What can recruiters learn from Silicon Valley?

Adrian Kinnersley

In a tough market, recruitment companies can learn a lot from the go-getting, start-up culture of Silicon Valley, says Adrian Kinnersley

I strongly believe that recruiters will play a key role in our corporate future. But things are changing and, in a competitive market, recruitment companies need to be in a strong competitive position – they need to be the best.

I believe much can be learnt from US technology hub Silicon Valley. When we first set up our business, our aim was to become a globally recognised brand that created wealth for everyone who contributed to the company’s success. I recently read a book that clearly summarised how this type of approach is different to that of traditional recruiters: Secrets of Silicon Valley: What Everyone Else Can Learn from the Innovation Capital of the World by Deborah Perry Piscione.

The book outlines the 5 key common principles that contribute to the mindset and the success of Silicon Valley companies. They are:

Value people – they are team players and all employees should all be able to gain an equity ownership in the business.

Value ideas  – ideas are the prized commodity in Silicon Valley.

Take risks and accept failure – this is part of the human experience that makes you smarter as you learn from your mistakes.

Innovate – letting go of old ideas and reaching out to your customers for feedback is key.

Think of yourself as a start-up – they are lean, hungry and open, with no legacy to tie them down.

If we think of the recruitment sector as a whole, it probably doesn’t apply these principles, at least not all of them. But if it did, would the perception of the industry, as well as individual company performance, be any different? Let’s look at how can you apply each of these principles one to your recruitment consultancy.

First, valuing people. It’s often said in recruitment that ‘people are our biggest asset’, but in practice, very few businesses really acknowledge this. When it comes to motivating and retaining your top talent, all employees should be made aware of how they can progress throughout the company, allowing them to have clear goals to work towards. On top of this, agencies need to make an effort to introduce employee benefits, and compensation schemes should be consistent – even across international geographies. Share schemes are a great way of encouraging the right behaviours as they allow staff to truly see the value of their contribution.

Secondly, ideas. The recruitment sector is rapidly evolving, so we are faced with challenges. And, in a competitive market, it’s important to bring in fresh ideas to really stay ahead of the curve. This involves listening to all employees and not just those in the boardroom, and there needs to be a clear communication structure in place throughout the company.

What about taking risks?  No one wants to fail, but in order to remain successful in the long term, you have to be willing to take chances and accept that they won’t always work. Making mistakes is inevitable. But if you aren’t able to try new things and implement change, you’ll struggle to compete against those recruiters who are able to take risks. At Twenty, we knew that if we had any chance of achieving our goal of becoming a globally recognised brand, we had to venture into America.  There aren’t many UK companies that have thrived across the pond, but as is reflected in our company values, we believe that life’s too short not to try. And for us it’s really paid off.

As recruitment evolves, it’s important to keep ahead of the changes to meet new demands, and this is where innovation comes in. For instance, you need to be able to offer clients and candidates deep industry knowledge, while at the same time be a specialist in a vertical market. You should also be using social media not only to source talent, but to create communities of candidates and clients that you interact with, regardless of whether they are hiring or looking for work. Without a long-term approach, your company’s in danger of being left behind.

Finally, thinking of yourself as a start-up is key. A start-up treats its first client like a king, always going the extra mile for them. It also takes care of a great applicant in the same way because their candidate experience is hugely important in terms of recommendations. A start-up team tends to work harder and longer for less because they believe in the vision of the business. So, if you can have the overall approach of a newly created business, no matter what size you become, you have a magic formula for success.

It’s by no means easy to follow these points, and to be truly successful, your clients need to share the same vision and strive for perfection. And it can be just as difficult to find recruiters to fit in with the culture of your company. We’re in a generation where the vast majority of recruiters want to know ‘what’s in it for them right now’ rather than ‘how do we build a great company’.

And this is where the world of recruitment and Silicon Valley diverge. Today, the brightest minds tend to strive towards becoming the next tech billionaire and can tackle any obstacles they may face because they have a long-term goal. Recruitment companies are then left fishing from the remaining pool of talent, trying to convince them that becoming ‘perfect’ recruiters is the path to their fortune.  I guarantee we’ll get a lot closer to the vision than most because we get up every morning believing it’s possible. Can you say the same in your company?

Adrian Kinnersley is managing director of Twenty Recruitment. You can read his blog here.