News »Browse Articles »
Seven Reasons to be a Contract Recruiter
0
Seven Reasons to be a Contract Recruiter
Many contract recruiters wish they had taken that internal recruiting position offered to them two or three years ago. As in every recession, being an internal employee is viewed with envy. It seems only logical that as layoffs and cutbacks greatly reduce the number of contract recruiters, the interest in being a regular employee rises. The lure of a regular paycheck, benefits, and the sense (although false) of security score high.
But I am not so sure that a contract recruiter should want to be an employee. While the functions that HR performs may be essential, they don’t necessarily have to be performed by an employee. Organizations are realizing that they have more employees than they need — and very often in the wrong place. Why should any organization spend salary, development, and retention dollars on employees who do not generate new products or revenue? What does a recruiter contribute that an contractor could not? There are already hundreds of companies that have replaced their recruiting team with contractors and third-party recruiters and have had success. Unfortunately, most HR professionals are convinced that their organization could not function without them as employees, but I think they are wrong.
Given what is happening in business strategy, HR is about to undergo the biggest reduction in workforce it has ever seen.
In an article written just a few days ago, Cowan analyst Peter Goldmacher says “. . . large companies will outsource an increasing amount of HR functions. . .” and raised his predictions for Kenexa stock. The Human Resource Outsourcing Association’s membership is growing rapidly, and more organizations are finding that they can successfully outsource large portions of the HR function and enjoy good service with lower costs. Over the next decade, outsourcing and automation will accelerate and other administrative functions such as IT, finance, and legal will also be outsourced. I am fairly certain that over the next decade, self-service, automation, and outsourced services will replace the majority of HR jobs within corporations.
That puts any independent professional in a good position. Outsourcing firms as well as corporations will be looking for people willing to work on fixed contracts with performance clauses. This will panic many HR professionals, but recruiters are in a good place. Except for the ATS, they are able to perform with little other internal support. Sure it will require recruiters to develop marketing skills, invest in some branding, and learn to negotiate, but it will pay back with many dividends.
Here are seven reasons that being a contract recruiter is better than being an internal employee.
Reason #1: Job Security. There is no job security working as an employee. I think anyone in a job that does not generate revenue, invent new products or services, or interact with customers in a strategic way is in jeopardy of being laid off in the next year or so, as I indicated above. There is no better security than that you create for yourself. If you build the networks, skills and put aside the resources to weather the downtimes, you will find much greater security in working for yourself.
Reason #2: You Do More and Do it Better. As an entrepreneurial recruiter, you will have to develop more cost-effective, and efficient recruiting methods, lower costs, and improve customer satisfaction. These have been elusive goals for corporate recruiters, who struggle with internal bureaucracy, an HR leadership team that does not understand or appreciate what a recruiting function needs to be successful, and few dollars for investment. There is almost no benefit to a corporate recruiter in being more efficient or cost effective. If they try to do so, they will lose budget dollars and staff. Contract recruiters can make prompt decisions and invest where they need to and therefore better serve their customers, and reap the greater profits.
Source:
http://www.ere.net/2009/06/10/seven-reasons-to-be-a-contract-recruiter/
But I am not so sure that a contract recruiter should want to be an employee. While the functions that HR performs may be essential, they don’t necessarily have to be performed by an employee. Organizations are realizing that they have more employees than they need — and very often in the wrong place. Why should any organization spend salary, development, and retention dollars on employees who do not generate new products or revenue? What does a recruiter contribute that an contractor could not? There are already hundreds of companies that have replaced their recruiting team with contractors and third-party recruiters and have had success. Unfortunately, most HR professionals are convinced that their organization could not function without them as employees, but I think they are wrong.
Given what is happening in business strategy, HR is about to undergo the biggest reduction in workforce it has ever seen.
In an article written just a few days ago, Cowan analyst Peter Goldmacher says “. . . large companies will outsource an increasing amount of HR functions. . .” and raised his predictions for Kenexa stock. The Human Resource Outsourcing Association’s membership is growing rapidly, and more organizations are finding that they can successfully outsource large portions of the HR function and enjoy good service with lower costs. Over the next decade, outsourcing and automation will accelerate and other administrative functions such as IT, finance, and legal will also be outsourced. I am fairly certain that over the next decade, self-service, automation, and outsourced services will replace the majority of HR jobs within corporations.
That puts any independent professional in a good position. Outsourcing firms as well as corporations will be looking for people willing to work on fixed contracts with performance clauses. This will panic many HR professionals, but recruiters are in a good place. Except for the ATS, they are able to perform with little other internal support. Sure it will require recruiters to develop marketing skills, invest in some branding, and learn to negotiate, but it will pay back with many dividends.
Here are seven reasons that being a contract recruiter is better than being an internal employee.
Reason #1: Job Security. There is no job security working as an employee. I think anyone in a job that does not generate revenue, invent new products or services, or interact with customers in a strategic way is in jeopardy of being laid off in the next year or so, as I indicated above. There is no better security than that you create for yourself. If you build the networks, skills and put aside the resources to weather the downtimes, you will find much greater security in working for yourself.
Reason #2: You Do More and Do it Better. As an entrepreneurial recruiter, you will have to develop more cost-effective, and efficient recruiting methods, lower costs, and improve customer satisfaction. These have been elusive goals for corporate recruiters, who struggle with internal bureaucracy, an HR leadership team that does not understand or appreciate what a recruiting function needs to be successful, and few dollars for investment. There is almost no benefit to a corporate recruiter in being more efficient or cost effective. If they try to do so, they will lose budget dollars and staff. Contract recruiters can make prompt decisions and invest where they need to and therefore better serve their customers, and reap the greater profits.
Source:
http://www.ere.net/2009/06/10/seven-reasons-to-be-a-contract-recruiter/
