The changing landscape of today's workforce makes it difficult for small to midsize business owners, such as yourself, to find and hire new talent. Hybrid work arrangements, highly specialized roles, and the rise of contractors are changing how companies recruit employees.
Hiring a recruitment agency can solve many of today's hiring problems, and it’s important to know why and how your company can choose the right one.
How do recruitment agencies work?
What goes on behind the scenes of a recruitment agency depends on the agency itself. Ultimately, any agency’s primary goal is to make the recruitment process as easy and efficient as possible for organizations.
A reputable recruiting agency will:
Use in-depth market research and data to identify qualified candidates for employers.
Utilize high-tech tools such as applicant tracking systems (ATS) and artificial intelligence (AI) to streamline the hiring process.
Act as a mediator between employer and job seekers, providing advice on salary range and employment market conditions.
Design tailored recruitment strategies to meet an organization's specific needs and goals.
Source, screen, and present potential hires to employers.
Negotiate contracts with job candidates.
In return for these services, the agency will charge your company a fee, typically a percentage of the candidate's first-year salary.
The benefits of an HR recruitment agency
The challenges of advertising, promoting, screening, interviewing, and onboarding new hires will drain a small to midsize company's resources. Hiring an HR recruitment firm improves and streamlines the process by providing several benefits:
Larger talent pool
A recruiting agency has already established an extensive network of potential candidates who have been vetted and are immediately available for hire. These candidates are organized by skills, experience, understanding of the industry, and other unique factors, making it easy to fit specialized needs. An agency can quickly provide your organization with a more diverse pool of qualified job seekers that would take considerable time to gather on your own.
Expertise in recruiting
Even if you did have the time to go through dozens, if not hundreds, of applications, you still wouldn't have enough time to match the experience of a recruitment firm. An experienced recruiting firm has successfully recruited thousands of new hires in specialized fields such as software development, market research, and talent management.
Save resources
Recruiting firms have learned all possible mistakes throughout the hiring process and developed successful tactics to avoid them. By working with a recruitment agency, your organization will borrow that knowledge to hire and onboard employees efficiently, saving you time and money.
How to choose a recruitment agency
Not all recruitment agencies offer the same services, serve the same industries, or have the same expertise. Following a set of proven steps will align an agency with your company's specialized needs.
Understand your skill needs
Knowing what skills your organization lacks defines the exact requirements and expectations you will seek from an agency. If your company decides you need more tech-savvy employees, you can narrow recruitment options to those specializing in sourcing technology candidates. Assess each area of your business and determine what skills are most in need.
Learn the types of recruitment agencies
You may be looking to fill a permanent position, seasonal help, or specialized role, and there is a recruiting firm for each type of position. Here are a few different types of recruitment agencies to consider:
Staffing agency recruiters: A staffing agency recruiter specializes in sourcing and hiring candidates for temporary, contract, or seasonal roles, providing a flexible workforce solution for companies with fluctuating staffing needs.
Internal recruiters: Internal recruiters function within the organization they serve, focusing on full-time roles, understanding the company culture, and maintaining knowledge of the firm's strategic goals for long-term staffing solutions.
Specialist agencies: These agencies focus on a specific sector or job function, offering a deep pool of candidates with unique skills and expertise, which can be a boon for companies in specialized industries or roles.
Temporary agencies: A temporary agency provides outsourcing services for companies seeking short-term staffing solutions, offering quick turnaround times and the ability to scale quickly when unexpected workloads or deadlines arise.
Clarify with every agency what strengths they provide, and compare them with your organization's needs.
Compare your budget with pricing plans
Once you have determined a direction, filter your options even more by comparing pricing plans. The features of a company may seem appealing, but they won't serve your company if it drains all your financial resources. Ensure the agency you choose aligns with your needs while fitting into your budget.
Do your due diligence
While every agency will make claims on their results and success, it's up to you to put in the research to make sure they are legitimate. Here are a few examples of steps you can take:
Get references, and talk to people that have worked with the agency before.
Read customer reviews on third-party websites.
Make sure the agency is compliant with data privacy laws such as GDPR or CCPA, depending on what country you operate in.
Request case studies of previous placements, and ask for proof of success stories.
Conduct an interview
Prepare a few questions before interviewing your recruitment agency. You want to understand how communication will take place, the timeline for filling your needs, and what responsibilities your company has to ensure a successful campaign. Conducting an interview gives you an idea of the people that will be working for your company.
How much does it cost to hire a recruitment agency?
Recruiting agencies rarely charge an upfront fee like most service-based companies. Instead, they typically charge based on a percentage of the hired employee's wages. Your organization should expect full-time employees to pay anywhere from 15% - 25% of their first-year salary. This amount will change if you are hiring a recruiting agency for a temporary hire or an hourly employee.
Questions to ask a recruiting firm
Talking with an HR recruiting firm over the phone isn't just a chance to learn more about their features. Prepare questions relevant to your company's goals and what you need from the staffing firm.
How long has your agency been running?
How long does it typically take you to find the right talent?
What is your hiring process?
What tools and websites do you use to find candidates?
How many candidates do you currently have in the agency database?
What do you look for in a candidate?
Do you have experience recruiting for companies like mine or in a similar industry?
How much do you involve business owners throughout the hiring process?
What are the terms and conditions for the service?
How do you calculate fees for your services?
Use the questions above as a starting point to uncover the answers that will help you choose the right agency.
Hiring your HR recruitment agency
Recruitment agencies take the work out of finding, hiring, and onboarding new employees. They establish networks with employers and job seekers to make the process easier, faster, and more efficient. Use the best practices above to find a recruiting firm that matches your company's needs and saves you time and money in the long run.