360 vs 180 – Pros & Cons of Recruitments top two models
In a time conscious, cost sensitive business environment more and more recruitment businesses are turning towards the 180 model. In IT, Engineering and Oil and Gas staffing across major centres like London, New York, Houston, Sydney and San Francisco it has almost become impossible for firms to run full 360 desks including interviewing face to face whilst competing on major accounts. It’s all about product and the relationship is developed after they see you have good consistent product. That said it has always remained that 360 Recruitment is “proper” recruitment and to ensure the quality of the product you need to be across all elements of the process.
Having worked both in models below are some of my insights on the Pros and Cons from a business perspective:
Pros of a 180 desk:
- Speed to market – with a delivery team behind you doing bulk interview for only certain types of skill set it becomes much easier to show your clients your capability quickly.
- More time to understand your clients’ needs – As the Account Manager is focused on building relationships on the client side of the business it means more time to build up your knowledge of what makes your clients tick.
- Reduced cost for the recruitment firm – The recruiters are generally more junior and it is common practice that they will be paid less than the account manager given they are not directly creating revenue for the business (however always looking out for leads).
- It allows the recruitment company to hire 2 very distinctively different people –
- Outsourcing becomes an option – More and more commonly found is outsourcing of the delivery work to places like the Philippines where they data mine job sites like Monster, Seek etc. and deliver qualified resume’s to either a delivery person on site for further screening or direct to the account manager depending the scale of the company.
Sales people – On the sales side of things you do not have to be as conscious about their time management and organisational skills as you would with a 360 recruiter.
Recruiters – On the delivery side, you can hire non sales focused administrators, or as a lot of companies are doing,
Cons of a 180 desk:
- Without strong sales professionals means a lack of results – If you do not have a mature sales process with dedicated high level sales professionals who are 100% focused on finding major account/business developing then this model is not for you as it will be hard to generate revenue – repeat business only goes so far!
- Lead generation can be an issue – When dealing with small & medium sized client’s market intelligence is lost in the candidate screening process such as leads that would normally be actioned by the 360 recruiter.
- Market knowledge can be diminished – The sales person gets detached from the product and loses their ability to gain inside knowledge from candidates on what is happening in the market/with competitors to the client. It therefore limits their ability to give inside knowledge to the client about the broader market.
- Communication problems between recruiter and sales person can occur – It is a case of Chinese whispers from both sides when trying to relay all relevant information (candidate or client side) amongst other things:
- The recruiter maybe didn’t listen, or forgot or didn’t understand what the Account Manager was looking for.
- The Account manager could have followed the same pattern when dealing with the client, assumed they knew what was needed and lacked detail in getting the requirements qualified properly etc. limiting the Recruiter in effectively performing their role.
Pros of a 360 desk:
- Control – The recruiter has control over all aspects of the Recruitment process and therefore builds a solid relationship with both client and candidate.
- Expertise – The recruiter will know his product inside out and be able to consult better on what’s going on in the market.
- Limits of human error – Time can be wasted in educating and directing a delivery team, it also limits the “Chinese Whispers” affect.
- Market mapping – For medium sized clients it’s much better to market map your area based on your candidate knowledge.
- Trust – When dealing with business owners and smaller businesses the relationship is much more important and having control encompassing the above point helps to drive a long lasting trusting relationship.
- Variety – For those who like doing a variety of tasks this is a better model as no 2 days will ever be the same.
- PSA’s – You do not need PSA’s from major accounts and don’t have to worry about not having enough roles to feed a delivery team.
Cons of a 360 desk:
- Time management – It is possible to manage your time correctly but most 360 Recruiters end up working every hour under the sun to properly service both their clients and candidates
- Enterprise accounts – It is hard to deliver on larger accounts with high volume.
- Sales skills v Admin skills – Most successful 360 Recruiters will be stronger on the sales side vs. the admin side sometimes meaning quality of service in regards to attention to detail can be affected.
- Speed to market – juggling a 360 desk can sometimes mean urgency and speed to market is affected, unless you’re at working a very niche desk over a long period of time.
- Training – From a business owner’s perspective finding and training good 360 recruiters is much harder than doing so with a 180 model.
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