Weekly Update: Economic Concerns, Outsourcing, and Unethical Competitors

Hiring a Virtual Recruiter/Sourcer
Tom Culligan is considering hiring a virtual recruiter/sourcer but wants some advice on compensation structure for this position. Over the past few weeks, several ERE members agreed that Tom should consider hiring a 1099 and pay on an hourly basis. Hiring a subcontractor would reduce the amount of paperwork and as Donna Hiemer stated, “is a win-win” for both parties.

Problem solved? Not exactly … the conversation turned political and heated up this past week when Amanda Blazo and others recommended using an RPO firm operating in either the Philippines or India. Charles Hillman was left asking, “Why utilize an India based RPO when there are a ton of quality researchers right here in the USA that can do the job.” Jeff Altman responds with a call for patriotism…why aren’t we creating more jobs in the United States? Hope Blaythorne argued that we are in a global economy, and encouraged cooperation with overseas markets. While Josh Letourneau supported Jeff and noted that many of the responses in favor of outsourcing come from outsourcing vendors. According to Josh, “Arguing about whether offshoring is good or bad isn’t going to solve the problem — it’s overall job LOSS that is the issue (which comes in many forms), and I hope we can figure out a solution.”

Where do you stand on this issue? We would love to hear from you…

Unethical Competitors
Who knew recruiting could get so ugly?

Laura Nyp has a competitor who sends her great candidates who “ditch their interviews at the last minute without any warning.” Jill Gilliland, Paul Lipman, and Joseph Ray offer some simple advice that many others echo … stop working with them! Joseph Ray and Pam Claughton recommend doing your homework on both the client and the candidate. The reputation of a client can turn off a candidate before the interview process. Tracy McKenn and Jim Cargill want to know more … Is Laura sure the competitor is sending these candidates? What would be the motivation? How long have they been working together. We would love to hear an update, Laura!

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Employer-paid Benefits
Tami Heyden wants to know what potential candidates would look for in a benefits package. What are the pros and cons of employee vs. employer-paid benefits? Peter Raloff’s company offers 80% of employer-paid benefits plus three weeks of vacation time … not too shabby for the D.C. area. However, Scott Robinson and Pam Claughton feel that companies can do better. Scott had a candidate who accepted a job where the employer paid 100%, in addition to country club membership, company cars, and flex time. Hmmm….are they hiring? Pam feels that 100% coverage is a “huge selling point.”

I Am Sensing a Freaking Out
Maureen Sharib is … from people in the industry. Times are tough and Maureen is noticing dramatic cuts in departments. I have been talking to companies that are “going back to basics” and cutting anything that doesn’t fall under recruiting basics (i.e, campus recruiting). Jim Constantine and Karla Baierl warn us of the negative impact of the media. “Keep your head down, deliver great value, and ride it out!” is Jim’s advice to staying afloat. Amanda Blazo would agree with Jim and shares a positive story in the construction industry. Maureen concludes by reminding us that “those recruiters that don’t embrace the fact that we’re in a sales business are gonna have a hard time.”

Monday’s Question of the Day
The discussion last week about keeping recruiting costs down is still hot this week … what’s your strategy?

Madeline Laurano is the Research Director, Talent Acquisition Solutions, within Aberdeen's Human Capital Management research practice, and is responsible for leading and collaborating on Aberdeen's research coverage across a range of HCM topics, including talent mobility, workforce planning, sourcing strategy, recruitment process outsourcing (RPO), employer branding, onboarding and talent acquisition. Additionally she is responsible for delivering research findings via published works, speaking engagements, on-line events, and Aberdeen's annual Human Capital Management Summit. Before joining the Aberdeen Group, Madeline was a talent systems analyst for the Newman Group, driving the company's success in the area of Talent Management Technology Evaluation and Selection. Madeline joined The Newman Group from Bersin & Associates, where she served as Principal Analyst of Talent Acquisition. Prior to joining Bersin, Madeline served as the Research Director for ERE Media where she created the ERE webinar series, published the Talent Acquisition Industry Analysis and Buyers Guide, lead the community discussion groups, and conducted various research products and services.

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