The commoditization of staffing - At what cost?

Posted by:Whitridge in Technology Careers
08 October 2013 0

The world of IT Staffing has changed dramatically. As technology and social media have made the world smaller, it has also changed the way we communicate. More and more people are letting their fingers do the talking rather than picking up the phone. In business, this depersonalization of how we communicate has become our new operating reality.  We have adopted this in the spirit of “greater efficiency and productivity” due to the demands of deadlines and busy work schedules. Employers simply do not have the time to answer the numerous calls from IT Staffing firms trying to get a foot in the door. It is “easier” to identify their need, create a job description, email it to HR, send it out through the vendor portal and wait for the applicants to roll in…

At the corporate level, there are constant pressures to streamline efficiencies and reduce costs. None more pressing than the rising cost of employment and the advent of mandatory healthcare. Procurement and Human Resources are now working together to create programs to streamline hiring and onboarding new employees. Vendor Management Programs are implemented and applicant tracking systems are purchased to analyze the number of applicants and measure the cost savings realized per hire. Candidates are presented through portals, interviews are booked electronically, and candidates are interviewed through Skype and an offer is made. Sounds simple, right?

The challenge is that as the process has become more “streamlined,” the intangibles of what makes a good hire have been lost. When I speak to hiring managers and ask them what the most important characteristic is in the right candidate, they immediately speak of the soft skills that are important to function within their team.  We are measuring the cost of a new hire as opposed to the value of the right hire.

As a leader in IT Staffing, Whitridge recognizes that there is a science as well as an art to finding the right candidate. The science is in matching skills sets with a job description. The art is in finding a candidate who has the desired skills while also having the ability to communicate effectively, immerse themselves into a new culture, and work collaboratively with their new team to solve a business issue. Hiring managers are screaming for talent that has the technical and soft skills to make an impact on their team, and drive their business forward. Is the best way to find the right candidate to keep funneling resumes through an online portal until a match is found?

Cost per hire is a two way street, especially in IT Staffing and search. If we are to automate and measure the onboarding of candidates to maximize savings, then we need to measure how many candidates are walking out the door at these companies as well. Demand in this sector is so high and supply being stretched to capacity that if there isn’t a focus on retention the company will suffer. Turnover is far more costly to productivity and reputation than any savings realized through automated processes and discounted talent acquisition programs.

I was on a recent call with several other vendors listening to the VMS program manager update us on their client’s 50 openings. The managers were frustrated because they were not seeing any “quality resumes” and now their projects are falling behind and deadlines are being pushed. 

As I listen I ask myself... efficiency at what cost?