How can a recruitment agency save time and money?
Many businesses are moving towards outsourcing of their HR departments. The reason is clear, they don’t want to spend resources and time to run a whole department for recruiting and firing people. It certainly needs experts and resources to do that. However, different business holders are still confused. Whether it is good to hire a third party or not. In order to get rid of the confusion follow the article. What is a recruitment agency? Why do you need one? Are there any types of recruitment agencies? Or why do people outsource their recruitment? We have answered all these questions. More importantly, we have briefly discussed How can a recruitment agency save time and money?
You should keep in mind that you do not have to do everything. Business can be hard and complex to handle. If you are responsible for everything running around to keep the business in line, it will distract your focus from the actual goal.Therefore, if running an HR department is not one of your top business goals but you are doing it just to meet your human resources. You can outsource it. Clearly, it would be helpful for you. You will get rid of hiring responsibilities. Furthermore, the resources you’re spending on in-house HR departments, now you can spend them somewhere more important. So it saves both your time and money. For a more brief look follow the article to the end!
What is recruitment?
A process to search, monitor, hire and onboard judging is called recruitment. In simple words it is a talent acquisitions process or talent hunt to find new employees for your office. In the current scenario most businesses have a Human Resource Management department to fill their vacant places. Target is to choose “Right person for the Right job.” However, the person responsible for hiring firing is called HR manager. A skilled HR department of any business is key to effectiveness. Because it’s up to them to provide efficient and talented Human resources.
Types of Recruitment Techniques:
Companies use different techniques to hire people, which lie between job ads in traditional ways to social media hiring posts, billboards, Public relation campaigns. Some of the companies even pay bonuses to their employees to encourage them to take part in new hirings.
Internal Recruitment
Post on your internal career sites to inform about the vacant position to your current employees. So these employees can apply for this post.
Third-Party hiring process
In this type of hiring, businesses usually hire a third -party as an HR Manager. It can be any company or individual
What is the Purpose of Recruitment Companies?
A recruitment company is one that deals with the recruitment for another company. Different companies hire these agencies as a third-party to do their work. They work on the behalf of other organizations to help them fill their vacant posts. Their responsibilities include search for qualified candidates, sourcing and vetting of those individuals and presenting the top talent individuals for hiring. It is also possible to outsource a part of the recruitment process instead of the whole department.
Why Employers outsource recruitment?
Recruitment is a time taking task, which requires enough effort to perform it well. As you know, employee turnover is high nowadays. It is quite difficult to go through all CVs and shortlist the candidates. This is why HR managers take months to hire a new employee. In the blog you can learn why business use these agencies:
1. To get rid of in-house Hirings
In House hiring is a complex task because you have to go through all of the CVs. You have to deal with both cvs shared on the internet such as resumes via emails and in person resumes. The validity of information given on the resume can be difficult to tackle. Furthermore, you have to check for the references given on the applications. Finally, you have to contact them to schedule an interview.
2. Tracing the X-Factor on Resumes needs extra skills
Some candidates have perfect resumes and educational backgrounds. Their CVs create an immense impact on recruiters, however how much they are right for the job is still a question. Normally, in offices HR managers only go through skills and expertise mentioned on the resume and shortlisted the candidates. Resultantly, they miss the x-factor, which can be a problem after recruitment.
3. Employee Turnover
Nowadays, employee turnover is quite high. Most companies are in pain because of employee retention. According to a report, nearly three and a half million people quit their jobs early such as within the first 6 months. This is why it is essential to find out about the candidate’s determination and motivation about the job. Many renowned companies and industries are still unable to find a remedy to this illness.
4. Avoid the budget allocation for HR department
If you are considering an in-house hiring you have to allocate a specific amount on a regular basis for the HR department. Such as you need to pay for the social media ad platforms to spread the words. Hiring of someone who can track the applicant emails and schedule them for verification.
5. Small businesses cannot afford HR Departments
As mentioned above, the HR department demands separate resources to run properly. Small business, work as freelance companies and a minimum number of projects cannot run an /HR department. That is why they take services from hiring agencies to fulfill their posts.
6. To avoid bad hiring
Bad hirings happen all the time. And bad hiring means all the resources you apply to hire for any post are now doomed. It is likely that you have to go through the whole process to fill the vacant position again.
Types of Recruitments provided by Recruitment agencies
Retained Recruiting
You can hire a third party to deal with the hiring processes. People pay these companies for a short period of time to find suitable candidates for your vacant positions. However, you also pay when the candidate is hired or at the time of hiring. Some businesses hire just an individual with relevant expertise to deal with the issue for a short period of time.
Contingency Recruitment
In this type you also hire a third party but you do not pay them in advance before any hiring. You only need to pay them when a qualified candidate is being hired.
Staffing Recruitment
Type of third party that only works to fill short or temporary places. These candidates join the company for a short period of time.
Recruitment Process Outsourcing
When any organization completely outsources its Hiring department to a third-party. That party is completely responsible for the talent acquisition task of its employer organization. There are further different types of recruitment process outsourcing such as:
- End to End RPO
When the agency has a complete handle of all recruitment processes. They are responsible to make ads, get resumes and shortlist the candidates. They also take interviews and give you well qualified and experienced candidates.
- Project RPO
They hire candidates only for a specific project and do not deal with the whole HR department of the company.
- Selective RPO
They handle one or few selected hiring processes for the company. Sometimes, they only hire for specific skills and expertise.
- Recruiter on demand
These agencies are not hired by any company they work for individually. However, businesses provide them with their requirement and demands they are looking for
How does a recruitment company work?
The work and services provided by recruitment agencies can differ according to the nature of work and type of company.
Step 1: Agreement
Whenever any company decides to work with a third party recruitment agency, they have to come to an agreement. The agreement is basically about the payments such as a retained fee or contingency fee structure. Mover over, you also decide the type of merger you want and your expectations from that agency in that agreement. These agencies offer a guarantee period, to ensure you a valuable hiring. If they couldn’t hire within that period of time, they will again go back to board to keep searching for a good hire.
Step 2: Profiling
Next step is getting information about your vacant positions. The agency will discuss with you your hiring needs. They will discuss positions that are open and skills to skills that are Relevant to the position. They gather as much information as they can. As to find the best fit for you. That is why you should provide a job with a proper description with a list of requirements.
Step 3: Sourcing
Then the agency will search their database to find qualified candidates, and mobilize influencers to reach those candidates. They use their own network to reach them. These recruiters have high speed scanning skills, averagely they can scan any resume in 6 seconds. After scanning and reaching the potential candidates they call them for interviews.
Step 4: Interviewing
The interview process happens in two steps. First the agency will take a brief interview by themselves to take a look at candidates. They see if they are a good match for the company or not. During this interview the agency also guides candidates about the company’s work And expectations.
After the first interview they narrow the pool of candidates and share the details with the company. Then the agency will assist the company to arrange the final interview with them.
Step 5: Offer Extension and Negotiate
The recruiters will handle the offers you make. They negotiate the compensations with the candidate.
Step 6: Onboarding
Finally, the agency will assist you with employee onboarding. They will make sure that your new hire feels comfortable and excited about the new workplace.
Why should you work with a recruitment agency?
They have access to better talent
Their network is larger and carries more talented candidates. They are connected to multiple sources unlike casual HR departments of companies who rely on LinkedIn only. They also mobilize industry to get references about the candidates to choose from top talents. It is not easy to find them without resources and special skills which is a speciality of these agencies.
Keep you above your competitor
During the process if you let any potential, well skilled candidate due to lack of observation skills, undoubtedly, they are in talk to your competitors. A good employee is an asset for any company. It is certain that business runs through people. If your human resource is lacking efficiency, it can throw you out of the competition. This is why agencies hire people accordingly, because that’s the only job they have to do. They have time, experts and resources for this work. That’s why, when an agency delivers you a suitable candidate, it is, no doubt, a properly vetted candidate.
What are the responsibilities of the recruitment agency?
Depending on the agreement you have with them, their responsibilities start from throwing ads to onboarding the new employee and everything in between. Here are some responsibilities recruitment agencies perform:
Posting ads on different platforms:
They have connections on top talent sourcing channels to post job ads or projects. Most agencies run their own pages which include newsletters, social media pages or other social networks. People connected to these platforms visit them regularly to check any job update. Whenever the candidates apply or share their area of interest, the agency will add them in their database.
Building Relationship with talent:
They build a professional relationship with talented people in industry or in their social networks. This is why when any new job comes, they already have an idea about the potential candidates.
Interviews and Evaluation:
They conduct interviews and evaluate them accordingly. The process consists of more than one step. On each step, candidates get filtered out, so the best one remains in the line. They also facilitate the company in the final interview planning and process. Finally, one last task is to complete the paperwork and get the candidate on board.
It is true that Recruitment companies save Time?
Any business either it is related to engineering, IT, education, medical or fashion, human resource management is not their specialty. Each business has its own goals, they need time and focus to fulfill them. Extra tasks that they come along with during their work divert that focus and sometimes take a lot of time. Similarly, the hiring process also needs extra time and care. Moreover, hiring is one of those tasks that you have to do very frequently. It is because most of the employees quit their jobs without completing it. This is why if you have an outside party to deal with the issue it will save you a lot of time. So The focus on your actual goal remains without getting distracted. Moreover you do not need to conduct interviews and call for meetings for this purpose. Overall, this is time saving for your business.
Recruitment Companies are easy on your budget
In order to run an HR department within your organization, you have to hire the HR specialist. A team to run that department with all the necessary resources. Moreover, you have to pay for the advertisement of the new jobs. These advertisements run on social media pages, so to run those pages and to collect and organize the coming information you again need social media experts. Hiring an outside party may look expensive, however it saves you from all these expenses and you do not need to hire anyone on a regular basis. The thing is, once you’re done with the hiring process you can fire the agency anytime. By doing that you do not need to pay them on a regular basis like an in-house employee.
How can I select a recruitment agency?
First of all you should know that what you are looking for. You must consider your business and its focus area. Whether it fits with your budget or not. However there are some more points that you should keep in mind while choosing a recruitment agency.
- What is the focus area of that agency and what agreements they are offering?
- How much diversity and skills does their talent pool possess?
- What is the reputation and how much experience does the agency have?
- Is customization of services according to your needs available or not?
Conclusion
In a nutshell, a third party hiring process will help in many ways. You can find the best talent without spending too much time and money. However, keep in mind that the agency you are hiring has a license in the relevant field. Also keep in check the authenticity of their company client relationship in the market. Follow their market reputation and ask for regular reports of the task you have provided to them. However, if you reach a good recruitment agency, it will benefit you in many ways.
