Employers everywhere are complaining of a lack of talent. Companies need talented people to secure a competitive edge, however talented people with relevant qualifications are becoming scarcer. This problem for employers is exacerbated by the fact that the talented candidates of today are mobile and there is a general expectation that commitment to a role will be short-term rather than long-term, so the issue of recruitment is never gone for too long.
Employers have three potential routes open to them when searching for talent:
- Internal recruiting
- Direct recruiting
- Using a recruitment agency
Recruiting Internally:
Filling vacancies for permanent and interim finance roles within a company by exclusively considering internal employees can leverage existing talent from different teams and departments to address skills gaps and promote career growth.
Internal recruitment certainly seems very attractive from the point of view of reduced recruiting costs, and, equally attractive could be its promise of a lack of surprises. For the most part, with an internal candidate, you’ll know what you’re getting and there won’t be as much onboarding to do. After all, the internal candidate will already be familiar with processes, and behavioural expectations and on familiar terms with most of their colleagues. Conversely, this also means that internal candidates are more likely to assume they know things, and thus are likely to miss out on asking the important questions that an external candidate would. So, the status quo remains unchallenged with no refreshing new perspectives brought in by a new broom.
There are pitfalls to be aware of if you are considering recruiting internally. For example, it’s not always the case that a candidate who currently performs well in one role will necessarily perform well in another, and sometimes a candidate’s attitudes and behaviour change when recruited for an internal role.
An internal promotion can also cause quite a headache for the person who has been promoted as they will have left a gap that must then be filled, and you may well need to call upon them to train up whoever is going to fill their shoes, whilst they are simultaneously trying to assimilate their new role. You may even still need to pay advertising & agency fees to fill the newly empty role.
The implications of recruiting internally for other staff are fairly wide-ranging. Whether it’s resentment, jealousy from other staff or the difficulty of respecting a new manager who was once a peer, these natural dynamics can cause significant challenges within a team. However, it can also show your team that you encourage internal promotions and opportunities to develop into other roles, so it’s about finding the right balance.
Rating
Cost: 5/10 (Cheap, but you are operating with a very limited talent pool, so you’re getting what you’re paying for).
Reliability: 5/10 (Moderately safe but unlikely to spark change/growth).
Time: 7/10 (Not time-consuming as vetting and checks will probably already have been done.)
Recruiting Directly:
Recruiting directly involves advertising your permanent or interim finance role, clearly outlining the requirements of the job and giving a concise view of the role. Although it’s recognised as the conventional route, attracting the right candidates in this way can prove to be a real challenge…
When an employer recruits directly they are accessing a talent pool of candidates who are actively seeking work. As such, the candidates may be considering several job offers at the same time as they are looking to leave or they are already out of work. This makes them a less reliable source as they may get a better offer and not turn up to an interview or choose not to stay once recruited.
For candidates with hard-to-find skills, you’ll need to put extra effort in to make them choose your company over your competitors by ensuring that adverts are candidate-focused and describe what you can offer them instead of just what they can do for your company. Your employer brand will also affect your ability to recruit directly, the better it is, the more it will help you to attract and engage better candidates.
Another drawback of hiring directly is that the hiring process might end up going on for too long and result in the best candidates going elsewhere whilst vacant positions cost money and delay operations. The best way to hire the right people is from a smaller pipeline of more qualified talent.
Rating
Cost: 5/10 Less costly than using an agency but the time factor can be costly in itself.
Reliability: 5/10 With direct recruiting you have access to an active talent pool which represents 22% of the market so there is a large number of talented individuals this method overlooks.
Time: 3/10 The biggest downside of direct recruiting is the time factor. You might end up choosing the best person you can find at the time because time is running out—not the best fit for the job.
Using a Recruitment Agency:
Using a recruitment agency means expanding your talent pool by 50% with access to a passive talent pool (ie. Candidates who are not currently searching for employment). These tend to be more reliable candidates who, once they join, are more likely to stay. They aren’t actively looking to move so if they accept the offer of a new job it’s usually because it’s really attractive to them.
Apart from the reliability of candidates, recruitment agencies will find high-quality candidates who bring a diversity of thought, and finance professionals who have different backgrounds and have worked in different industries. These candidates will help to challenge the status quo and encourage change and growth within the organisation.
A good recruitment agency will offer advice on how to improve your employer brand because organisations that invest in employer branding are three times more likely to make a quality hire. Here at Core3 we use technology to amplify your brand with dedicated landing pages, employer brand videos, virtual job descriptions, social campaigns, co-branded advertising and thought leadership events.
Using a recruitment agency also helps employers to hire objectively which is good for business because it helps you hire the best person for the job without stereotypes interfering. This will usher in an inclusive workplace and show other potential candidates that you’re a meritocracy that benefits from diversity.
Cost: 7/10 More costly but, with access to a much wider talent pool, finding the best candidates will give your company the competitive edge which makes the extra investment pay for itself.
Reliability: 8/10 Although we are slightly biased, we know from experience that the best hires come through using a recruitment agency.
Time 10/10 Every recruiter knows that time is money and will be working around the clock to make sure that no time is lost to find the perfect hire.
If you are looking for someone to fill a permanent or interim finance role, why not get in touch with us at Core3? We guarantee a white glove service tailored to your needs and we’ll make sure that no stone is left unturned to find the right finance professional to fit your role.
