What is the responsibility and use of recruitment agencies?
Sourcing the best candidates among all applicants for your organization is a tiring process. It includes many stages: publishing advertisements, marketing the vacancies, reviewing and filtering applications, conducting interviews, evaluating the applicants, and conducting negotiations or post joining activities. Organizations want to streamline their recruitment process but often struggle with the time taken to execute these extensive activities and the burgeoning associated costs.
Therefore, it is preferable to leave a job to the pros, specializing in recruiting in many cases. Thus, organizations often resort to recruitment agencies. These recruitment agencies have specialized expertise in all parallels of talent acquisition and can deliver a quality workforce for your requirements.
Organizations usually operate within a specific domain and need to establish separate departments from workforce acquisition, whereas agencies providing recruiting services work solely in the talent acquisition field. As a result, they can provide staffing solutions at a lower cost than the cost that the organization would have to bear to do the hiring themselves while saving their time and effort.
- What is a recruiting agency?
- Why get a recruitment agency?
- So, if recruitment agencies help in hiring, how do you hire them?
- How to decide on the best recruitment agency for you?
What is a recruiting agency?
Recruitment firms are responsible for providing end-to-end talent acquisition solutions to an organization. It acts as an intermediary between employers and job seekers. They efficiently connect skilled job seekers to those who require those skill sets in their organizations.
Using a recruiting agency to deliver on hiring requirements saves the time, money, and effort of a business. Usually, the recruitment agency charges a fee per person hired through them. This fee is between 20-100% on top of the wages of the hired employee.
This means that a company hiring an employee at a pay of $10 per hour can expect to pay the recruitment agency a fee consisting of the wages plus a 20-100% surcharge. This would then amount to the company having to pay between $12 to 20$ per hour that the recruitment agency takes to provide its staffing solutions.
Why get a recruitment agency?
There are several benefits associated with using a recruitment agency to meet your staffing needs. They are broadly outlined as:
For any organization, time is of the essence. Recruitment agencies have streamlined hiring processes that help organizations save time and recruit for the required positions. The time taken by the recruitment agency to provide the same staffing solution is less than the time that the company would take to search and find an employee on its own.
This time that would be spent on recruitment can be alternatively utilized in other productive activities. This allows the company to focus on its domain expertise without wasting time on staffing, which the recruitment agency handles.
Indeed, a company working in manufacturing may not find core competence in its hiring process. They would also like to focus purely on the industry they specialize in and not expend time and effort to develop strength in hiring.
As their priorities are differently aligned, and their resources are better employed elsewhere, trusting a reliable recruitment agency is a good option to meet staffing needs. The recruiting firms have core competence in end-to-end hiring and can conveniently connect a company/business to the best employees for the job.
Hiring and recruitment entail many legal ramifications that need to be kept in mind and appropriately managed. This includes drafting and agreeing on contracts to tax-related document drafting. It also has additional considerations such as satisfying labor laws and employee health and safety policies.
The company has to meet all these needs while making a hire, and without domain expertise, doing this may be challenging. At this juncture, using recruitment firms lowers the risks. By satisfying these considerations, the company is also offsetting potential costs incurred in the future due to policy infringements.
A recruitment agency shoulders the responsibility of recruiting while also meeting the legal requirements. This lowers organizational risk, and one can focus on selecting the right employees without splitting hair over legal liabilities.
Adjusts for different requirements
In today’s day and age, companies are no longer interested solely in the traditional full-time employment model. Instead, they deploy a dynamic workforce comprising interns, contractual employees, and temporary workers. A recruitment agency helps the company fulfill its ever-changing staffing demands and provide a stream of qualified employees for various roles at any given time.
So, if recruitment agencies help in hiring, how do you hire them?
Contacting the recruiting agency
The HR representative or other employees representing the company can contact recruitment agencies. They outline the requirements regarding the skills they are looking for, available pay range, required qualifications, joining availability, etc.
Job description design
The recruitment agency understands the requirements of their clients looking who search employees, and describes jobs for marketing, accordingly. Once a description explaining the broad terms of employment is prepared, it is circulated across social media and other relevant channels.
The recruitment agencies efficiently evaluate the applications for the advertised position. They streamline the vetting process and then conduct interviews for those who pass the filter. Once the best applicants are selected, the recruitment agencies introduce them to their clients.
Finalization of employment
The final authority to decide which candidates to select remains with the organization. However, they are provided the candidates with the best fit by the recruitment agency, which has already completed sourcing and finalizing the best candidates.
Handling legal formalities
The recruitment agency continues to support its clients beyond employee hiring. It assumes responsibility for managing the paperwork involved in hiring employees. This includes handling contracts and tax-related paperwork.
How to decide on the best recruitment agency for you?
Trusting an external organization to handle an aspect as crucial as deciding who gets to work for your company is a huge decision to make. Therefore, one would be wise to consider the most important factors and arrive at a well-reasoned decision concerning which recruitment agency to trust. Some of these factors that help companies make better decisions include the following.
Different recruitment agencies have different processes and approaches to hiring. Identifying those with the processes that align best with the ideology of your business is a good idea. To do this, a company should consider various recruitment agencies, communicate with each to have clarity on their hiring model, and decide.
While many agencies offer recruitment solutions across a broad range of corporate domains, some are also niche-specific. As they are more specialized and cater to a smaller clientele (only those operating within that domain), they tend to be more expensive. However, they help provide specialized recruitment solutions and are a good idea if crucial positions with domain-specific knowledge need to be filled.
As mentioned, a recruitment agency’s journey with a company does not end with the hiring. Therefore, they should also provide post-hiring support such as handling paperwork, managing contracts, and assisting in employee onboarding.
Conversely, as not all agencies provide these services, the company should check before finalizing one. If the company requires these services, it can pay extra and hire an agency that provides them. If not, they can save costs and opt for an agency that terminates its involvement once hiring has been completed.
The best recruitment agencies have transparent channels of communication established with companies. They understand the requirements clearly and communicate their hiring process and other aspects related to recruitment to the company.
This helps the company demystify any confusion regarding the hiring process. Recruitment agencies should cover in detail aspects such as compliance, human resource, and payroll. Having an honest conversation also helps the company avoid any hidden costs and maintain a healthy relationship with the recruitment agency.
A company should always choose a recruitment agency with established expertise of many years. This helps them create experience-backed knowledge that they can draw upon to drive the best hiring for your organization. In addition, any recruitment agency with a credible background will have competence developed over many years. This helps them refine their hiring process. In addition, it continuously improves the services that they provide to the companies. Besides, the company recruiting the agency would have peace of mind, safe and proficient hands.
A recruitment agency that satisfies your staffing needs efficiently can turn out as a game-changer. It allows you to access a competent workforce in a manner that is time, resource, and effort conservative. Your organization benefits from a reliable recruitment agency, which almost acts as a partner in cultivating a dynamic workforce comprising full-time employees, interns, temporary workers and contract-based employees.
This helps your company benefit from a motivated workforce without deviating its focus from its core industry. As mentioned, trusting the right recruitment agency is crucial as any lapse in the recruitment process may lumber your company with employees without the requisite skill set. Additional time may be required to rectify the issues in the hiring process. Therefore, opting for a reliable recruitment agency represents a great return on investment for your firm and opting to hire an efficient one is always a wise idea!
About the author
Dennis Hoinkis has been working as a web developer and in online marketing since 1998. After building up a marketing agency and the exit in 2013, he consulted international groups as a freelance consultant. Since 2020, he and his team now offer staffing services in this field.
Dennis Hoinkis CEO, FSOM Group Corp.