The recruiting process can easily be outsourced (there are approximately 40,000 recruiting agencies in the U.S. alone). If done in-house, it is best to have one dedicated individual to be the point person. This person needs to be a real people-person, highly organized and persistent. A great deal of time can be wasted if the recruiting process is not clearly defined. A good boss understands the labor regulations that apply to hiring.
To find a reputable recruiter, ask around and try to get a referral. Recruiters charge up to 35% of the candidate’s first year’s compensation (including bonuses). For mid-level management and below positions, 20-25% of the base salary is reasonable. The recession has forced many recruiters to lower fees by as low as 10%. There are two types of recruiting engagements: contingency (payment only if the position is filled) and retainer (payment even if the position is not filled, or filled by another means). Except for executive level or highly technical positions, contingency is usually the best way to go. A good boss reads the fine print on the recruiting contract and negotiates the rates.
- For a quick overview of the recruiting process.
- How to recruit top talent (Entrepreneur).
- Ten ideas for recruiting the right talent (About.com/HR).