Hmmm....I always forget to ask but I often get the question from HR as to whether or not I am an independent....or with a firm.

I think there are two reasons for this:

1. They are looking to beat me down on my fees if my perceived overhead is less.
2. They don't believe that an independent can find people for them like a firm with many people can.

As to the first point, a company hires a recruiter to use his expertise to find good people. This expertise can be technical knowledge of the industry but it can also be the network or connections and individual has. In my opinion, this is far more valuable than technical knowledge. Your best employees are those you find on the passive market who were introduced by a good friend, or a friend of a friend. These relationships many times take years to culminate into a useful business enterprise.

THAT is the real value in a recruiter and really what companies are paying for.

As to the second point, there is a lot to be said here.

First of all many "firms" are quite small and really do not have that much man power.

Secondly, any recruiter good enough to go out on their own is probably one of the best, if not THE best, recruiter/account manager a firm has, or else they would not have the confidence to leave the security of a firm and venture out on their own. How many independents do you really think are "On Their Own"? Probably none.

Nobody leaves a firm without tons of connections and backup. Who are these connections? Well, other top notch recruiters who have gone out on their own. So in reality, if an independent recruiter has 10 other independents they are working with, then in reality that recruiter has a far higher ratio of job order/recruiter than any company in existence. The large firms are keeping everything internal and will not utilize the vast knowledge base of independent recruiters in the market. "Share" is not necessarily a word in their company codex.

Another thing that many companies fail to recognize is the priority list of job requisitions. What job orders to firms try to fill, regardless of size?...the easiest, most lucrative ones. I know, I know. They all say, "we want to be your partner", but the unsaid caveat is...."if it makes business sense for us."

Nobody wants to get into a bad business relationship...or implies that you should, but when a firm gives their word that they will do everything in their power to find a candidate, a company should be able to expect full effort...regardless of degree of difficulty.

Do we all know what a "split" is? Basically, it is the percentage of fee that is earned. If you have an account manager and a recruiter, then each would get 50%. The more levels of people, the more the pie is split.

In reality, firms (especially large ones) work on a split, of a split, of a split....and maybe of another split, and that is AFTER the company takes their 50% for overhead etc... They have so many levels of people in the organization who must be compensated. This is not a great motivator, so the business becomes quite mercenary....forget what the account manager or VP says about partnerships, the folks behind them are driving the business and finding candidates. They do not have the face the customer and will work where the money is.

An independent working with other independents will at minimum get 50% of the deal. How is that for motivation? He/she may have fewer job orders, but they are highly motivated to find the right candidate.

I think when extremely high volume of low to mid level talent is needed, then the larger firms might be more of a possibility, but don't overlook the folks who really need and truly value the relationship they have with you. It could be a beautiful thing for the next 20 years.

- David