Two weeks ago on LinkedIn (thanks Greg Webster from Cox Purtell Staffing Services), I was reminded of one of my blogs from the distant past; Rec-to-recs: What should they deliver?
When I read the blog again, I was surprised to find that it's now six years old. In consulting my blog stats, I discovered that it is ranked #7 on the list of my most-viewed blogs (out of 431 blogs published since 26 March 2008). The 38 comments that the blog generated remains the second highest number of comments that one of my blogs has attracted (Now Hiring 32 Professionals: All Agencies welcome to submit candidates* written in August 2009, about Atlassian's rules for working with recruitment agencies, just topped it with 40 comments).
Another Cox Purtell consultant, Imogen Ryan, suggested I write an update on the original blog; a good idea, I thought. So here we are.
Undeniably the rec-to-rec sector has gone through some challenging times since I wrote the original blog. Rosemary Scott's business, Scott Recruitment, is no longer a national business. The franchise model that Scott Recruitment previously operated under is no longer in operation. The Scott Recruitment website lists one location and two recruiters, including Rosemary herself, who is obviously back on the tools again.
Former Scott NSW Franchise owner, Deborah Ross, after a short period running her own rec-to-rec business, is now part of the team at yet another, kind-of franchise model that is seeking to attract experienced and successful recruiters into self-employment.
Former Scott Queensland Franchise owner, Belinda Beekman, after a short period running her own rec-to-rec is now in real estate sales.
Former Scott Victoria Franchise owner, Craig Watson, has been running his own rec-to-rec, Watson Collard, in partnership with former Scott Victoria employee, Luke Collard since March 2014.
Former Scott West Australia Franchise owner, Bunty Paramor has been running her own rec-to-rec in Perth for over three years now.
The tale of Scott Recruitment's dramatic downsizing is replicated in other rec-to-recs throughout Australia, albeit on a much smaller scale and without the unwelcome publicity that messy and protracted court action brings.
I can't find a rec-to-rec in this country that has even six employees, total!
It's clear, for the time being at least (and probably for the longer term), that rec-to-recs will be micro businesses that have owners working from home or a co-working space and have one or two employees, probably working part-time and/or from home, focusing on candidate sourcing. I mean, let's face it, is any rec-to-rec short of jobs to work on?
The questions I am interested in finding out the answers to are these:
- What sort of business model creates a sustainable and profitable rec-to-rec?
- Are any rec-to-recs doing anything dramatically different that's working?
- Are any rec-to-recs charging their clients using anything other than the traditional formula of ‘percentage of starting remuneration' fee?
- Are any rec-to-recs consistently able to deliver top candidates to their best clients?
- What assessment technology are the best rec-to-recs using? How is it helping them place candidates with little or no recruitment experience)?
- Which rec-to-recs are delivering value for their clients, beyond candidate referrals and placements?
- What future is there for rec-to-recs?
Next week I plan to write a follow up blog to this one, aiming to answer all of the questions above, with lots of quotes and examples. But, I need your help.
Please send me your views on the rec-to-rec sector via the comments section below, or if you prefer to remain anonymous (publically, at least) then send an email to email@example.com or call me on 03 5977 1577 or 0423 557701.
I look forward to hearing everybody's views.
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