Selecting the “Right” Recruiting Firm

When a hiring need arises, you need to make the right candidate match, efficiently and successfully. The cost of a hiring mistake – estimated at three times that of an initial hire – is just too high. So, partnering with a recruiting firm that knows your business and knows your needs, is a wise strategic move.

But, how do you know which firm to choose?

As you narrow the field and make your final selection, it helps to know which questions to ask. Here’s a checklist to get you started:

Do you specialize in my industry?

This is question number one. Because if the answer is “no,” you can stop right there.

  • Make sure the recruiting firm you partner with can fill your specialized needs.
  • Find out how wide a range of skills the firm supplies. If you want to develop a long-term relationship with your recruiting team (and you should), you need to feel confident the firm has the capacity to source many different types of jobs for you.

Additional benefits of working with a specialized firm include:

  • Tenure, experience and contacts within your industry. Compare the relationship with consulting a cardiologist versus a general practitioner when you know you have a heart ailment. The more your firm knows about your line of work and your specific HR needs, the better.
  • A “boutique” candidate pool. Niche firms can immediately dip into their pool of individuals who have been vetted and proven as successful candidates in your business. This is invaluable when you need to hire in a hurry.
  • Depth of knowledge. Specialized firm professionals can read between the lines on resumes and quickly draw the right conclusions based on their strong knowledge of both your industry and the candidates currently available.

How do you evaluate candidates?

Be sure you understand and are comfortable with the candidate screening and evaluation processes utilized by your prospective recruiting firm.

  • Some firms use computer testing, so if this is the case, ask to see a sample.
  • Some firms conduct psychological evaluations and personal interviews.
  • Some firms use a combination of the above.

What is your pricing structure?

Find out the search and pricing model that your potential partner firm uses.  There are two traditional search firm models: retained and contingency.

Retained search firms are paid to work on your executive search. The feed for the search is not contingent on making the placement.

Contingency search firms are only paid when they make an executive placement.

Each firm, whether retained or contingency based, can use a different pricing model.  The most common pricing models are percentage based and flat-fee pricing. 

Percentage based pricing models provide an incentive for the search firm. The firm makes a certain percentage of the candidates salary. The more the candidate is paid, the larger amount of money the firm will make.

Flat fee pricing is used by a small percentage of firms. The firm charges a single rate for any placement.

  • Ask about any discounts offered if you utilize the firm on a regular basis.

Who are your other clients?

Just as you check references on potential new hires, look for testimonials and “thumbs up” words of recommendation from the recruiting firm’s current clientele.

The right partnership with a recruiting firm can make all the difference in your hiring and HR strategies going forward. Still unsure how to build this key business relationship?

If you are looking for hospitality recruitment firms, contact the experts at Horizon Hospitality today.

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