KISSING-THE-FROG SYNDROME
CHAPTER 3: THE RECRUITMENT PROCESS

By Mr. Alfred Shum
Chairman & CEO,Onpress International

This chapter deals with the situation in which the recruitment process will take place, and helps the reader on how to come to a recruitment decision, and to examine the options for this process.

Firstly, one has to decide that an appointee for a position, or a vacancy, will take place.  Well, should we go for an internal, or an external candidate?

As a matter of policy, it’s always easier and cheaper to go for an internal candidate!  Because, the organization would know an internal candidate better; he/she will have a better understanding of the operating environment, the people and the culture within that organization.  The appointee will be a “known quantity”!  Both the hiring manager and the HR director will feel better about this outcome.  Our advice is always to look for an internal candidate first whenever there is a need to recruit, or fill a vacancy.  It is only, after a genuine effort has been spent in locating an internal candidate has failed, then we would recommend that the hiring manager be looking “outside”.

As a recruiter, our first question is always: Have you tried to look within your organization for an appointee?  Only if the reply is yes, then we will sincerely help the CEO or the HR director on the various options of recruitment.

What are the options?

Below is a table, depicting the pros and cons of 5 options for the recruitment process.
We would ask the reader to examine this table critically.

The considerations, relating to which options to take, are essentially based on time, the HR department’s and the hiring manager’s clout, the CEO’s political power, the importance of the vacant position to the organization and the availability of management time.  As a rule, sales, marketing, technical sales, customer service and front-line positions tend to have a quicker resolution than “staff” jobs such as finance, HR, production, government relations, PR, R&D, etc.  In recent months in an emerging market such as China, positions such as strategic sourcing, supply chain management, inventory control, etc. tend to have more “urgency” than they traditionally demand.

Of the many options depicted above, many traditional firms would chose options 2 and 3; only “forward-thinking” and “westernized” companies tend to chose option 4; and very brave ones would opt for option 5!

Based on our experience in the last 10 years, costs and politics are mostly the determining factors, rather than a thorough quantitative analysis.  For instance, it might be less costly to use a search firm than the traditional print-advertising route if one factors in the opportunity costs (of staff turnover if a recruitment is not successful, the orientation and training costs involved for any new staff) and the management time involved in the recruitment process (interviewing, screening, reference checks, etc.).  It takes a very analytical HR manager and CEO to recognize such hidden costs!

Also, politically speaking, an HR department tends to “mother” the recruitment process; and if this process is “out-sourced” to a recruiter, then the justification of an HR department becomes a political issue, than a rational and cost/profit one.

How to select a recruiter?

There are a number of considerations should the organization has decided on an out-side recruiter for the recruiting assignment. These are:

• Cost of the recruitment assignment:
  -   normally, it is 25-33% of the first annul cash compensation of the appointee, with a minimum fee of Rmb83K to US$25K
  -   whether it is going to be a “retained search” ( i.e. with some up-front payment), or a “success-basis” (i.e. payment on the successful candidate being appointed)
  -   payment methods, whether the payments are to be in 3 equal installments (this is the traditional head-hunting method of payment) and some other arrangements; the method of payments usually has an impact on the cash flow of the search firm and the hiring firm 
   
• Reputation and integrity of the search firm
   -   this is a very important issue, as the search firm should be treated as a business partner, thus sharing much of the commercial secrets and strategic direction of the organization; if the search firm cannot fulfill the ethics and integrity requirements, then it is a risky business
  -   therefore, the search firm’s credentials, reputation, track record and references must be checked thoroughly
  -   management style of the search firm must also be consistent with the hiring organization; again, based on our experience in the last 10 years, the CEOs’ styles must be compatible with each other, and the working relationship must be an open and cordial one
   
• Medium- to long-term perspective rather than a short-term one
  -   another consideration is the selection of a search firm is the timeline perspective; obviously, “in the long-term everybody is dead”; we’ll need at least a medium-term perspective, rather than a one-off convenience “marriage”
   
• A business partnership such that both parties can grow together
   -   the ideal case in the selection of a search firm is one that can be construed as a business partnership such that both parties can grow together
  -   it is until this concept can be practiced universally than the search firm cannot be treated as an equal partner

What next?

As soon as an engagement contract has been signed for the recruitment assignment, then the search process should be put in place:

• An approved position description should be used as the specifications document
• A list of target companies (minus the off-limits from the hiring and the search firm),
• target positions and target candidates should be drawn up by the research/consulting staff
• Candidate development
• Candidate interviews and candidate reports
• Client review of candidates
• Client interviews
• The timeline between the signing of an engagement and the client interview is normally 4-8 weeks; and a total of 5 suitable candidates, each must satisfy all the requirements of the core competencies as depicted in the position description; our record is 8 working days for a middle management position urgently required by a client
• Negotiation of packages; this is the hardest job as both parties can change due to the circumstances; a professional search firm will assist greatly in this process; it is also in our interest to have at least 2 selected candidates, in case the first choice fell through due to some un-resolved issues
• Please bear in mind that changing job is a big step for anybody; and the risk involved is quite high; therefore, it takes a very skillful and sensitive search consultant to ensure that the “marriage” will work and will take place

A thorough and professional search consultant will always “follow up” after an appointment, in order to ensure that “the marriage” is working well.  There are many “teething” problems which both parties are not ready to air, but can easily be resolved by a 3rd party.

Until the recruitment has proven successful and effective after 6 to 12 months, the search firm is not to rest entirely!