Human Capital Management Solutions


Your email address

Delivered by FeedBurner


Thursday, 31st July 2014 11:43am - Shortlist: Quality of hire metrics give agency recruiters more leeway in fee negotiations

Using quality of hire metrics can help recruitment companies negotiate higher fees and prove their value to employers, according to the CEO of internal staffing advisory HCMS, Trevor Vas.

Employers often value cost-per-hire metrics over quality-of-hire measures, but recruiters who offer the latter are better positioned to negotiate their fees, Vas told Shortlist.

"Recruitment agencies can share some risk in the hire by offering different fee structures based on the quality-of-hire measurement. While that may not be favourable in the mind of some agencies, it's not a lot different from a guarantee," he said.

"For example, if you measure and provide a 'two star' candidate, you get 10% margin. A 'four star' is 20% and so on. From an impartial measurement perspective is where this becomes problematic, because who wouldn't always provide a five star candidate?" 

Recruitment companies, however, are hamstrung because they do not have access to the performance data that is crucial to create effective quality-of-hire measurements, he said.

"You need [to measure] performance data against the technical skills for the position. If you aren't capturing that then there is a real issue where the external [recruiter] isn't offering the internal organisation anything they can't do themselves," he said.

"If the agency takes a better position description, and is able to headhunt, and go for candidates an internal [recruiter] couldn't hire, then there's a chance of a higher quality of hire. However, without any type of measurement, the argument remains notional."

'Cost per hire' is meaningless'

 Cost per hire is a popular metric among in-house recruitment teams to prove their efficiency; however, Vas argues the metric is 'meaningless' because it exists in a vacuum.

"Getting your cost per hire down to any amount only raises a new question, which is 'why isn't it lower?' It's an aggregate figure that is doesn't mean anything," Vas said.

"The staffing efficiency ratio is far more effective at giving you an idea of your spend on hiring."

The staffing efficiency ratio works on the assumption that people with a higher salary are more valuable to an organisation, and divides the total cost of recruiting by the total compensation package.

"It's a better measure than cost per hire because it adds the dimension of salary, and its key benefit is that it can be used to compare RPOs with internal recruitment teams."

Download news article from

Tuesday, 22nd April 2014 - Employer branding budgets 'wasted' on recruitment experts

Companies' efforts to influence their employer branding are becoming increasingly "futile" as social media platforms make brands more transparent, according to internal recruitment expert Trevor Vas.

Employer branding is now a culmination of the recruitment and employee experience; spending big money to communicate that experience through traditional media has a negligible impact, says Vas, the CEO of internal staffing advisory HCMS.

Employer review sites and social media platforms are the future of a company's employer brand, he adds. "When your employer branding is consistent with your value proposition, then it's a case of transmitting that message through both the recruitment and employment experience," he says.

Download news article

Monday, 26th July 2010 - Social media strategies must align with CVP

Recruiters who fail to tailor their social media initiatives to candidates with the specific skillsets they're targeting simply won't reap the rewards they seek, says recruitment strategy advisor David Als.

"It's Marketing 101," he says. "If you get the right message to the right market, you're going to see the rewards. Get it wrong and you're not successful; it can also negatively affect the brand."

Als, a talent attraction consultant at Human Capital Management Solutions (HCMS), says most recruiters use social media channels reactively. "They don't have the time and they don't have the resources to sit back and say, 'let's think laterally about this; let's strategise'."

That's a problem, he says, because to use social media most effectively recruiters should take a step back and look at, for example, where they are likely to be talent-short in six months' time, rather than "we've got to fill these roles in the next three weeks".

Download news article