The Head-hunter, 2000, p. 1-2 - ©2000 by Executive Grapevine International Limited - Research conducted by US based Jones-Parker/Starr has revealed that the hiring frenzy in the new millennium is creating a talent drain and causing some of the Fortune 500 companies to think about the best ways to deal with the competition and demand for superior executives.
Venture capital firms with portfolio companies and new
start-ups with volume hiring needs must attract quality management.
All are casting an eye at the feasibility of creating an in-house function
to take care of their staffing needs.
Over
158 Human Resource executives offered opinions on in-house search capability in a
recent survey conducted by Jones-Parker/Starr, US search consultants serving the
US search market. Slightly
less than half (46%) of the firms surveyed indicate that they have already
established a form of in-house capability by hiring recruiters from recruiting
firms. A small group (6%) is considering this
option and almost one quarter (23%) feel that in-house search capability makes no
sense. 2% say they have tried
it, but it did not work.
Janet
Jones-Parker commented: "In spite of the confusion about language and the
definition of in-house search capability, as evident in the number of respondents
who said they are satisfied with their 'staffing departments', it is clear that
moving executive search in-house is an option gaining consideration.
We know that experienced search consultants are being recruited into
corporations and venture capital firms."
Cost is a significant reason to consider the
in-house option, with
almost half (39%) pointing to dollars as being a prime motivator. Faster hiring
results (24%) and greater familiarity with the culture (24%) were sited as
important reasons for bringing the search function in-house.
As
to whom the corporations would bring in to staff this position, 57% identify experience in retained executive recruiting as the most
desirable background followed by experience in contingency work, 22%.
Jones-Parker
commented: "Retained search consulting experience is usually better preparation
for these positions. Retained
consultants are accustomed to working in highly sophisticated, complex
situations with top management. They
know how to determine the fit between experience and talent on the one hand, and
culture and organizational need
on the other. They bring superb
listening skills and objective judgment to the task."
Whilst acknowledging that the Internet will play an increasingly important role in the selection of employees below $150K, (69%) outside executive recruiting will continue to be an important factor in the talent wars ahead.
Traditional
search firms will be happy to learn that the vast majority of the respondents
(93%) still feel that external consultants can attract better talent at the
senior management levels.
Jones-Parker concluded: "Talent will rule. The recruitment process, both external and internal, will continue to need fine-tuning so that companies can attract the highest quality talent."
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