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01

OUT TO

SEARCHA 3RD PARTY RECRUITING COLLABORATION & PERFORMANCE SURVEY

WHAT’SIN THIS REPORT?

03 INTRODUCTION

05 KEY FINDINGS

10 NON-NEGOTIABLE: 3RD PARTY SEARCH IS CRITICAL TO RECRUITING

16 EMPLOYER/AGENCY COLLABORATION: CHALLENGES & OPPORTUNITIES

21 DATA MATTERS: 3RD PARTY SEARCH KPI & METRICS

25 ACTIONABLE INSIGHTS

27 DEMOGRAPHICS

30 ABOUT BOUNTYJOBS

INTRODUCTION

04

Teams focused on talent acquisition are required to successfully navigate many recruiting channels to source and secure the best talent for their organizations. And, while most organizations turn to 3rd party search to fill their most critical and hard-to-fill roles, every team engages in the process of leveraging this channel differently.

If everyone uses 3rd party search and not necessarily in the same way, how do you maximize the effectiveness and return from this channel?

INTRODUCTION

WHY 3RD PARTY SEARCH?

05

ABOUTTHISSURVEY

This report is based on a nationwide survey of more than 1,000 Human Resources, Talent Acquisition and Recruitment professionals. They come from companies of all sizes in a wide variety of industries and specializations.

The survey focused on exploring the unique relationship between companies seeking to fill roles and 3rd party recruitment agencies sourcing talent on their behalf. The goal was to identify common experiences from teams collaborating across the country.

Learn about the commonly shared challenges teams face when it comes to 3rd party search and get best practices from best-in-class organizations who are (at this very moment) getting the most return for their investment in 3rd party search.

INTRODUCTION

KEYFINDINGS

07

KEY FINDINGS

3rd party search is a commonly used recruitment channel for most companies. And, despite the surge in new tech solutions to recruiting, sending jobs out to search is as important a tool as ever. Survey respondents said they send 20% of their positions out to search. (The global average is 11%)*

* FROM STAFF ING INDUSTRY ANALYSTS

01SEARCH IS A STAPLE AND IT’S NOT GOING ANYWHERE

1 5IN

J O B S A R E S E N T T O S E A R C H

KEY FINDINGS

08

KEY FINDINGS

The fact that organizations rely on 3rd party search as a mechanism for filling key roles doesn’t mean it’s always a simple and easy process. Working with agencies comes with a set of unique challenges.

Top challenges include:

01 Evaluating ROI for agency spend

02 The time it takes to manage email and phone communication

with agencies

03 The time it takes getting an agency working on a job

(getting through contracts & procurement)

02THAT DOESN’T MEAN IT’S NOTCHALLENGING

KEY FINDINGS

H O W S I G N I F I C A N T I S T H I S C H A L L E N G E ?

61%HAVE PLANS TO IMPROVE PROCESSESRELATED TO 3RD PARTY SEARCH IN 2017.

O F E M P L O Y E R R E S P O N D E N T S

09

KEY FINDINGS

Commonly used approaches to tracking and measuring performance as well as ROI for other channels are not commonly used for managing and evaluating 3rd party search. While some best-in-class companies are ahead of the curve, others have less vigorous and comprehensive processes for tracking and measuring their search activities — making it difficult to evaluate channel efficacy and opportunities for improvement.

03RIGOR USED IN OTHER RECRUITING CHANNELS IS LOST IN 3RD PARTY SEARCH

KEY FINDINGS

<TRACK ROI FOR AGENCY SPEND.O F R E S P O N D E N T S S A Y T H E Y

L E S S T H A N 21%

NON-NEGOTIABLE:3RD PARTY SEARCHIS CRITICAL TO RECRUITING

11

3rd party search is a critical tool in the TA Toolbox. It’s not the highest volume or the least expensive channel for recruiting talent. But, even with a variety of other channels available, companies consistently send between 10-20% of their jobs out to search.

3RD PARTY SEARCH IS NECESSARY

NON-NEGOTIABLE: 3RD PARTY SEARCH IS CRITICAL TO RECRUITING

T I G H TL A B O R P O O L

C O M P E T I T I V EI N D U S T R Y

T I G H T T I M E L I N ET O F I L L A R O L E

S T R A P P E DR E C R U I T I N G T E A M

C O N F I D E N T I A LR O L E

L A C K O F S P E C I A L T YO N I N - H O U S E T E A M

60%55%

45%36%

30%22%

W H Y D O Y O U S E N D J O B S O U T T O 3 R D P A R T Y S E A R C H ?

12

Q: WHAT JOB CATEGORIES DO YOU SPECIALIZE IN?

E N G I N E E R I N G / I T

O P E R A T I O N S

P R O F E S S I O N A L / S P E C I A L I Z E D( E . G . A T T O R N E Y , N U R S E , B I O C H E M I S T , P H Y S I C I A N )

S A L E S / B U S I N E S S D E V E L O P M E N T

F I N A N C E

01

02

03

04

05


13

Q: WHAT SENIORITY LEVELS DO YOU SEND OUT TO SEARCH THE MOST?

C - L E V E L

30%

V P / S V P / E V P

38%

D I R E C T O R

38%

MAN A G E R

45%


14

Q: HOW WOULD YOU RATE THE JOB YOUR COMPANY DOES WHEN WORKING WITH AGENCIES?

There are 4 key aspects to working with agencies: managing the relationship, tracking candidate progress throughout the recruitment process, evaluating agency performance, and tracking agency spend. The majority of organizations feel they are doing well in all 4 aspects. In fact, over 50% of respondents said they feel they are doing a good or excellent job

across the board.

Among the various positive sentiments there was one key aspect that stood out as an area for improvement: evaluating agency performance. This had the lowest percentage of “excellent” responses at just 16%.

Does this matter? Yes! Being able to evaluate agency performance is a critical component in measuring the return you’re getting on your 3rd party recruitment spend. Tracking how much you spend without the agency performance relative to that spend diminishes your ability to quantify the value of what you’re paying for.


M A N A G I N G Y O U RA G E N C Y R E L A T I O N S H I P S

T R A C K I N G T H E P R O G R E S SO F C A N D I D A T E S T H R O U G H O U T

T H E R E C R U I T M E N T P R O C E S S

E V A L U A T I N G A G E N C YP E R F O R M A N C E

T R A C K I N GA G E N C Y S P E N D

E X C E L L E N T G O O D F A I R P O O R

20% 55% 22%

24%

35%

25%

3%

4%

14%

11%

40%

35%

36%

32%

16%

28%

15

Organizations are using 3rd party search to fill critical roles, and they feel they’re doing a good job at it. Do these findings translate into demand for the agencies and independent recruiters that are carrying out these searches? Almost 80% of agency respondents

indicated they are planning for an increase in engagements and fills in 2017. Agencies are ramping up for more business in 2017 and that’s a good thing for everyone. A healthy and expanding agency recruiting ecosystem is good for agencies; they have opportunities to win more business and acquire new customers.

However, it’s equally good for organizations using 3rd party search to fill roles. This growth means increased competition which brings about more options to choose from, specialization in industries or roles, and an increased focus on customer service and outcomes on the part of agencies looking to attract and retain long term relationships.

DEMAND INCREASEDICTATES AGENCY RAMP UP FOR 2017

M A N Y M O R E S O M E W H A T M O R E A B O U T T H E S A M E

S O M E W H A T F E W E R F A R F E W E R D O N ’ T K N O W

40% 37% 17%

2% 1% 3%


C O M P A R E D T O 2 0 1 6 , H O W M A N Y J O B S D O E S Y O U R A G E N C Y P L A N T O W O R K O N I N 2 0 1 7 ?

EMPLOYER/AGENCY COLLABORATION: CHALLENGES & OPPORTUNITIES

17

CHALLENGES UNIQUETO SEARCH

While 3rd party search is widely used by organizations of all sizes, the collaboration between employers and agencies does not come without friction points. Among the most challenging aspects of working with 3rd party recruitment agencies and independent recruiters was the process of identifying new agencies who are well suited for specific roles. This pain

point captured a whopping 76% of responses.

Other challenges? Respondents told us the following aspects of working with agencies are moderately to extremely challenging:


W H E N Y O U T H I N K A B O U T W O R K I N G W I T H R E C R U I T I N G A G E N C I E S , H O W C H A L L E N G I N G A R E T H E F O L L O W I N G ?

76%

71%

64%

60%

57%

I D E N T I F Y I N G N E W A G E N C I E S T H A TA R E B E S T S U I T E D T O F I L L M Y R O L E S

E V A L U A T I N G A G E N C Y R O II N C L U D I N G S P E N D & R E T U R N

T H E T I M E I T T A K E S T O M A N A G EE M A I L , P H O N E , A N D O T H E RC O M M U N I C A T I O N S W I T H A G E N C I E S

T R A C K I N G C O M P L I A N C E W I T HE S T A B L I S H E D H I R I N G P R O C E S S E S

T H E T I M E I T T A K E S T O G E T A NA G E N C Y W O R K I N G O N M Y J O B( I . E . N E G O T I A T I N G C O N T R A C T S , N A V I G A T I N G P R O C U R E M E N T )

T H E M I S S I N G D I M E N S I O N : P E R F O R M A N C E T R A C K I N G A C R U C I A L E L E M E N T T O I N T E R P R E T I N G A G E N C Y S P E N D I S A G E N C YP E R F O R M A N C E , A L M O S T H A L F O F R E S P O N D E N T S S T A T E D T H E I R O R G A N I Z A T I O N SD O A F A I R O R P O O R J O B O F T R A C K I N G A G E N C Y P E R F O R M A N C E

18

AGENCY FEES & ORGANIZATIONALOPINIONS

Agency fees, among the other challenges when engaging with agencies, are also a point of friction. Organizational opinions on the appropriate level of spend on these fees has resulted in starkly split responses among survey respondents.


W E S P E N D T O O M U C H ,B U T W E T H I N K W E

C A N O P T I M I Z E T H I S

D O N ’ T K N O W

W E S P E N D T O O M U C H ,A N D T H E R E ’ S N O T H I N G

W E C A N D O A B O U T T H A T

W E S P E N D T H E R I G H TA M O U N T O N A G E N C Y F E E S

30%

23%

8%

38%

T H E M I S S I N G D I M E N S I O N : P E R F O R M A N C E T R A C K I N G A C R U C I A L E L E M E N T T O I N T E R P R E T I N G A G E N C Y S P E N D I S A G E N C YP E R F O R M A N C E , A L M O S T H A L F O F R E S P O N D E N T S S T A T E D T H E I R O R G A N I Z A T I O N SD O A F A I R O R P O O R J O B O F T R A C K I N G A G E N C Y P E R F O R M A N C E

W H I C H B E S T D E S C R I B E S H O W M U C H Y O U R C O M P A N Y S P E N D S O N A G E N C Y F E E S ?

19

THE CHALLENGES AREN’T ONE-SIDED

Two common themes emerged within the collaboration pain points discussion for both employers and agencies.

01 Expectation Setting In an environment where external 3rd parties are acting as an extension of an HR team, setting expectations (timeline, goals, rules of engagement) is critical. In cases where time delays on either side of the collaboration are a pain point, early discussions about timeline expectations could help mitigate frustration later in the process.

02 Communication A clear understanding of the desired candidate is the easiest way to streamline a job search, however, on both the employer and agency side there are major pains related to what boils down to lack of communication. Whether it’s not enough information at kick off or lack of feedback along the way; the communication gap affects the 3rd party recruiter’s ability to source candidates properly. This also affects their ability to course correct when they’re off the mark to better ensure they serve the employer with exactly what they’re looking for.

C O L L A B O R A T I O N P A I N P O I N T S

E M P L O Y E R S A G E N C I E S

Many of the resumes we receive are not appropriate and/or not a good match Time lag in giving candidate feedback

Agencies do not position the job to the candidates properly Employer non-response

Hiring managers engage with agencies outside our standard process Compensation is under market

We receive too few resumes Time lag in answering my questions

It takes too long for agencies to send us resumes Poor job descriptions


20

ORGANIZATIONS ARETAKING INITIATIVE

The good news? Many of these problems are solvable & organizations are already thinking of ways to tackle them.

Over 60% of employer respondents stated that they have plans or initiatives to improve one or more processes related to 3rd party search within their organizations in the next 12 months.


W H I C H O F T H E F O L L O W I N G P R O C E S S E S , I F A N Y , D O E S Y O U R D E P A R T M E N T O R C O M P A N Y H A V E P L A N S O R I N I T I A T I V E S T O I M P R O V E I N T H E N E X T 1 2 M O N T H S ?

25% IDENTIFYING NEW AGENCIES THATARE WELL SUITED TO FILL MY ROLES

36% EVALUATING AGENCY ROI,INCLUDING SPEND & RETURN

36% TRACKING COMPLIANCE WITHESTABLISHED HIRING PROCESSES

13% THE TIME IT TAKES TO MANAGE EMAIL,PHONE, AND OTHER COMMUNICATIONS

28% ENGAGE DIVERSITY AGENCIESOR HIRE DIVERSITY CANDIDATES

9% THE TIME IT TAKES TO GET AN AGENCYWORKING ON MY JOB(E .G. NEGOTIATING CONTRACTS, NAVIGATING PROCUREMENT)

DATA MATTERS:3RD PARTY SEARCHKPI & METRICS

22

KEY FINDINGS

Running an efficient talent acquisition organization requires a skillful and well balanced use of the channels (internal and external) for sourcing and hiring talent. The ability to forecast, plan, and measure progress as well as success or failure across these channels requires data. When it comes to the challenging and expensive 3rd party recruiting channel, many TA teams do not have the data they need to help maximize efficiency (for results or spend).

In fact, over 71% of employer respondents find it challenging to evaluate the ROI from their agency spend. While ROI is only one key metric in evaluating success in 3rd party recruiting, many employers told us they don’t commonly track many industry KPIs for 3rd party search.

TACKLINGTHE DATA MONSTER

DATA MATTERS: 3RD PARTY SEARCH KPI & METRICS

64%T I M E T O F I L L

55%C O S T O F H I R E

48%

38%

Q U A L I T Y O F H I R E

S P E N D28%

42%

R E T U R N O N I N V E S T M E N T

H I R I N G M A N A G E R S ’S A T I S F A C T I O NW I T H T H E P R O C E S S

C A N D I D A T ES A T I S F A C T I O NW I T H T H E P R O C E S S

27%

30% 12%H O W W E L L A G E N C I E SF O L L O W C O M P A N YP R O C E S S E S

N O N E O FT H E A B O V E

27%I N T E R V I E W R A T E

23

Q: WHAT METRICS DOES YOUR COMPANY TRACK FOR JOBS THAT GO TO SEARCH?


W H Y N O R O I ?

L E S S T H A N 1 / 3 O F O R G A N I Z A T I O N S W E S U R V E Y E D T R A C K R O I F O R 3 R D P A R T Y R E C R U I T I N G S P E N D .

T H I S M E T R I C I S C R U C I A L T O U N D E R S T A N D I N G H O W T H I S I N V E S T M E N T I S P E R F O R M I N G ( I N G E N E R A L A N D I N R E L A T I O N T O O T H E R C H A N N E L S ) .

E X T R E M E L YV A L U A B L E

M O D E R A T E L YV A L U A B L E

V E R YV A L U A B L E

S L I G H T L YV A L U A B L E

N O T A T A L LV A L U A B L E

T I M E T O F I L L

C O S T O F H I R E

Q U A L I T Y O F H I R E

S P E N D

R E T U R N O N I N V E S T M E N T

H I R I N G M A N A G E R S ’ S A T I S F A C T I O NW I T H T H E P R O C E S S

C A N D I D A T E S A T I S F A C T I O NW I T H T H E P R O C E S S

H O W W E L L A G E N C I E S F O L L O WC O M P A N Y P R O C E S S E S

I N T E R V I E W R A T E

29% 28% 22% 15% 6%

32% 31% 23% 10% 4%

36% 37% 18% 7% 2%

38% 38% 16% 7% 1%

45% 33% 14% 7% 2%

33% 33% 22% 9% 4%

33% 34% 24% 7% 3%

49% 34% 11% 4% 2%

35% 38% 21% 5% 2%

24

We asked employer respondents who don’t currently track the standard TA metrics (listed in previous chart) to tell us if tracking them would be of value.

Here’s what they said:

THE FIRST STEP IS ADMITTING THERE IS A PROBLEM.


ACTIONABLE INSIGHTS

26

01 SEARCH IS A STAPLE & IT’S NOT GOING ANYWHERE…. THAT DOESN’T MEAN THERE ISN’T ROOM FOR OPTIMIZATION

We know TA organizations rely on

3rd party search to fill roles and they

are going to continue to do so. From

executive and hard to fill roles to

support for strapped recruiting teams;

both employers and agencies are

gearing up for continued and expanded

collaboration in 2017.

There is room for improvement as there

are challenges large and small on both

sides of the collaboration. Understanding

and addressing these challenges can

help save organizations time and money.

02 THE CHALLENGES TO OPTIMIZATION ARE SOLVABLE

The good news is the majority of the

challenges are solvable and many teams

are already looking at ways to overcome

them (this year!). To recap, we see

communication and expectation setting

as the two main friction points between

employers and agencies collaborating

on roles.

Working together to fill roles takes

teamwork and like any collaboration it

requires investment from both sides

of the equation.

Employers, agencies are working on your

behalf to sell both your organization and

your role. Arm them with as much as

possible to help them sell your role well.

Agencies, employers are juggling a lot of

things at once and their time is limited.

Get as much information as possible

up front to help set you up for success.

Follow the rules of engagement — going

directly to hiring managers does not

guarantee you different results; it might

actually work to your detriment.

03 DATA IS VALUABLE AND IT HELPS GUIDE EFFICIENCY AND RETURN FOR 3RD PARTY SEARCH

Data is crucial in developing and

evolving processes and overall strategy

for making the most of 3rd party search.

In contrast to other internal recruiting

channels, common metrics are not

tracked for jobs sent out to search.

Whether your organization is simply

looking to get a picture of what you

spend on search in a year, or you are

focused on optimizing the results from

your investment in 3rd party recruiting,

you need data. And before you can have

data, you need tools and processes to

capture that data.

SO, WHERE DO WE GO FROM HERE?

ACTIONABLE INSIGHTS

SURVEY DEMOGRAPHICS

28SURVEY DEMOGRAPHICS

~1000H R P R O F E S S I O N A L S (AGENCY & EMPLOYER)

+35J O B I N D U S T R I E S

2%

T O P I N D U S T R I E S

“ H I R I N G M A N A G E R F O R N O N - H R D E P A R T M E N T ”

39%“ R E C R U I T E R / S O U R C E R F O R M Y C O M P A N Y ”

50%“ L E A D T A L E N T

A C Q U I S I T I O N A C T I V I T I E S F O R M Y C O M P A N Y ”

8%“ L E A D H U M A N

R E S O U R C E A C T I V I T I E S F O R M Y C O M P A N Y ”

27%“ I W O R K F O R A R E C R U I T M E N T

A G E N C Y A S A R E C R U I T E R ”

35%“ I O W N A R E C R U I T M E N T A G E N C Y T H A T E M P L O Y S P E O P L E O T H E R T H A N M Y S E L F ”

38%“ I A M A N I N D E P E N D E N T

R E C R U I T E R , W O R K I N GF O R M Y S E L F ”

30%

11%

C O M P A N Y S I Z E D I S T R I B U T I O N

8% 8%

28%

E M P L O Y E R R O L E S A G E N C Y R O L E S

O V E R 1 0 , 0 0 0E M P L O Y E E S

5 , 0 0 1 – 1 0 , 0 0 0E M P L O Y E E S

1 , 0 0 1 – 5 , 0 0 0E M P L O Y E E S

5 0 1 – 1 , 0 0 0E M P L O Y E E S

L E S S T H A N5 0 0 E M P L O Y E E S

HEALTHCARE/HEALTH SERVICES

17%

INFORMATIONTECHNOLOGY

12%

FINANCIALSERVICES

10%

MANUFACTURING& PRODUCTION

7%

29SURVEY DEMOGRAPHICS

E X P E R I E N C E M A T T E R S

N E A R L Y 8 0 % O F A G E N C Y S U R V E Y R E S P O N D E N T S H A V E B E E N W O R K I N G A S R E C R U I T E R S F O R M O R E T H A N 1 0 Y E A R S .

E M P L O Y E R E X P E R I E N C E

R E G I O N S T A L E N T I S S O U R C E D F R O M

A G E N C Y E X P E R I E N C E

LESS THAN 1 YEAR

UNITED STATES

7%LESS THAN 1 YEAR

1%MORE THAN 10 YEARS35%

77%MORE THAN 10 YEARS

99% CANADA26%

MEXICO, CENTRALAMERICA & THE CARIBBEAN

20%

6–10 YEARS21%

6–10 YEARS13%

1–5 YEARS37%

1–5 YEARS9%

EUROPEAN UNION &UNITED KINGDOM

25%MIDDLE EAST8%

ASIA PACIFIC19%

SOUTH AMERICA13%

INDIA15%

CHINA14%

JAPAN12%

ABOUT BOUNTYJOBS

31

KEY FINDINGS

Our web-based platform consolidates 3rd-party search activities into one convenient location; giving talent acquisition leaders the tools to track, manage, and evaluate their search spend. The result: better hires, faster. BountyJobs is headquartered in Austin, TX and is backed by Greylock Partners, Accel Partners, and RPM Ventures.

1 1 1 4 L O S T C R E E K B L V D S T E 4 2 0 A U S T I N , T E X A S 7 8 7 4 6

BOUNTYJOBS IS THE LEADING TECHNOLOGY FOR COLLABORATION BETWEEN EMPLOYERS AND AGENCIES

ABOUT BOUNTYJOBS

L E A R N M O R E A B O U T B O U N T Y J O B S A T B O U N T Y J O B S . C O M

10,000+H I G H L Y - S P E C I A L I Z E D A G E N C I E S

$1.25BI N P L A C E M E N T F E E S

750,000C A N D I D A T E S S U B M I T T E D

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