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By David Alonso • July 7, 2017

Pros and Cons: The 360 and the 180 Business Models of Recruiting

In order to cut costs, become more time effective and adapt to a more tech driven business environment, more recruiting businesses are turning towards the 180 business model.  In fields like IT, Engineering, and Oil and Gas staffing, in cities across the globe, it has become less and less realistic to run a business that follows the 360 model.  Although the 360 model of recruiting has always remained the “proper,” way to recruit, there are many pros to examining the 180 model.  Here we’ve outlined the pros and cons of both the 360 and the 180 business models of recruiting.

Let’s start with the 360 model, because in the past that model has always been the most utilized.  There are many pros to this system including control.  This model allows the recruiter to control all aspects of  the recruitment process and allows the relationships between client, candidate and recruiter to remain solid.  The 360 model also allows the recruiter to build and gain expertise in their specific field, allowing the recruiter to know their product inside and out and then be able to consult more accurately.  Another pro is that it limits in human error; because your recruiters have become experts through driving the entire recruitment process this limits the time spent on education and directing a delivery team.  The 360 model also allows a recruiter to build up trust with business owners.  The relationship is especially important and seeing the recruitment process all the way through, allows recruiters the ability to develop and foster relationships with large and small business owners alike.  The 360 model also allows for more variety within their day to day tasks, as no two days will ever be the same.  There are a lot of things that make the 360 recruitment process appealing, but there are also some cons.

Some of the cons or challenges of working under a 360 model include time management.  It is possible to manage your time, but it is definitely a challenge and oftentimes recruiters end up working extra long hours in order to please both their clients and candidates.  Another challenge associated with this model is the idea of sales skills v. administrative skills.  Typically recruiters are better at one or the other and sometimes this means that quality of service or attention to detail can be affected.  Finally, training; training new recruiters on the 360 model can be a lot more challenging and time consuming than training a new recruiter on a 180 model.  Which leads us to our pros surrounding the 180 business model.

There are a lot of pros to running a 180 recruitment model. First off, running a 180 business model allows you to reach many candidates and clients at one time. With a team behind you doing lots of the bulk interviewing for certain types of skill sets, it makes it easier for the recruiter to focus on less administrative tasks.  This process then allows you to better understand your client’s needs, by focusing more time on the relationship and again, less on the tediousness of data and research.  The 180 model also reduces costs for recruitment firms.  By having an account manager to manage more junior recruiters, this allows recruitment companies to pay less to junior recruiters and more to account managers.  This model also allows recruiting companies to hire people who have strengths in different fields for instance, salespeople who develop the relationships with clients and candidates and recruiters who act as non sales focused administrators. What a lot of companies have started doing is outsourcing the delivery work of job posting and seeking out resumes online through an online recruitment software or through job sites.

There are also some major cons to this recruitment model though, first off, is that without strong sales professionals, there isn’t much room for results. Along with this concern is also that market knowledge can be diminished.  Sales people can become detached from the process and the product if they are not continuously involved. This can also lead to communication issues between the recruiter and the sales person, it is extremely important that if using this process that communication is up to par and that organization is upkept in order to have a successful business.

Regardless of which business model you choose to operate by, having a CRM software or an ATS recruitment software that allows your teams to communicate and operate in an organizational manner.  Choosing a top recruiting software can be a challenge so TrackerRMS makes it easy.  By scheduling a live demo or exploring our website, you can see how our recruitment software can help your recruiting firm can help your business remain successful. Contact TrackerRMS today!

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