Recruitment Agencies Bypassed by Social Networks

Direct employee relationships are threatening the supremacy of recruitment agencies, according to the first global “Digital Generation Survey.” The survey has been created by workplace experts Career Innovation (Ci) in partnership with AIESEC, a student-run organization.

“The survey reveals the astonishing effectiveness of personal referrals in recruitment,” commented Jonathan Winter of Career Innovation. “When we asked young workers from 83 countries, 45 percent said someone has joined their organization as a result of their recommendation. If that’s proving so effective, why should employers pay headhunters a huge commission to source candidates? Their own staff have better contacts.”

Full Story: http://www.talentmgt.com/industry_news/2008/December/3938/index.php