Recruitment Consultant - A mass commodity

The recruitment business in India is probably the most commoditized business. Seemingly attractive from outside, one needs to be aware or beware! Typical traps which an outsider looking to set up a recruitment firm does not see:

1. News Reports : The IT/ITES sector is growing at 35% YOY, Infy ramping up, Wipro, TCS, IBM, Accenture - all set to make India their largest Development center globally.
2. Typical HR Manager/Head statements: We have a lot of requirements across the board, why don't you work with our team. There's a lot of money to be made!
3. Friends/Contacts: I can easily put you onto the following companies - you will have your hands full with work.
4. You: I feel that the general quality of consultants in the market is so poor that I can make a difference in the quality of candidates on offer.

Fine this is the Demand Side of the equation and it sure looks like a rosy business. Low investment in infrastructure, immediate business with potential to do significant revenues across a bunch of marquee companies. This is the bait, trust me. You get into it and 'Reality bites'. Some typical frustrations of a recruitment consultancy:

1. Reality #1: Free for All - Clients (many of them) are so hard-pressed for people that they empanel any consultant who can show them a few options. So there is nothing stopping that low-end consultant from competing with your 'differentiated' offering.
2. Reality #2 : From Head to Junior staff - resumes are welcome from all sources, any consultant, no exclusivity even for a 'Senior Mandate'.
3. Reality #3 : Duplication of resumes and 'First Come First Served': This is a serious joke. Having felt great about yourself about having a detailed conversation and even mentored a candidate, you finally in all earnesty, cross your fingers and send the CV to the client. Instant automated response in your mail box: 'Duplicate'. Reaction: It can't be real!
4. Reality #4: Most consultants do not 'waste' time speaking to candidates. 'Shoot at sight' is the mantra regardless of the candidates being senior or junior.
5. Reality #5:Candidate Attitude -Indifferent to who takes my CV as long as I get a call. Inspite of your noble and caring intentions, the candidate asks you to 'please take it forward'. Well thats when you may feel like a 'Resume Postman' with a difference??

The purpose of this is not to dissuade you, but to provoke you to think deeper about your value proposition.

• What is truly unique, apart from the quality of services (after all quality is commoditized as well). Due you possess domain experience, or a capability which goes beyond quality and cannot be replicated by the commodity hungry consultants?
• Can you get 'exclusive' deals from clients?
• Do you have a 'network' beyond the Job Portals?
• What are you trying to achieve?

Think twice before you take the leap. Its easier to dive into the recruitment ocean, but to swim with the hoardes of sharks requires more than quality, courage and a positive attitude,!!

PS: I run a recruitment firm as well. (Beware of well meaning advisors who have survived!)