Reconnaissance of the enemy; targeting the prey; a grenade is pitched; interest is captured; probing and interrogation of possible defectors; sortie into enemy trenches; ultimately, a deserter from your camp.
Reconnaissance of the enemy; targeting the prey; a grenade is pitched; interest is captured; probing and interrogation of possible defectors; sortie into enemy trenches; ultimately, a deserter from your camp. With all of these clandestine operations going on around you, some might say that recruitment in financial services is as competitive as a battlefield.
Am I exaggerating? Perhaps, but the analogy is valid when discussing the current recruitment climate. And when the recruitment market is tight, as it currently is, the prospective employer should be alert to the tactics of their competi-tors, as you all seek to secure the best recruits from limited reserves.
One tactic, more prevalent in these challenging times, is the direct approach. We often hear comments from employers such as: “this is a cost-effective re-cruitment method” or “We know the marketplace and all of its participants, so why not just tap them on the shoulder?”
And while the reader may be thinking: “trust a recruitment consultancy to chal-lenge this approach, they’re just after a fee!”, there are some nasty little landmines, which we should draw to your attention before you proceed down this path.
Surveillance
When recruiting via the direct approach, you run a high risk of not accessing the best the market has to offer. Instead, you rely on your network of contacts and sources and therefore, new comers or maturing candidates may be overlooked because they have yet to develop the pre-requisite “industry profile”. It is an unfortunate, but likely possibility, that you approach the best candidate you know, but not necessarily the very best candidate for your requirements.
Stealth
Okay, so I stand corrected. You are aware of everyone in the market and you are about to make contact with your preferred candidate – well done. Before you pick up the telephone, you do realise that you will be exposing your company’s iden-tity and intentions from this one innocent call? The marketplace will quickly learn of your activities, and your competitors, of which there are numerous, will use the information to counter your attempts to recruit their resources, or to gain a competitive advantage from the exercise.
And what of the discretion required from your own team during the numerous closed-door discussions in your office. Gossip and intrigue are two human char-acteristics which, while we would prefer that they don’t factor in our team, feature strongly in all work environments. So, while you are innocently soldier-ing on with your project, your team may be speculating on the state of play and in fact, whether they concur with your selection. Goodness knows who they may have mentioned these activities to during the course of normal business. You may have thought that your activities were undetected, but the market’s rumour mill is now in full swing.
Negotiations
Things are progressing really well, and you have captured the candidate’s inter-est. Remuneration negotiations are next on the agenda and you may discover that your discussions do not flow as well as expected. Now that your preferred candi-date is conscious of their worth to your organisation, the prima donna syndrome may rear its ugly head. Where previously you may have enjoyed the assistance of an intermediary to negotiate on your behalf, you are now on your own and your ability to manoeuvre without offending could be restricted.
As it is another human trait to elevate one’s salary at every opportunity, your candidate will probably take advantage of your relationship with them to secure an inflated package. This upward pressure on remuneration will have a detrimen-tal effect on the camaraderie of your team, and certainly, the marketplace as a whole.
Each time we are briefed for a new project, the subject of inflated remuneration packages is raised. Clients may think that the consultants are solely responsi-ble for fuelling candidate expectations (because some of our colleagues have fostered an industry reputation for “nest feathering”), when in reality it is a more complex issue. A candidate’s understanding of the marketplace and their own sense of worth, allowed to run unchecked, is more often the primary cause of this frustrating dilemma.
Neutrality
Having successfully negotiated an acceptable package (my, my, you are doing ex-tremely well), who will you contact to obtain independent references of the can-didate’s credentials? The competitor organisation from where the individual is departing may be annoyed with you and may retaliate, even to the point of a counter offer which could lead to an unpleasant “tug of war”.
Additionally, should you take on this activity personally, how can you phrase your questioning to gain the confirmation you require, without exposing the strategy behind the appointment? For example, what strengths are you seeking, and what experience do you require and why. This gives any competitor insight into the exact assignment for which the individual was recruited.
Also, if additional references are required, don’t assume for a moment that other groups will ignore an opportunity to recruit a talented and available re-source. They can also pick up the telephone and make a “direct approach” right underneath your nose. Did you really want to give the game away so late in the day? If not, perhaps you could have considered retaining a neutral consultancy to undertake this activity on your behalf and thereby maintaining complete con-fidentiality, until the candidate is well out from behind enemy lines.
One shot
And what if the individual declines your invitation to chat over coffee? You have a strong industry relationship which you both wish to retain. But did they decline because they do not wish to join your team? Maybe the timing was just out of sync or perhaps they don’t like you? With a direct approach, you will probably never know.
Also, what if things are progressing well but then the remuneration negotiations falter? Are you equipped to overcome such a hurdle, while maintaining the exist-ing relationship?
If not, you may be left feeling that the individual is unrealistic, or in fact, they may think you are unreasonable? So how does your business relationship look now? Perhaps there may have been another tactic which could have been employed to manage the ego factor along the way.
Fall back positions
It is true that we have taken a light-hearted look at the pit falls of the di-rect approach. As this approach requires planning and should be undertaken with caution, what other strategies are actually available to you?
Some may choose to advertise (an increasingly expensive and unsatisfactory re-cruitment method), while others may employ the services of a recruitment or search consultancy (also an expensive and sometimes unsuitable strategy). There is no blanket solution and each strategy must be devised to suit the situation at hand.
However, there is a common misnomer (aided by some of our colleagues) that con-sultants must control the entire recruitment process. By now you must think we are probably a little too controlling. But seriously, if you have decided that you want to manage your recruitment in-house, whether you chose to advertise un-der your own banner, approach an external candidate directly or are considering internal options, consultancies can add considerable value at one or more stages of your project.
In this current market, where confidentiality and assignment tactics are criti-cal components of a successful appointment, some targeted advice and assistance from your preferred consultancy may not go astray.
Debra McQuinn is a principal of financial services recruitment specialists, Strategic Resources Network.
