Innovative new Revenue Models for Recruiting Firms
Currently revenue generation models in Recruiting are very limited in India. Staffing, Placement & Head hunting are the only income for more than 95% of the recruiting firms in India.
Why not try some of the following revenue options. Few of these Opportunities are not currently being practiced & which could turn to be very potential:
Recruiter Branding: Handling HR and Recruitment Branding assignment for clients.
Job Branding: Branding Jobs is currently unheard of in Indian market. In most of the Companies, Requirement of people for a particular Job is perennial. They sure need to brand this Job to ensure maximum interest shown by Candidates. In fact, just writing a proper Job description will yield in very good response and a firm can thrive on it.
Interview Management: Many times due to improper management of Interview and Candidates attending the Interview, there is a ill feeling among Candidates & at times even among the Interviewers. Interview Management requires high quality professionals. Like DJ’s for events, Interviews also needs IJ’s (Interview Jockeys) who will ensure satisfaction among all stake holders. And this will enhance Brand image of the company and reduce Offer rejection to a certain extent.
Campus Recruitment: I don’t think I have to explain much about it!
Response Management: Corporate houses receive resume through multiple sources and have a whole warehouse of Resume (I mean electronic warehouse). If you could help them manage these responses and help in putting these resume into a structured database, you have a very potential revenue opportunity. Again, Response management for advertisements, events in ‘on demand’ model will also prove to be profitable.
Written test Management: Today, most of the companies recruiting entry and junior staff ask them to take up written test. If you are able to manage this, you are in for Good revenue.
Recruitment Process Outsourcing: RPO seems to be the next big thing after BPO. So start planning your RPO & grab this opportunity. RPO helps you receive constant revenue through out the year.
Turnkey Recruiting: Again, this is a good opportunity. Rather than sticking on at 8.33% or above per candidate, look at the assignment with a different perspective. See how much it will cost to handle a turnkey assignment, buffer it with your profit margin & get going. At times, I have seen that a flat Rs. 2 lakh contract for hiring 40 people proved to be much more cheaper than doing a single placement at 8.33%
There are many more opportunities. Pl let me know if you are having a different revenue opportunity which is not given here.
Wednesday, June 17, 2009
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11 comments:
Shankar, Job Branding is a very useful thing. Writing an effective JD can make you scale new heights. Response Management and RPO are the other two critical things in recruitment and people do rarely know about them. Zyoin.com (www.zyoin.com) is trying to pioneer these two concepts. Turnkey Recruitment is also useful. Good work, Shankar! Do add some more useful posts.
Hey Great man, this one is cool, I'd love to be a IJ... :)
Anunav,
Thanks for the comment. RPO is surely going to be the next big thing in recruitment.
Shankar
Yes Franklin, it is an Interesting assignment :)
Shankar
Thanks indeed a well written article.I feel very happy to see that Interview management /RPO and writing Job description is one of our key drivers of business .
Further we have niched ourselves to one speciality.This has been an edge .So we do not do ALL recruitments but specialize in one.Our branding guidelines also focuses on the same.
Hope this helps
regards
nirupama
Excellent points, Shankar!
However, I feel there ought to be money made-in the basic business of recruiting itself.A contingency recruiter today finds 85% of his/her time down the drain-as quite often they only supplement the 'internal recruiters' efforts Free of Charge!
Imagine "complementing" the recruiting efforts of a client.
Imagine being used for 'consultative' transactions instead of being the 'postman who pressed the buzzer first among 67 other recruiters in the community'!
Imagine being paid a token advance as commitment for the time/IP/ effort being put!!
There is enough money for the asking -sticking to the basics right.
Yes, all the above would need the 'third party recruiter' to brand themselves, by spending time to understand client's business,by investing in systems and processes, and have a proven track record in delivery, ....and be counted as a professional!!
Hi Nirupama,
Thanks for the comment. Yes, when you niche in one segment, you master it & your delivery is much better - both in quality and quantity (and on time too)
- All the best.
And please do put in your experience in Interview management here which will be very useful for our readers.
Thanks again.
Regards,
Shankar
Dear Mr Menon,
You are absolutely correct. The bulk revenue in Recruitment will be directed to direct sourcing and recruitment.
These are ways to enhance your revenue with existing clients. And ofcourse also an opportunity for new entrants to create a niche for themselves.
Facilitating recruitment is also now a days becoming serious business. For example - cost incurred in travelling, hotel and accomodation etc are very high & cannot be wished off. They are part and parcel of Recruitment.
And when we can carve a part of the various activities within the recruitment process and create a business opportunity, I think we will succeed.
Thanks for your comment.
A very interesting article and discussion.
RPO and other services such as ad branding and employer branding are very important. We find it is difficult to get companies to change the way they work. It is in their interest to have agencies working on contingency: they get useful market information and it doesn't necessarily cost them anything. How do you go about getting companies to buy into these concepts?
The vehicle for attraction,motvation and retention in any organisation is how well the job is defined..and sadly most of the HR professionals are loath to spend adequate time on this subject.Consequently you have major issues of attrition,employee dissatisfaction,poor productivity and the like..Consultants make hay on these assignments which should rightfully be done by internal HR.
Amal K Das CHR Global
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