Recruitment firms don’t only work with small companies and corporations. They also partner with holding companies, a type of business entity that doesn’t sell services or products but owns the controlling stock interest in other businesses.
Diversified holding companies own a controlling interest in many types of companies and their hiring needs across business sectors. When a diversified holding company hires, it may hire for its own staff or for that of one of its subsidiary companies. This factor requires specialized recruitment strategies based on targeted recruitment.
Understanding Diversified Holdings
Formed as a limited liability company (LLCs) or corporation, holding companies or holdcos, as they’re also called, oversee the operations of their holdings, called subsidiaries, according to Investopedia. These holdcos function as the parent company, while the subsidiary firms function as child companies. A holding company does not handle the day-to-day operations of its child company investments but monitors major management decisions, such as hiring at the C-level.
A holding company may own many related businesses, such as subsidiary firms in the beauty industry. One company might make skincare products, another hair care products, and a third might craft makeup.
Other holding companies diversify their holdings – the companies they own. It might own an electronics firm, a solar panel manufacturer, real estate, and a baked goods company. Called diversified holding companies, these corporations own controlling interest in a wide range of businesses that cross business sectors, explains Investopedia. These holdcos differ from private equity firms that create investment partnerships to buy and manage, then sell, companies for a profit.
Diversified holding companies hire across brands and business sectors, an undertaking that proves complex, so many holdcos turn to recruitment agencies for help. A recruitment agency streamlines the hiring process, working with the hiring manager of a company to produce top-notch candidates, and, sometimes, handles the contract negotiations and onboarding, according to Upwork.
Identifying Talent Needs Across Sectors
When a diversified holding company works with a recruiter to fill positions, it may need staff for its operation or a subsidiary. Because it oversees the C-level and, sometimes, management level, hiring and firing of a diverse set of businesses in many sectors, the recruitment firm with which it partners must hone in on the sector placement of the open position. This requires sector-specific expertise, making it more important for the holdco to partner with a recruiting professional with expertise in various sectors.
When hiring for a position at the holding company, the recruiter needs access to candidates with versatile skill sets who exhibit adaptability and strong cross-functional skills. According to Forbes, each subsidiary needs to define its corporate brand and create a recruitment plan based on its brand. If the incoming employee will work for one of the subsidiaries, the recruiter should use the corporate brand and recruitment plan. But that’s only the tip of the recruitment iceberg.
Tailored Recruitment Strategies
The recruiter for a diversified holding company must use a custom approach to serving the client by developing sector-specific recruitment plans. To do this, the recruiter identifies the sector of each subsidiary and obtains the recruitment plan of each subsidiary, then develops a custom recruitment plan for each sector and brand.
Today’s top recruiters use data and analytics to identify and attract top talent across diverse sectors. This goes beyond applicant tracking system (ATS) resume scanning to include predictive modeling to predict future hiring trends and measuring key performance indicators (KPIs) to determine the efficacy of recruitment techniques.
A recruiter with experience assisting diversified holding companies builds a talent pipeline for each brand or sector. This creates a consistently updated pool of potential candidates for various sectors that speeds up the interviewing, decision-making, and hiring process for the holdco. Recruiters don’t do it alone. Instead, they partner with hiring managers to create a united front that best serves each subsidiary and the parent company.
Partnering with Hiring Managers
To best serve the diversified holdings of a parent corporation, a recruitment firm like MRINetwork collaborates with the hiring manager of each subsidiary. By working closely with hiring managers from different brands and sectors to understand their unique needs, the recruiter effectively places the right recruits at each company. This partnership results in continuous feedback that results in refined recruitment strategies. The data-driven recruiter leverages the latest technologies to provide actionable improvements to each brand’s hiring processes.
Partner with MRINetwork today to improve the hiring of your diversified holding company and each of its subsidiaries. Enjoy the strong working relationship our recruiters develop with your hiring managers to continually provide your companies with top-notch candidates. We utilize the latest technology with savvy to improve your hiring and hiring processes. Contact us today to start your next hiring search with our help.