Using Recruitment Companies for Hiring

Using an ATS offers many benefits. The costs are lower, it takes less time to hire, and the overall quality of each hire is improved.

Using Recruitment Companies for Hiring

Countless hours are spent discussing a job opening, creating a job posting, advertising the job, searching for and screening potential candidates, interviewing (sometimes multiple times), checking references, and far more. Many of those hours could be wasted if the candidate doesn’t end up hiring on with your company. It’s therefore tempting to hire an outside staffing agency or company to take care of the recruiting process for you. But what is a staffing agency?

What Is a Recruiting Agency?

recruiting agency, also called a staffing agency, is a company that specializes in recruiting on behalf of their clients.. Hiring a recruiting agency can be a good way to save time and money. Although agencies charge fees for their services, it can end up being a very cost-effective option. For many companies, the recruiting agency can be the recruiting expert that they need.

What Is the Difference Between a Recruiting Agency and an Employment Agency?

Recruiting and staffing agencies are often confused with employment agencies. Employment agencies have the job seekers as their clients. They seek open positions for those clients, who then apply for the positions. Recruiting agencies, on the other hand, have companies as their clients. They seek candidates on behalf of companies to fill open positions.

How Does a Recruiting Agency Work?

Recruitment agents do the research into the available positions, looking for and identifying qualified candidates, screening those candidates, and sending the most promising candidates on to the clients for consideration. The recruitment agency has to know not only about the open positions, but also about the company itself. They’re looking for candidates that can meet the requirements for the open position, but are also searching for those who can fit in with the company’s culture.

Benefits of Using a Staffing Agency

The recruitment process can be both lengthy and expensive. It can cost as more than $56,000 per employee and only some of that includes training and any productivity that is lost during the process. A lot of the time and effort involved in the recruitment process is within your HR department. For many companies, hiring a staffing agency can solve many of those problems.

Saved Time and Money

A major advantage of outsourcing your recruiting and using a recruitment agency is that you only pay for actual jobs filled, rather than the number of interviews. All of the hours searching through applicants for the right candidates are done by the recruitment company rather than in-house.

Higher-Quality Applicants

If you decide to use a recruitment company for your recruiting, you may see fewer applicants than if you had kept the process within your company. This is because the recruitment company would spend the time to narrow down the number of applicants to only those who have what you’re looking for to fill the job opening.

The number of candidates may be fewer, but they are higher quality. By outsourcing the recruiting process, you would no longer see every applicant who came your way and wouldn’t have to sort through applicants who aren’t qualified for the position.

Reduced Hiring Risk

Taking a chance on a new hire is also less risky using a recruitment company. Many offer guarantees for a certain time period. If the new hire doesn’t work out during that time, the company would begin the search again. The guarantee that is generally offered may be no charge for the search of the original new hire, with the recruitment company only charging their fee if the employee stays past the guaranteed time period.

Increased Visibility for Job Listings

Getting the job posting to be catchy enough to attract potential candidates while also providing all of the necessary information about the job opening can be tricky. If you hire a recruitment company to do the recruitment process for you, they’ll do the hard job of selling your company to potential applicants. This may result in more qualified candidates applying for the job than you might get on your own.

Not many companies outside of big names like Google, Apple, or Microsoft have large numbers of candidates rushing to apply.

Recommendations for Improved Hiring

If you’ve been having trouble attracting candidates, part of the problem may be that your compensation isn’t what candidates would expect for the position. A recruitment company could help you re-evaluate what you are offering to ensure that it’s fair for the position.

What Do Staffing Agencies Charge?

How much a staffing agency costs depends on the services they offer and where the agency is located. Many don’t charge unless the candidate is successfully hired. If the employee is a temporary employee, the staffing agency will pay them, but then charge the client the costs, typically plus a percentage. For permanent employees, the staffing agency typically charges a percentage of the salary for that position. There may be extra costs if the position takes a long time to fill.

Advantages of Using ATS Software

Hiring a recruitment company to handle your recruiting can be expensive, however. If you want to free up the time and money in-house without paying to outsource your hiring, Applicant Tracking Software (ATS) may be a good solution for your company. The software can make the recruiting process a lot faster and help you keep track of candidates who might be a good fit for your company.

Recruitment Agencies Use ATS

Recruiting agencies specialize in applicant tracking. Therefore, they’re not going to be using a spreadsheet to keep track of potential candidates for their clients. What makes a staffing agency effective is in part their expertise, but also the tools they use, which include an ATS.  By using an ATS, companies may be able to remove the middleman from the equation. An ATS can offer many of the same benefits as a recruiting agency.

More Control over Hiring

One disadvantage to outsourcing your hiring is that you give up control over the process. Although the ultimate decision of who to hire is still yours, there’s much of the applicant tracking process that isn’t with a recruiting agency. Companies must trust that the recruiting agency understands exactly what they’re looking for and which candidates will be a good fit with the company culture. With an ATS, the recruiting process stays in-house so you don’t lose control over any part of the process.

Same Benefits as a Recruiting Agency

Using an ATS offers many of the same benefits as hiring a recruiting agency. The costs are lower, it takes less time to hire, and the overall quality of each hire is improved. There’s more responsibility on your company’s part to manage the recruiting process if you use an ATS instead of a recruiting agency. However, the ATS can help make that process a smooth and easy one.

Are you looking for a recruiting solution to help fill job openings? Visit our Software Match page to let us help you find the right Applicant Tracking Software for your needs.

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