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CIPD Case Study on Chemistry
RSS FeedsRoger Philby, founder of Chemistry, thinks that the recruitment industry as a whole relies heavily upon a traditional business model that ‘discourages open relationships’. Philby says that ‘clients are pessimistic about the performance of recruitment agencies. Their expectations are at zero and they are on their guard from the start.’
Roger Philby, founder of Chemistry, thinks that the recruitment industry as a whole relies heavily upon a traditional business model that ‘discourages open relationships’. Philby says that ‘clients are pessimistic about the performance of recruitment agencies. Their expectations are at zero and they are on their guard from the start.’Before starting up Chemistry, Philby commissioned a business consultancy to find out what clients most disliked about recruitment agencies. He used the findings to inform his own business strategy, arriving at a different business model for Chemistry.
Chemistry’s model is based on fees. The agency charges a minimum percentage fee up front and the balance after the successful candidate has been in position for six months. Although this may appear risky, Chemistry has proven to be over 75% accurate in predicting the future performance of new hires (normal recruitment processes run at 25%*). This shared risk–reward model, Philby believes, is one of the reasons for their amazingly ‘sticky’ client relationships.
All of Chemistry’s recruitment consultants are trained in occupational psychology tools and techniques. Chemistry also trains the organisations it works with in candidate profiling to become ‘Chemistry accredited’. Every Chemistry candidate receives a ‘Chemistry Book’, containing feedback on what Chemistry have discovered about them in their interactions.
Working in the UK with Yell, the international directories company, Chemistry has seen the nature of its work evolve as Yell has taken certain services back in-house. Yell now consults Chemistry on added-value services such as special resourcing projects and the occasional recruitment ‘overflow’ need. Chemistry’s recruitment consultants have some revenue targets to meet, but the emphasis of their reward is on the basis of client satisfaction scores, with clients deciding how much that worth is. This works well for Chemistry, as their philosophy is to find and place the best talent for the client organisation. Therefore, their staff reward is designed to support the agency values.
The agency believes strongly in leading by example when it comes to client-handling skills. Philby says,
‘The only way you can truly exhibit a “best in class” approach is by behaving appropriately. We do it here by role-modelling – everyone knows how to behave, not because we tell them how to but by our
actions.’
Chemistry’s new consulting practice is currently helping their client organisations redesign their own
recruitment models. The agency’s approach to customer relationship management is to treat clients and candidates as the most important people in their lives. Information was provided by Roger Philby, founder of Chemistry.
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*Source: British Psychological Society
