Securing high-quality candidates can be a time-consuming and very resource-heavy process, regardless of the industry you’re in. For that reason, the majority of employers will use a recruitment agency at some point in their lifetime.
Using agencies can give employers greater access to the talent market and free up their time to focus on the business strategy. They have almost unlimited contacts, are professionals at negotiating contracts, and can identify the best talent.
If you’re thinking about working together with a recruitment agency, here’s an insight into how recruitment agencies work and the most significant benefits you should know.
What is the role of a recruitment agency?
A recruitment agency acts as a bridge between employers who are headhunting for quality candidates and candidates who are looking for an employer. Its primary role is to find the most suitable candidate for a job role who will be the perfect fit for the company. Their principal client is the company that is looking to make a hire.
The most common tasks of a recruitment agency include:
- sourcing talented candidates
- sourcing for specific hard-to-fill roles
- vetting candidates
- negotiating rates for the role
- learning about the market and forecasting future trends
- understanding of HR tools
- providing contractual support
- staying current with human resources laws and regulations
What is the difference between a recruitment agency and an employment agency?
The main difference between a recruitment agency and an employment agency is in who their client is. The main client of a recruitment agency is the employer, while the main client of an employment agency is the job seeker.
How do recruitment agencies get paid?
Recruitment agencies are paid by the employer for every candidate they bring to the company successfully. In most cases, the company pays the agency between 10-15% of a candidate’s first annual salary. The price can go up to 30% for hard-to-fill positions.
According to Undercover Recruiter, the average recruiting fees are between 15% and 25% of the candidate’s first-year salary.
What are the benefits of a recruitment agency?
No need for an in-house recruiting function
Some companies, such as startups and smaller companies, often don’t have the expertise or resources to hire an in-house recruitment team. They choose to use the services of a recruitment agency to make sure their hiring process is done effectively and professionally.
Hiring an external job recruitment agency replaces the need to put together an in-house team. Your company can save a lot of time, and you can invest your in-house resources in more relevant and productive work.
Support for your in-house team
There are multiple benefits to working with an in-house team and collaborating with an external recruitment agency. In many cases, these two parties often achieve the best results by working together.
For example, an agency can work on finding qualified, on-demand talent who can start working at a moment’s notice and make an impact quickly. The in-house HR person or staff can meet the demands of the existing employees within the company while the recruiting process for full-time employees takes place in the background.
Together, your in-house team and the recruitment agency can work together towards the common goal of hiring the best talent as quickly and as cost-effectively as possible.
Access to highly-specialized talent
According to Gartner, Inc.’s latest Emerging Risks Survey, talent shortage has become the top emerging risk companies face globally. In the U.S. alone, thousands of companies are struggling to fill high-skilled jobs.
Nearly 29% of employers said that the #1 reason why they can’t find employees is a lack of applicants. Another 20% say that applicants don’t have the required experience for the job.
This is where a recruitment agency can help. Agencies are professionals at searching, sourcing, and selecting high-quality candidates that would be an excellent fit for your company. They are specialized in a specific industry or function, meaning they have a pipeline of quality candidates at their disposal. Working with a recruiting agency can be of great benefit when hiring for technical roles and difficult-to-fill positions where there’s a skills shortage.
Ultimately, you’ll manage to reduce your time-to-fill and save costs in the long run as these candidates will already be screened and vetted.
Excellent compliance-regulation
Compliance can be a confusing and complicated issue for employers as there is a wide range of federal, state, and local laws to keep up with. A company can easily find itself violating laws, resulting in expensive litigation or investigation.
Recruitment agencies are experts on the basics of HR compliance. They continuously stay informed about compliance through their HR association’s legislation updates or by attending classes.
A recruitment agency will keep the labor laws in mind and warn a company of any violations of laws and regulations. The staff can handle complex legal recruitment issues and help companies create better hiring strategies with reduced risk.
Contractual support
The majority of companies work with a recruitment agency so they can focus on more crucial tasks at hand. The companies don’t have the time or internal resources to promote employees, review applications, prepare contracts, negotiate a salary, or stay up-to-date with the latest laws and regulations. Having a reputable agency taking care of all contractual work can limit a company’s exposure to risk. The agency will vet applicants and take care of the payment process.
Additional security
For many employers, the number one reason for using a recruitment agency is additional security when it comes to new hire retention. The more reputable agencies offer guarantee periods with which they promise that if the new hire leaves or is fired within a specific period of time (usually 3 to 6 months), they will find a proper replacement free of charge.
You can use the guarantee period as an opportunity to make sure the new hire is the right fit. If it turns out that they don’t fit within your company, the agency will find a more suitable candidate. Although it might take a few tries to find the right match, the agency will learn more about your priorities and culture.
In short, collaborating with the right recruitment agency can help you recruit and retain the right candidates faster and even cheaper!
Final Word
There’s no doubt that a recruitment agency can benefit a business in so many ways. Especially if you don’t have the resources for an in-house team, an agency can help you hire candidates that best fit your hiring needs and your budget.
Finding a suitable recruitment agency can be challenging, but there are some steps you can take. First of all, define your hiring needs, set a price range you can afford, and do your research.
By following these steps, you’ll manage to choose your perfect recruitment agency and put an end to your struggles to locate exceptional talent.
