Advisory support in personnel search
Vacancies, a lack of applicants, and financial losses: Those who fail to compete for talent are putting their company’s continued existence at risk. To ensure nothing is left to chance, especially when searching for specialists and managers, it can be worthwhile to seek professional support – in the form of a recruitment consultancy.
But what exactly does a personnel consultancy do, and how does it differ from other forms of recruiting? This article will tell you everything you need to know about personnel consultancy.
Definition: Personnel consulting in Germany
The name says it all: HR consultancies provide advice, especially regarding human resources. One of the most important consulting services is support in finding suitable candidates for open positions. Companies often outsource the search for specialists and managers, because successful placement is particularly important in this area.
However, the word “consulting” encompasses more than just recruitment: HR consultancies provide holistic support to companies with recruitment issues, including topics such as onboarding and corporate communications. HR consultancies thus combine aspects of traditional management consulting with the search for personnel. This distinguishes them, in particular, from permanent placement agencies.
The difference between personnel consulting and recruitment
The two terms are often used synonymously, but while HR consulting and recruitment have a lot in common, there are a few key differences. Other recruiting terms frequently used in this context include headhunter, direct search, and executive search, each of which also refers to specific recruiting aspects. We’ll bring order to the chaos of terms:
The main difference between HR consulting and recruitment is that it is a consultancy-intensive service. While the work of a recruitment agency primarily revolves around the actual recruitment of personnel, HR consultancies’ work is only one part of a broader package. And even the search for suitable candidates is usually somewhat more extensive with HR consultancies—the costs and fee structures differ accordingly.
Search effort: HR consulting vs. recruitment agency
A recruitment consultancy goes all out: using complex and time-consuming search methods, the best talents for each open position must be identified. One of the most important tools in a recruitment consultant’s repertoire is direct search, i.e., the careful search for and approaching of specific talents within a predefined target group.
The focus of recruitment is on fast and efficient personnel recruitment: Recruiters often use database searches to find suitable profiles for a vacant position.
Costs & Fee Structure: HR Consulting vs. Recruitment
HR consultancies offer a much broader range of services than recruitment agencies, which is also reflected in their fee structure. Recruitment agencies are essentially brokerage services, which is why payment is only due (and often only) once a placement has been made.
A personnel consultancy, on the other hand, is more complex and is therefore remunerated regardless of success, often according to an installment model – for example, the one-third model: one-third at the start of the activity, one-third after the presentation of the first candidates, one-third after successful placement.
The tasks of a personnel consultancy
Executive search firms are truly all-round recruiting experts, providing companies with comprehensive support in their talent search and everything that goes with it. However, the boundaries between executive search and placement are fluid, and not every executive search firm offers the same services. Some companies specialize in specific search methods, such as social media recruiting, or in specific company sizes, such as medium-sized businesses.
You can expect the following tasks and services from a personnel consultancy:
- Direct approach:
Direct approach refers to the systematic search, selection, and approach of talented individuals. Instead of posting a job advertisement and hoping for suitable applicants to respond, potential applicants are hand-picked and contacted with sensitivity and discretion on behalf of the recruiting company. - Executive Search:
When positions to be filled through direct recruitment involve key or leadership roles, it is also referred to as executive search. Recruiters who specialize in this area are also known as headhunters. - Social Media Recruiting:
The overwhelming majority of talented individuals today also use social networks to search for jobs. In addition, there is a large passive talent market – people with social media profiles who are not currently looking for a job but are still accessible to recruiters. With professional social media recruiting, companies can therefore dramatically increase their reach. - Employer Branding
From your careers website to your Instagram profile: Your employer brand is the sum of the impressions your company makes on potential applicants. It determines your reputation as an employer. Even though an employer brand isn’t created on the drawing board but is influenced by many factors, it can be actively managed to a certain extent. With employer branding, HR consultancies can help you strengthen your employer brand to attract better talent in the long term. - Onboarding
The candidate experience ends with the signing of the contract – but the employee experience is just beginning. A recruitment consultancy supports companies even after the hiring of new employees to make their entry into everyday company life as smooth as possible and to lay the foundation for long-term employment. - Project and Process Management
Every talent search is a project, and projects stand or fall with their organization. HR consultants help companies optimize their recruiting organization, from best practices for job postings to applicant management. Thus, HR consultancies help companies achieve long-term recruiting success even without external assistance.
Human resources consulting is a broad field, and each service provider has its own areas of expertise. Depending on which recruiting aspects you need help with, you should look for a human resources consultancy that specializes in your industry, size, and requirements.
Riverstate provides consulting services along the entire recruiting process chain – from basic recruitment to direct recruitment, including social media recruiting and executive search for specialists and managers, to employer branding and project management. Contact us now for a free, no-obligation assessment of your situation.
HR Consulting – Frequently Asked Questions
A personnel consultancy is a company that supports other companies in their search for staff and provides additional consulting services in the area of recruiting. Compared to a permanent placement agency, the range of services offered by a personnel consultancy is more comprehensive: personnel consultancies use more complex search methods and also support companies in aspects such as project management and employer branding.
In principle, headhunters and HR consultants pursue the same goal – filling open positions in a client company – but the term ‘headhunter’ is much narrower: it is a HR consultant who supports companies primarily in the search for executives and filling particularly important positions.
Using a recruitment consultancy has many advantages: It increases your reach in the search for talent and simultaneously relieves the burden on your HR department (or the people in your company who handle recruitment). This allows you to find better talent for your company faster and with less effort. By supporting you with employer branding, recruitment consultancies also help you make your company more attractive to applicants in the long term.
Choosing the right recruitment agency depends largely on your needs. These include the salary and experience level of the talent you’re seeking: Do you need low-skilled personnel, highly trained specialists, or executive searches? Recruitment agencies often focus on one or more of these categories. They also specialize in specific industries and/or regions. You can use a search engine to find recruitment agencies with the right focus. You may also find recommendations for a good recruitment agency within your network.
The recruitment agency will tell you exactly what you should prepare before the first meeting. It’s especially important for the initial meeting that you clearly communicate your company’s requirements and challenges, as well as the criteria you expect from potential candidates. This is the only way the recruitment agency can create the most accurate candidate profile possible, which the recruiters will use to start their search.
There are no fundamental disadvantages to being placed through a recruitment agency. However, as an applicant, you have little control over whether you are approached by a recruitment agency—and for which role.
You can trust a reputable recruitment agency: After all, it’s in their interest to match companies and employees who are a perfect fit. Of course, there are also dubious companies that don’t meet the industry’s high standards. Therefore, you should choose a recruitment agency carefully and not blindly trust any service provider.
You negotiate your salary with the company, not the recruitment agency. However, the recruitment agency can act as a mediator: They can help you formulate realistic salary expectations. To achieve this, you should communicate your salary expectations openly from the outset—after all, the recruitment agency knows the target company and knows what salary ranges are likely to be.
You can protect yourself from dubious offers by being selective: Do your research before working with a recruitment agency and check their references and testimonials. You can also assess a recruitment agency’s expertise by asking pointed questions – a good recruitment agency should be well-versed in your industry and/or region. Furthermore, a reputable recruitment agency will never try to pressure you into a decision you aren’t 100% confident about.
The services offered by a human resources consultancy are diverse. The primary focus, of course, is recruiting support: A human resources consultancy helps companies fill vacancies quickly. In addition, a human resources consultancy also provides support in areas such as employer branding and project management, helping companies better position themselves as employers and optimize processes within the company.
