Great news is unfolding or so it seems. It appears that job growth is not only on the upswing but also showing sustained growth. For the first time in years the unemployment rate is under 8.5 percent (although it’s easy to quibble with what the ‘rate’ really measures). All this is good news for the recruiting/talent industry, which, according to Josh Bersin, is a $124 billion USD market….Did I just say that?!
If things are looking up, then, why are so many Leaders, CEOs putting the brakes on recruiting expenditures and hiring?
For starters, 2011 was the year social recruiting took off. Arguably it’s more cost-effective to use social channels than it is to bring in an outsourced or contingent recruiting firm. Add talent management and talent community software, and you’ve brought a new level of automation to recruiting, using social channels, at a much lower price point than would be possible using a big-name firm (or even a few hyper connected talent management pros – we still exist too).
Secondly, CEOs worry about a lot of stuff, and recruiting talent is not always in the top five unfortunately. CEOs worry about the Board of Directors, hitting financial targets, maintaining leadership in their industries, staying ahead of competitors and maintaining positive brand awareness. While having the right people on board affects all of these, it’s not, by itself, a CEO’s job 1. So tell the CEO you need to spend X dollars on recruiting and he or she is going to ask why. And you better have a compelling, fact-based story.
Third, social media’s impact on recruiting talent has changed everything for all of us. I mean EVERYTHING. We’re talking more than LinkedIn, which by itself was a game-changer. Back to talent communities, talent management software and other uses of social media in the workplace – recruiters have to be ahead of the trends and adjust their business models accordingly. Those who don’t will fail. Maybe not tomorrow, but definitely in the short-term future. Leaders need to adjust models for hiring talent as well. This cuts both ways.
So while the economy may be adding around 200,000 jobs a month, fewer of those will be sourced via traditional recruiting. New recruiting models are emerging every month. So this week on TalentCulture’s World of Work –AKA #TChat– we’re going to have a difficult discussion for Leaders, HR and recruiting rock stars about 2012 Recruiting Trends. We rotate topics every week that are timely to bring you the latest and greatest information.
Yes, so much unfolds, but who is getting in on this giant market? How can leaders decide what to do next?
So let’s come together to explore what to do with the $124 billion dollar industry. Because you can’t buy every single recruiting model at once. Or can you? Join us Wednesday night on #TChat The World of Work February 8th from 7-8 pm ET (6-7 CT, 4-5 pm PT), where recruiting and leadership “buy in” topics are in the hot seat. Join me, Kevin Grossman, Maren Hogan, Sean Charles and Kyle Lagunas for a very special #TChat.
Here are this week’s #TChat questions:
Q1: According to Bersin, the US “recruiting” market is $124 billion, but CEOs are putting the squeeze on costs? Why?
Q2: What kinds of recruiting practices will lead the charge in 2012 and why?
Q3: Does recruitment process outsourcing (RPO) damage or enhance a company’s recruiting practice? Why or why not?
Q4: Is the contract recruiting model old school and costly? Why or why not?
Q5: What other recruiting models, both corporate or contract, are emerging and why?