Specialty recruiting firms sprouting, profiting
Specialty recruiting firms are sprouting and profiting from a large talent pool, subdued human resources departments, demanding staffing needs, and developing industries.
“Niche recruiting thrives when there”™s a disproportionate premium on time,” said Scott Witkin, founder and president of Elevation Search in Norwalk. Elevation Search was founded earlier this year and specializes in recruiting mid- to senior-level private bankers and brokers at banks in the Americas and Europe.
Since the recession”™s initial rounds of mid-level layoffs there have been resounding cries of talent-in-the-waters. The flooded job market has encouraged the growth and development of specialized agencies who know industries from the inside.
“HR departments have been cut to the bone,” said Chris Russell, founder and president of AllCountyJobs.com, the foundation of a series of job board websites, and related blogs and podcasts, headquartered in Norwalk. “It”™s natural that there are outside companies to fill the void.”
Kate Post, chief talent officer and president of Forest Solutions Group in New York City has evolved her business over time, from general administrative support to companywide talent solutions; essentially having a group of bundled specialized arms for the majority of business departments.
“There are more and more specialized staffing firms evolving because corporate HR cannot possibly fill the need,” Post said.
She said one of the most difficult conundrums in regards to a diminishing in-house HR presence is how to hire human resource staffers.
“Many companies have thrown the baby out with the bathwater,” Post said. “In the 33 years I”™ve been in the industry it was business as usual for 25 of them; I”™ve seen the most change in the last eight years. In 10 years we won”™t even recognize it.”
Witkin said the first industries with buds appearing in the coming spring will be legal, specialized finance, medical and accounting. Russell said specialty recruiting will also continue to flourish in healthcare, information technology, and up-and-coming industries like alternative energy or “green jobs.”
“I think each industry has specific niches also,” Russell said. “For example IT is very broad, but companies like Onward Search in Wilton specialize in just interactive, web, and mobile application developers.”
David Marceau, a former IT consultant, began his firm Ridgefield One in Ridgefield after recognizing a need in his own industry. His firm now specializes in IT as well as creative media staffing, which was often found to be part of an initial IT need.
Marceau said it can be especially hard in particular specialties for general human resource staffs or general staffing agencies to understand the nuances of a particular area of expertise.
“A lot of time in IT seeing the ability to adapt is important,” Marceau said. “Being able to find the answers that they don”™t know is a significant value. A lot of companies reach out to us because they know we know how to find and qualify the right people for the position they”™re trying to fill; that”™s what does a company some good.”
Witkin said when it becomes difficult in the staffing market to match the proper opportunities with the proper candidates, niche recruiting firms develop because of their ability to navigate an efficient, time-saving path toward talent.
David Lewis, president and founder of Operations Inc. in Stamford, whose company typically does work placing individuals in ”˜flexible contracts”™ of less than 40-hour weeks, what he calls an ”˜odd shaped situation,”™ said specialty recruiters are, “perfect for finding the square peg for the square hole.”
“It is fit-the-need,” Lewis said. “If you know what you need and if they are good, they will find it.”
Lewis said even in industries that are now doing well companies are still shell-shocked, and finding it hard to build up the confidence ”“ between the costs, time and lack of certitude ”“ to make a major fulltime hire.
“These firms”™ expertise allows companies the confidence to justify a hire,” Lewis said.
Witkin said specialized recruiting has always been present but, between up and down market periods, can grow in the market where generalist are struggling.
“Anyone can hang a shingle and say they are a niche recruiter, it”™s the firm that speaks its clients”™ language and understands culture, reputation and confidentiality that thrives,” Witkin said. “As long as generalists under serve the specialized market, at no fault of their own, specialized firms will always be in demand.”
Russell said when a hot market pops up, there will always be firms that take advantage of the trend.
“A more focused recruiting firm can really build relationships with the right candidate,” Russell said.
Witkin said the good specialized firms eat, breathe and live within their niche area and sell that knowledge and expertise as a premium versus generalized firms. He said many founders and staff members of specialized firms have a history in their particular staffing expertise.
“Surviving as a niche agency also requires a higher level of subject matter expertise, ability to stomach up-down cycles and a focus on a candidate pool that require finesse, experience and a ”˜nose for the deal,”™ ” Witkin said.
He said playing the agent to a stale candidate can be hard even in hot industries and recovering times.
“Unemployed individuals who have not used their time on the bench wisely, have clearly outdated skill sets, and have shown no desire in previous positions to broaden their skill sets, are the toughest to place,” Witkin said.
Witkin called inflexibility and focus placed on skill sets that are now unnecessary the true enemies of the unemployed.