Bullhorn Customer Spotlight: Lloyd Connect Pioneers Recruitment as a Service (RaaS)
Rapid change within the APAC recruitment industry has encouraged a healthy spirit of entrepreneurialism. More and more agencies are taking change in stride and some are even pioneering new methods of fulfilling the demand for recruitment services. Lloyd Connect is one such example; an agency that took a step back and questioned all assumptions of how recruitment services should be delivered, at Lloyd Connect we connect Employers of Choice with High Performing Talent at every opportunity.
Viewing the industry from this vantage point, ‘Chief Connector’, Jenny Lloyd, and Director – Technology Recruitment David Lloyd, saw a clear opportunity to shake up the traditional recruitment model to provide a more partnership-focused service to clients. Taking the best elements from the software industry where most offerings are now “Everything as a Service / Subscription Economy”, Lloyd Connect’s recruitment as a service (RaaS) business model was born. RaaS does away with large one-off fees, and instead gives clients the option of paying an ongoing monthly fee for long-term recruitment services.
We’ve since caught up with Jenny to find out more about Lloyd Connect and their unique approach. Here’s what she had to say:
- Can you tell us more about RaaS and what it entails?
Recruitment as a Service (RaaS) is actually derived from the software industry’s “Software as a Service” model which has evolved sales and pricing models from capital outright purchases to a monthly subscription basis.
At Lloyd Connect, “Recruitment as a Service” is our tailored services package based on the customer’s requirements (New Hire, Consulting, etc), and all of this is offered on a monthly subscription service.
Today, we virtually have “Everything as a Service” and our experience has taught us that recruitment fits perfectly into this model. Customers are reaping the benefits of a prolonged, relationship-driven approach, with no massive fees for placing individual candidates.
- How’d you come up with the idea?
David Lloyd comes from an IT industry sales background and has seen the benefits of that industry moving from a procurement model to “Software as a Service”. We thought these same benefits could be applied to the world of recruitment.
The high fees of the traditional recruitment model can often be a roadblock to SME’s who take on a recruiter as a business partner. Recruitment as a Service solves this problem, making recruitment expertise more accessible and affordable.
- What would you say are the main benefits of RaaS over a traditional recruitment model?
From a financial perspective, RaaS makes recruitment an operational expense rather than a capital expense. It’s a model that’s far more convenient for cash flow management and budget forecasting. And because you only pay for what you need, it’s more affordable than large one-off fees.
It’s also a true partnership approach with far more security for the client. In traditional recruitment, once a candidate is placed and locked in, the transaction ends. Should that candidate underperform or leave the business, the client can be left high and dry. Our service is ongoing, giving our clients a clearer return on investment.
- How do clients react to the RaaS approach?
Clients can be a little apprehensive signing up to a model that they have never been exposed to before but those that have, have already been seen the benefits to their cash flow management and forecasting and can see the value of the ongoing partnership.
A common question we get is, ‘What happens if we don’t use what we have paid for within 12 months?’. The answer is simple, we roll those recruitment activities into the following year’s subscription. This keeps our clients satisfied and nurtures long-term relationships. It’s really a great situation for all involved.
- What’s different about managing a RaaS business compared to a traditional model?
The main difference is that you’re really committing to a long-term, relationship-driven approach. Although no one likes to admit this, most traditional recruitment agencies take a transactional approach, only really getting involved once there’s a clear opportunity.
RaaS means you’re incentivised for making sure your client is taken care of year-round, not just when there’s something to be gained. It’s a new model and so we’re setting the standard. We need to be really in-tune with our clients business while also managing our own time effectively.
Technology has been our biggest enabler. We’ve spent a great deal of time researching and testing vendors and we’ve now got all the tools we need to make things very efficient. Bullhorn, in particular, has been really powerful for us. It’s not only great for managing candidates, the CRM functionality has been instrumental in nurturing customer relationships.
Learn more about how recruitment agencies of all shapes and sizes are using Bullhorn to great success.