Quality is important to every business, no industry is that more evident than in Recruitment and Staffing.  In a 2008 staffing industry study conducted by iLoyalty, the quality of candidates delivered ranked as the number one most important criteria when deciding on a staffing firm.

*Information from 2008 annual iLoyalty staffing industry study.  This study surveyed 500 companies, represented $100M annual staffing budget, with a median external staffing budget of $50K. 

Having been the corporate human resources professional who managed over 150 staffing service providers (vendors) and designed the accompanying RFP process for a large provincial employer, these findings come as no surprise.  Each month, our budget for external staffing services was over $2 M and whether it was deciding on which recruitment and staffing provider to place on our vendor list or awarding contracts, our number one consideration was the quality of candidates.

So what does delivery of quality of candidates mean to the employer?  For this employer, quality candidates are:

• Qualified, screened, tested to meet requirements
• Prepared to perform well in an interview as well as in their role
• Present accurate and current resumes
• Available to start either ASAP or within 2 weeks
• Are professional in appearance
• Local
• Have positive references
• Communicate well with good interpersonal skills.
• Able to demonstrate qualifications and provide sample documentation

You may note from the chart above, that billable rate came in as fourth on the list.  Again, we can validate this finding having been the HR professional representing the employer’s interest.  While the fees charged is a business reality, the truth is most employers we worked with were not overly concerned with rates so long as the candidate rates were similar to the rate scales proposed by other companies. 

These findings would suggest that employers are not as price sensitive as once thought.  Perhaps demonstrating a market for a premium quality service at higher pricing.   If so, then this is ironic since many staffing and recruitment providers continue to feel pressure to lower fees from the commodification of their industry. 

The cost of service failure

This study also looked into the cost to a staffing company when they fail to deliver quality service.  This was accomplished by examining the relationship between a staffing company’s service failure and their client’s willingness to recommend them.  The study contained 39 questions that rated staffing service delivery within 7 dimensions.  The employers rated their primary staffing provider on a 10-point scale (with 10 representing the most positive perception).

*Information from 2008 annual iLoyalty staffing industry study.  This study surveyed 500 companies, represented $100M annual staffing budget, with a median external staffing budget of $50K.

The results show that there is a dramatic decrease in the employer’s wiliness to recommend their primary staffing company with even one low service rating.  In other words, employers appear to very unforgiving and sensitive to service failures.

Conclusion

While you may be tempted to submit a less than stellar resume or candidate to your client in the hopes of making a quick placement, don’t give in to this temptation.  As the findings above show, sending resumes and candidates that are less than perfect and providing service that is less than stellar will cost you significantly. 

Discipline in recruitment fundamentals will go a long way.  Thoroughly review resumes, screen and test candidates prior to submission to ensure you send quality applicants.
If you have a good candidate with a poor resume or who does not interview well, identify areas for improvement and offer practical suggestions.  Direct them to books, websites, and other sources of information or connect them with resume writers or interview coaches before submitting them to employers.

Remember, that the resumes and candidates that you send to your client represent the quality of your work on which you will be judged.  Resumes that are up to date, accurate, and speak to the employer’s requirements along with candidates that interview well are a testament of your good work.

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Article authored by HRinmotion.com, Candidate Preparation Software

HRinmotion works with over high profile fast-growing recruitment and staffing companies to prepare their candidates and build their brand.

Our candidate preparation software is an innovative learning software for the staffing and recruitment industry’s candidates. Our online recruitment and staffing software provides training on demand to help you prepare your candidates, build your brand, and save your time.