Many of our recruiting industry peers are asking this question and I hear it repetitively, both from new entrants in this field and from companies who have been around for a long time. Seasoned players ask this question because they cannot fathom going through the system to make placements. New entrants just don’t know what to do with this gorilla.
We all know that the recruiting industry has changed so much over the last 10 years. 15 years ago, there were only a few companies who used the MSP model and it was the recruiting company’s choice if they wanted to deal with that market or not. Recruiting companies who were comfortable dealing with direct managers could not perceive that they could have the same number of placements. Have times changed?
The answer in a word is YES.
Today many large companies have opted for the MSP model and are enjoying much success with it. The direct manager model has shrunk so if you want to stay in the game, your only option is to start dealing with MSPs. If you want to grow, the only way is to tap the market of corporations who are using MSPs.
For all my recruiting peers, working with MSPs is a totally different mindset and you will need a different strategy to be successful. You cannot use the same fork to eat different food.
First of all, the biggest difference is the volume. MSP volume is unpredictable. This means that you don’t know when a requirement is coming, so the challenge is how do you form your team? How many recruiters are needed to handle the volume? Another problem is the timing of the requirement. Requirements can come at any time, even later in the afternoon or evening, so turnaround time is the biggest challenge. When you are working among the competition, fast turnaround time is essential. How will you find the right resource on time, or shall I say before the competition?
The answer to all of these challenges is 24×7 operations and onsite/offshore recruiting model.
By doing this you can hire more recruiters, thus have better bandwidth and you can then handle the volume and timing of the requirement. Unlike with hiring managers where you have direct relationships, you cannot wait for the best resume. You will have to make tough choices and make sure that there is a minimum of one submission within 24 hours. Keep doing this over and over again. Perseverance is the key here.
Is this a successful model? Absolutely. You just have to change your mindset and attack this bull from the horns. You will really enjoy when you will have a placement without knowing the manager and at that time you will savor the success of that placement. IT IS WORTH IT!
Good luck to my fellow recruiting companies who want to pursue this model. If you have any doubts or need any clarification, contact me.