HR consulting services in times of the Gen Z debate and the real or imminent generation change?
Advantages of personnel consulting, headhunting and executive search firms, keyword: candidate market. Even if the economic crisis seems to have turned the market into an employer market in the short term, this is unlikely to remain the case. The shortage of labor and skilled workers, the challenge of the new generations including the expectations of new professionals, and the high willingness of latently seeking candidates to change jobs are phenomena that will continue to influence the current and future labor market. New recruitment approaches are needed to proactively counteract staff shortages or misplacements.
What are the benefits of working with recruitment consultancies for clients, HR managers and candidates?
1 | Greater authenticity and honesty
Candidates talk to a trustworthy recruitment consultant more openly, honestly and at eye level. Social desirability, a phenomenon known from psychology, is supposedly less likely to occur in an interview with an independent third party, as opposed to a specific company representative. Recruitment consultants are often “coaches” for candidates, who listen well and also provide tips for further career steps. Interviews are often more authentic, provided there is a basis of trust between the recruitment consultant and the candidate.
2 | Accompanying career paths
Recruitment consultants accompany careers for years. If a recruitment consultancy does not represent the self-image of a so-called “meat trader”, it also acts as a candidate consultant and sparring partner for individual careers. This has the great advantage over companies that the contact with candidates has been trusting and personal for years. Sometimes several career steps are successfully planned and implemented together. Unlike companies (with the exception of isolated alumni measures or similar), individual recruitment consultants accompany candidates for years and maintain trusting, personal relationships even beyond a specific recruitment consulting mandate.
3 | Active Sourcing – needs resources and experience
Professional active sourcing, but also the direct approach of highly qualified candidates, often requires a great deal of time, experience, analytical approach and skill. Often, active sourcing activities can hardly be managed by internal HR departments, and if so, are limited to selective searches. Anyone who has ever embarked on an active candidate search knows how time-consuming and laborious the process is. In addition, a professional search approach requires continuous improvement and adaptation – which in turn takes time. Time that seems to be better invested in other areas of HR management.
4 | Eisenhower principle (A to D tasks)
HR managers wear many hats – they are often responsible for more than just HR strategy and personnel development, employer branding and recruitment as well as employment law. Recruiting only covers one, but essential, part of this. Every manager carries out dozens of tasks every day, and the order of importance and urgency determines whether the right thing is done or not. This includes weighing up which tasks are important and can be done by yourself, and which can be delegated – and what ultimately ends up in the garbage can because it has (become) unimportant.
5 | Cost of unfilled vacancies (COV)
When companies are confronted with vacancies that are difficult to fill, they sometimes remain unfilled for months. Recruiting processes sometimes take a very long time. Hesitation and procrastination cost money. Just like unfilled positions. The “cost of vacancy” (COV) can amount to five-figure sums, depending on the industry. The budget for a professional search and selection by trustworthy personnel consultants should be wisely set against the costs of unfilled positions. Filling specialist positions yourself often costs the company a lot of money and time. In the worst-case scenario, the position remains vacant until the right candidate falls from the sky or is filled internally by a lucky coincidence. In this case, it may be worth hiring a selected external headhunter with the right industry focus and candidate network.
6 | Advantage – the view from the outside: contrary to the common operational blindness
The job description of the HR consultant requires that the personalities are not only professionals in the field of personnel selection and in the assessment of a candidate’s personality and strengths, but also have a great deal of life, world and professional experience. The clear advantage of external HR consulting is that it counteracts the phenomenon of operational blindness. No two mandates are 100% alike, as every company brings with it new framework conditions, a different organization, corporate culture, priorities and challenges. Making use of this experience for your own organization is worthwhile in many cases and minimizes blind spots in your own company’s perception.
About usPersonnel Consulting, Executive Search
- The right minds for your company: we pave the way for outstanding talent and value-adding employees
- Expertise, networks, efficiency
USP: HR_4.0 stands for
- Results-oriented social media recruiting,
- Precise active sourcing and
- Professional direct approach.
