Could You Be Losing Thousands of Dollars in Placement Fees?
Last week we had the pleasure of welcoming two very special guests from HIRABL to our JobAdder HQ, and boy did we pick up some funny catchphrases.
Returning home to San Francisco from a whirlwind trip through London and Dubai, HIRABL Co-founder & CRO Jon Guidi and Director of Client Services Cale Donovan squeezed in a Sydney stop and hosted a presentation at the JobAdder offices about their buzzworthy business HIRABL.
Which leads us to the funny catchphrases. “Placements in the basement” and “backdoor hires” are two of our favourite terms that were discussed and for readers who are unfamiliar with them, they’re terms used to describe when a candidate is placed in a role in a way that bypasses the recruiter, along with the placement fees the recruiter is entitled to for the hire.
A well-timed observation that these “backdoor hires” happen frequently and are responsible for recruiters losing money was the founding principle of HIRABL. The company first started out as ‘Fee Catcher’ and within a short period of time, had recovered around $71,000 in placement fees without even really looking for them.
If you’re reading this and wondering whether your business is susceptible to losing placement fees at the hand of “backdoor hires,” you should be, HIRABL’s insight is a real eye-opener about where money can be drained from a recruitment business quite easily if left unnoticed. HIRABL steps in and uses publicly available data to identify candidate and hiring manager movements and promotions, as well as to “supplement the value of a business’ CRM.”
HIRABL reports on movements like whether a job seeker has been successfully placed in a role that a recruiter put them forward for, or whether a candidate has been promoted from a position that a recruiter placed them in that may therefore need to be backfilled.
As Jon puts it, “recruitment is a human-to-human business and there is an inevitable amount of data loss involved with what we do. HIRABL has been created to minimise this loss, or ‘leakage,’ and to catch the data that falls through the cracks during the recruitment process.”
Jon goes on to emphasise the importance of a unified, systematic approach to the processes within every recruitment business in order to counter this problem. “Success in recruitment is often closely correlated with activity, meaning that successful recruiters are often interacting with a large volume of candidates and clients. That being said, the importance of being systemised cannot be overstated. Establishing systems and process within a business, such as marketing automation and proper use of a CRM system, make it possible to interact with thousands of people per year and not be expected to remember or account for each interaction through memory, which is unreliable.”
So what’s the most valuable piece of advice Jon has for recruiters?
It has to do with being aware of the fact that when mistakes happen, they’re often made unintentionally. Simple record data loss and staff turnover (of both in-house hiring managers and agency recruiters) are factors that contribute to lost placement fees. If a candidate is placed in a role some 6 months after a recruiter nominates them for it, chances are that there may be a new or different hiring manager in charge by that time who doesn’t have a record of the recruiter and is unaware of the part they played in the equation.
Jon explains, “the most valuable piece of advice I could give to recruiters is to not make assumptions. I talk to recruiters and people who own recruiting firms all day long and I hear things like ‘we have GREAT relationships with our clients and we would know if they hired our candidate.’ What I’ve learned is that no matter how great those relationships are, it doesn’t mean that things can’t still fall through the cracks unintentionally.”
Overall, our verdict is that HIRABL is a platform that fills an important niche in the recruitment industry. No recruiter is able to track every candidate they’ve ever placed like a hawk, and from where we sit, it would be worth giving HIRABL a whirl!