Why would you hire a large sales force, VP of Sales and CFO to let them go 90 days later…..

Finally word has gotten out that they are planning on charging recruiters $400 a month to get more than 2 engagements starting in april 2009.

After this experience, I am convinced now more than every before the importance or recruiters in assisting companies to hired talent.

There is no way a company any company can fill all critical jobs on its own without the assistance of a recruiter. The problem is that Most HR departments are very shortstaffed and are now forcing hiring managers do their own recruiter. It this fair….? No ….Is this the best use of employees’ time? No……Are fees are not high? when you consider that some jobs are vacant 6 months to year and yes so same overworked hiring managers quit their jobs…….

My only negative about Bounty jobs is their inability to attract more and more high level jobs from various companies. Who wants to work on a job that only pays commissions of $5000 dollars….forget it…..

Many of the comments are right-on-point for well managed HR departments of big companies or companies in a constant recruiting and hiring mode, e.g. Microsoft, Google, late stage growth companies, who have invested heavily in a professional in-house HR recruiting staff. However, I see two areas where the demand side will be hugh, and find the services of a BountyJobs valuable.

1. Low turnover, stable headcount entities. Most companies aren’t big, nor are they in a constant hiring mode. At many of these companies, the HR professionals come from a benefits or process background, and when it comes to recruiting, they are as lost as the functional managers needing to hire or replace someone. As such, the HR professionals at the vast majority of companies don’t possess the expertise necessary to adequately do recruiting in-house. This is not a slam at these HR professionals, its just not their area of expertise. HR professionals who have a good background in recruiting and hiring, will not be happy at one of these companies, since there are very few people to recruit. Also, I learned long ago that to be successful in hiring, a company needs to be constantly interviewing and filling its pipeline of candidates. With little turnover and/or headcount growth, having recruiting a 100% varible cost is more the norm. When you are only hiring four to eight people per year, accross all departments, the services of a BountyJobs makes sense. These companies will find services such as BountyJobs of value. Most of these HR professionals will feel more comfortable screening recruiters, than they will screening candidates. Everybody wins.

2. Small start-up companies will drive demand. Start-ups aren’t going to hire one, two or three fulltime recruiters, and someone to manage them, when what they really need is five engineers, three software coders, four sales folks, two marketing people, etc., etc. I can hear the argument now with the line managers: “What? We’re going to hire two or three Recruiters first? Before we hire the folks needed to design the product, find the customers, build a brand….” It is the chicken and egg deal. No real right answer, but in the end, when its VC money, the headcount goes to engineering, sales and marketing first, then to staff functions like finance and HR.

I know the argument is search fees versus salaries of in-house recruiters, with the latter being substantially less and a much better ROI. But the time it takes to recruit and onboard an in-house recruiter will be spend on hiring engineers, sales people and marketing folks. Not saying its right, but it is how the real world works.

Thanks for the education!
C/

Some of these posts have asked if other sites are available which are similar. At Yellojobs.com, we allow employers to post jobs for free, provided they put a referral reward on each job. That reward is paid to the person who refers the candidate they hire and is only paid if a successful hire results. Most contingent search firms live and die through referrals of qualified candidates from people they talk with(ie troll for).
Yellojobs.com is an open community (anyone may join), while H3, Bountyjobs, dayak and others are closed (must meet specific criteria/pay to join). We help employers tap directly into people’s social networks. We are operating in India, with $15 million in rewards available and have just started a soft launch in the US. To learn more, check out the interview Joel did with our team last week. http://www.cheezhead.com/2008/07/01/meet-yellojobs/