Sourcing and recruiting talent is one of those jobs where it is not always evident whether it makes sense to get help from another firm or if it’s best to do it yourself.
Some tasks like accounting require specialized knowledge that is separate from the essential makeup of most businesses, so it makes sense to ask for help from specialized firms. But hiring is a crucial function: your team members makes your company. There is no way you can outsource it all.
There are two core jobs in recruiting you can’t outsource: validating and closing the candidate. Only you should decide if someone is the right match for your organization and the role you are hiring for. And if you really like a candidate, it is only you who can get them over the finish line, especially if the person has more than one option.
Yet, sourcing and recruiting is not just one big job but many different jobs combined, starting with finding people and ending in signing new people to join your team. Should you get outside help for some of the steps involved in this multi-step process? Absolutely yes.
Here again, there are two jobs where you can get help – finding talent and filtering people to ensure they have the skills and aligned goals to be part of your teams.
We breakdown these jobs in the following way:
Sourcing: The first step in the funnel is finding people who might be a good fit for the open role at your company. Looking for talent on professional networks and the open internet is time-consuming and often requires paying premium accounts to access the right search and contacting tools. The hit rate at the top of the funnel is low, so the yield per hour spent is very low. Having firms solely focused on this, using premium tools on your behalf, makes a ton of sense.
Recruiting coordinator: This is the process of coordinating all the interviews and communications between the company and the candidate. This part of the experience can energize candidates if done well and deters many of them done poorly. If you cannot commit the time to do an excellent job, get someone involved who can. On top of the impression it leaves candidates, you may lose good people by moving slowly or affect your ability to build and sell by introducing unnecessary delays in your hiring process.
Interviewing: typically, the sourcing team does a first interview pass. They can check communications skills and high-level affinities with the mission and vision of your company. That’s not enough. Ideally, you can also get help on the first technical interview, the one you already do, to decide if it’s worth going deeper or not. This interview is more a filter than a validation, often with a materially lower hit rate than anything else further down in the hiring funnel. If you can get the right team to conduct the first technical interview, you can get a lot of leverage in your recruiting process.
Matilda’s business model maps perfectly to this model: we can do just sourcing, or just recruiting, or just running the first technical interview, or a combination of all. You pick what you need.
There are many jobs involved in hiring a person, and for each step, there are different ways to achieve the same goal. At any given time, different companies might need help with different parts of the entire process. When we started Matilda, we knew we needed to create a business model aligned with this reality.
Even if these jobs are done well, the company may or may not hire the people they interview. That’s why most firms charge on a performance basis: companies only pay when they actually make a hire. To make this work, companies often charge a retainer to ensure interest and seriousness of the job.
In this, Matilda is also a bit different. We have worked on pricing to set up a model that works for our companies. It is very simple: No retainer and allowing up to a full 10-month at-risk placement (meaning we don’t charge our full fee until a total of 10 months have passed since we placed the talent).
To learn more about our business model and pricing, check out: