In my last article, I wrote about the modern company which effectively operates like a Shamrock. This means that core services are delivered by core associates in the main part of the company. The second leaf involves other services such as legal, tax, IT, even janitorial, waste management and several other services that are “outsourced” as contracts. The third leaf is the “just in time” segment of the operation where services are needed for special projects and may involve contracted staffing and outsourced recruiting or training.

For 2009 outside recruiting may take a back seat as some organizations “rightsize” to face economic pressures. Using outsourced recruiting can make economic sense. There are three major types of firms servicing the South Florida healthcare market. Retained firms still specialize in senior level positions. Fees are paid upfront, during the search and when the new hire starts. Contingency firms are very cost efficient in that fees are only paid upon the start of a new hire. Essentially, clients get free looks at talent, without up front costs. The third type of firm is an “engaged” firm. This means that a small monthly “engagement” fee or retainer is paid and then a reduced fee for each placement. The advantage of this type of agreement is for budget purposes and the fact that you are “top of mind” for the engaged firm if they want to ensure a continuation of the engagement. In addition, executive search firms offer replacement guarantees, something which is not possible with in-house staff.

While a typical in-house recruiter has access to one or two job boards and must depend on responses to ads, a good Executive Search firm may have access to 5 or more boards and in our case have direct recruiting and referral sources far deeper than the average in-house recruiter can possibly have. In addition, the firm must hustle to source, recruit and present the top candidates for a given search. And in south Florida, given restrictions and license issues, an outside firm manages the process effectively to ensure results.

So when faced with business uncertainty, and economic pressures, using outsourced “just in time” Executive Search firms makes sense.