Impact, Summer 2000, p.1 - ©2000 by The International Association of Corporate and Professional Recruitment - The hiring frenzy in the new millennium is creating a talent drain and causing some of the Fortune 500s 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 inhouse function to take care of their staffing needs.
Over 158 Human Resource executives offered opinions on inhouse search capability in a recent survey conducted by Jones-Parker/Starr, search consultants serving the executive search profession. Slightly less than half (46%) of the firms surveyed indicate that they have already established a form of inhouse capability by hiring recruiters from recruiting firms. A small group (6%) is considering
In spite of the confusion about language and the definition of inhouse 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 inhouse is an option gaining consideration. We know that experienced search consultants are being recruited into corporations and venture capital firms.
As
expected, cost is a significant reason to consider the inhouse option, with
almost half (39%) pointing to dollars as a prime motivator. Faster hiring
results (24%) and greater familiarity with the culture (24%) were sited as
important reasons for bringing the search function inhouse.
As to whom the corporations would bring in to staff this position, a healthy majority (57%) identify experience in retained executive recruiting as the most desirable background followed by experience in contingency work (22%). 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
While acknowledging that the Internet will play an increasingly important role in the selection of employees (69%) below the $150K salaries, 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.
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 available. There is a possibility that talent agents will become gate keepers and managers similar to the sports agent.
Learn more about Impact and the International Association of Corporate and Professional Recruitment (IACPR) at http://www.iacpr.org.