The title above will not pleased many people. Well, to be honest, I am not here to please the readers, I am here to show you why this is happening and why you should start worrying if you are a headhunting company or intending to open a business in headhunting….
Dangerous Trends that are Happening
Internal recruitment – More and more companies, especially the big boys in Singapore are using their own internal recruitment recruiters to source for their candidates and this will continue to be in a progressive trend as it is far much cheaper and sometime more efficient for the companies compared to hiring a headhunter.
Linkedin Recruitment – More and more top level candidates are hire directly via Linkedin or Linkedin jobs, this provides an alternative platform for companies to hire directly as many of the candidates profile can be seen via through Linkedin. In fact, many of the top headhunting firm are also using Linkedin as their source of candidates, the questions is, if the headhunters can do it, why can’t the internal recruiter do it?
“There is always a better way…Are you willing to try it?”
More open market information and technology- As more and more advance recruitment techniques are available via websites and technology, it is far much faster, easier and cheaper to hire via through these channels, with that, there is no need for companies to give their job orders to the headhunters at all.
Competitions– As there are more and more headhunters coming in to setup their own firm, eventually the price war will come in and profit margin will drop, there will be situation where even the total billing of the headhunters are not even good enough to pay the headhunters salaries!
Complacency – The same client will not be with the same headhunter forever, it is a practical world out there, whoever is able to provide a better service, with a better quality and CHEAPER price will eventually get the deal done. Loyalty is getting non-existence after awhile…sad but truth!
Info-Age Era – Seasoned headhunters used their same way of recruitment and sourcing for client like 10-20 years ago, and to be honest, it will not work in the current info-age era, even as The Recruitment Guru, what I have taught my students 5 years back are considered to be obsolete!
You need to be on top of things, even what you have learned 12 months ago may not work now!
Rentals and Wages are Killing the Headhunting Firms – Especially in Singapore, the office rental is consider one of the highest in the region, even big MNC headhunting firms are moving out of the business district to a cheaper place, wages are always increasing….but the billing amount to client somewhat gets lesser and lesser!!
Ignorance about Market Tumour – I have covered these topic about 10 years ago, and I would still need to touch based on this again, if your client is throwing their job orders to 5 different headhunters, in which you will never know, forget about closing the deal, you will be wasting your time. Your chances of closing is not 20%, your chances of closing will be 0%. Because I need to take into consideration the candidates are also throwing their resume to as many headhunters and direct companies as possible to get the job they want.
The clients need not show you the favour, the candidates do not give you the face too. You will be doomed!
Incompetent Headhunters – How many hours of training have the headhunters gone through every year? In the insurance and real estate industry in Singapore, people are being trained at least 40 hours per year to upgrade their skills – How about the recruitment industry, if you really averaged it out across the recruitment industry, the hours spend on becoming a better headhunter are pretty much non existence!
Most of the headhunter firms will close down, many will open too. They entire cycle will be ongoing without failed.
However, there are ways to overcome them, I will touch based on this in another article.
Cheers and God bless those headhunting firms!
Dougles Chan – The Only Recruitment Guru ~