Hiring for any business is not an overnight process. Sourcing, screening, interviewing candidates, determining salaries, organizing, and conducting onboarding take precious time away from recruiters, which may result in higher costs for a company. That’s why some businesses partner with recruitment agencies, which may take a lot of effort and time out of the hiring process to find candidates for open roles. However, like with any partnership, working with a recruitment agency has obvious advantages and disadvantages. Here are several important pros and cons you should consider before deciding if you should partner with a recruitment agency:
Pro #1: Fast Hiring
The time to hire is one of the most important metrics as it usually indicates the efficiency of the process. The more time the company spends on hiring, the higher the recruitment costs. The time investment in hiring typically includes:
- Discussing the goals of the particular recruiting effort
- Time spent writing, posting, and promoting open positions throughout different channels
- Time required to screen and sort candidates
- Time spent on interviewing, gathering references, verifying recommendations
All these hiring stages make recruitment an extremely long process that significantly affects the company’s spending. Recruitment agencies save time and costs associated with the most time-consuming tasks, such as candidate sourcing and screening, by taking control over these processes. They check references, screen candidates, and complete background checks providing employers with more time to do valuable tasks such as interviewing qualified candidates.
Pro #2: Higher Quality of Hire
Candidate sourcing and screening require a lot of time and effort, yet it does not guarantee you will find a candidate who perfectly matches your job requirements. Using a recruitment agency may significantly improve the quality of candidates in your recruitment process. Agency recruiters are experts in candidate selection and have access to a large pool of pre-screened candidates. They use efficient methods to identify the top talent among thousands of candidates.
For instance, Employa Agency uses AI-powered technology to screen CVs thoroughly and choose candidates who exactly match the employer’s requirements. The advanced features allow clients to set as many criteria as needed to narrow down the candidate search. As a result, faster and more accurate screening leads to a higher quality of candidates interviewed.
Pro #3: Expertise and Knowledge
According to the Future of Work Report 2022 by Monster, 9 out of 10 employers struggle to fill positions due to a skills gap. If you are looking for an employee with specific skills, a specialized recruitment agency can make the process more efficient.
Most recruitment agencies specialize in recruiting for a particular industry. Therefore, they usually have better knowledge and a deeper understanding of their target job market. Their connections, resources, and large pools of passive candidates allow them to find a perfect fit for your role. Furthermore, recruiters in agencies are also specialists in estimating soft skills and finding trustworthy employees who will be suited to the company’s culture.
Con #1: Higher Costs
The fee charged by a recruitment agency mostly depends on the annual salary of an employee that you are looking to hire. In general, the costs vary from 15% to 30% of the hired employee’s wage. If you are looking for a very high-lever specialist with specific skills, this amount can be even higher.
On the other hand, Zippia research shows that having an in-house HR team can increase an organization's costs by as much as 50% when you consider the annual salaries of recruiters.
Con #2: Lack of Control
Establishing an efficient internal hiring process can help strengthen your company’s reputation with potential and current employees. Even if you reject a candidate, they may still spread the word about their positive candidate experience with your company. However, if you decide to partner with a recruitment agency, you rely on its brand and professionalism.
The first impression of your company depends on how the agency presents it to candidates. A bad recruitment agency may present your company in a way that is unattractive to potential candidates. Moreover, if you partner with a recruitment agency, you won’t have full control of your employer’s brand, missing an opportunity to promote your reputation as an employer of choice.