Edition 483 – Orbit Recruitment

A search on Google suggests that 1 in 3 jobs are never publicly advertised in Australia. Another search suggests that up to 80% of executive positions are also not publicly advertised. The term that seems to be bandied about for this, is “the hidden job market”.

I prefer to call the term, “Orbit Recruitment”. You have people that are in your inner or your outer orbit, that you either know closely, or someone you trust knows, that you determine might be a good fit for your business.

In amongst the wide variety of clients that we’ve worked with over the years, we’ve observed:

1. The close family friend that has been recruited to take on the role of General Manager or CEO inside a Family Business, and lead it to great success – on multiple occasions, inside of different businesses.
2. Relatives of staff members, whose attitude and commitment to their craft you’ve so admired, join the business and invariably, have the same approach to their work as their sibling, parent, or adult child.
3. Business associates, who you have come across over the years, and spent enough time with at trade events, or in conversations when you’re each helping a client, to understand that they may well be the right fit for your business.
4. Members of the same local sporting club, join the workforce of a local family business and help to contribute to the growth and success of that business.

If I was to detail why I’ve observed so much recruitment take place, in this way, over the years, I’d boil it down to four things:

1. The relationship is a known quantity, both ways – meaning that I understand you, and you understand me, and believe we know enough about each other, to enter into a closer relationship.
2. You have alignment on values – otherwise, you’d most likely not be in a relationship with each other in the first place.
3. As an employer, I’ve already observed how you function in a given situation, and thus had the advantage of checking out your level of commitment. Community sport participation, for example, is great for studying levels of trust – if I know you have my back on the field, maybe you’ll be the same in our business.
4. Most small and family businesses are wanting to expedite the onboarding process, mainly as a result of the fact that there’s a hole to be filled and time is of the essence. As the focus is on the role and how the candidate fits into that role, one of the greatest impediments to employment success, being a strong working relationship between employer and employee, has already been established – so, you have a head start.

I’d rate the success of orbit recruitment at around 75%, which is incredibly high when, anecdotally, based on my own experience as an employer, and in the work we’ve undertaken with our clients, I’d rate external recruitment as a 33% success – with most people not striking it lucky, with the right person, in the right role, at the right time, until the third candidate has eventually filled the role.

There are downsides, of course. One of which is that if there is already in place, a close personal relationship between the employer and the employee, then you need to develop some techniques where you continue to foster that relationship outside the work environment, that means you’re not talking “shop” at social events. Easy to say – hard to do.

On the whole, I’m of the belief that orbit recruitment is more widespread, and more successful, than the recruitment agencies, or the online employment portals, would have you otherwise believe.

This Week’s Tip

“Look at the cost differential – a 75% success rate on known candidates, vs. a 33% success rate,
when you’ve had to pay for recruitment. Makes you think, doesn’t it?”