Are Recruiting Services Worth it for Employers?
With such a tight talent market, it can seem impossible to fill open jobs. This blog breaks down when to work with a recruiting service and when there isn't value for companies to do so.
Whether you're a small business or a Fortune 500 company, the process of finding and hiring the right employee can be overwhelming. So many factors go into making the perfect match - skills, experience, culture fit, and more. And with such a tight labor market, it's more important than ever to make sure you're not wasting your time and money on the wrong recruiting services. In this blog post, we'll help you decide if recruiting services are worth it for your business.
Recruiting Services Aren't Worth it for Companies When:
There are times when it is not worth it for a company to engage an external recruiting and staffing firm. Here are some of the times when it is best for the employer to NOT work with a company that specializes in recruiting.
Not Ready to Hire
You might think you're ready to hire, but if your company isn't in a position to bring on a new employee, it's not worth it to use a recruiting service. Be sure you have the budget and resources in place to support a new hire before moving forward.
Not Willing to Pay
Recruiting services aren't free. Firms like The Contingent Plan do provide services on a contingent fee basis (where you only pay if you hire one of the candidates presented). But, your company will have to pay for the recruiting services if you do want to proceed with the candidate. So, if your company isn't in a position to pay for the services, then it isn't worth working with a recruiting firm in that case.
Easy to Fill Roles
There are some jobs that are always easy to fill and it isn't necessary to engage a recruiting service in that case. In that case, it is probably best for the employer to handle the hiring internally instead of working with an external recruiting firm.
No Clear Hiring Process
If your company doesn't have a clear hiring process, it will be very difficult to work with a recruiting service. A good recruiting firm will want to know the details of your hiring process so they can ensure a good fit for the candidates they present to you.
Unwilling to Make Changes
A recruiting service can help you improve your current hiring practices. However, companies that are unwilling to change or that can't evolve with the talent market won't be able to find value in the services of a recruiting firm. Only employers that are open to suggestions and willing to implement new processes will realize the value from partnering with a recruiting and staffing service.
They Don't Fill the Types of Roles You Need
Not all recruiting services are the same. Many recruiting firms specialize in a particular industry, profession, region, or even placement type (temp v. permanent). A recruiting firm that doesn't work on the types of jobs that you need to fill will struggle to provide the services you need. So, make sure that you are working for the right type of firm for your company.
Recruiting Services May be Worth it for Employers When:
There are times when it can be helpful for companies to work with an external recruiting firm. Here are the times when employers can find value by engaging with recruiting and staffing firms.
You're in a Time Crunch
Companies that need to fill an open job quickly can find benefits in working with a recruiting firm. Recruiting firms specialize in filling jobs and have candidates ready to go. Working with one, or many, recruiting firms can be the fastest way to fill your open jobs.
You Need to Increase Efficiency
Tired of losing candidates in the hiring process? It could be that the hiring process or approach is inefficient in the current market. Working with an external recruiting service can help your company to streamline the process and to identify what is causing the loss of your candidates before you lose them.
Finding the Wrong Candidates
Unqualified or the wrong types of people applying to your open jobs? It could be that your organization is going about the search the wrong way. Recruiting firms know how how to find the right people for your open jobs and how to navigate job boards. Recruiting services can also search broadly to find the right types of candidates for your open jobs.
No one is Applying for the Position
If your current hiring practices are not working, it might be time to try something new. It could be that the job title is inconsistent with what candidates think it means, that the job isn't positioned well in the market, or that your organization needs to rethink the role. Whatever it may be, an experienced recruiting firm can help your company to find the candidates that you need to fill the job and provide real insight into what it will take to attract candidates in the current market.
Recruiting Services are Definitely Worth it for Employers When:
There are many times when an employer should work with a recruiting service to fill its open jobs. Here are the times when organizations will definitely find value in partnering with an external recruiting firm.
There isn't a Dedicated Resource Internally
Hiring takes time and effort. Small businesses and start-ups frequently do not have the internal resources to focus on hiring. In that case, there can be real value in partnering with a recruiting firm to focus on filling the pen jobs. Working with a recruiting firm to get those jobs filled will get the open roles filled faster with the right people so your existing team can focus on what they do best.
Flexibility is Needed
There are times when the structure of the role requires flexibility. It could be that your organization can only consider temporary support because you can't get the approval for a permanent headcount addition. Or, that the company has just landed a new client and is unsure how that will go. In that case, a recruiting firm can help your organization to structure the role in a way that works for the business and for the candidates.
Discretion is Needed
A recruiting service will frequently not disclose the name of its clients to candidates in the early stages of the search. This can be useful to employers that need the discretion to fill particular roles. The ability of the recruiting firm to source, vet, and present candidates confidentially in the market for the organization can be a huge benefit for the employer.
Candidate Options are Required
When an organization needs to present multiple candidate options to a hiring manager, it can be helpful to engage with a recruiting firm. Recruiting firms can provide a range of qualified candidates for the role quickly so that the organization can make the best decision for the business.
The Costs of a Bad Hire are Too Great
The cost of a bad hire can be significant. The cost of a bad hire includes the direct costs to replace the employee as well as the indirect costs of a poor performer or someone that the client will not like. Organizations that can't afford or don't want to risk the costs of a bad hire can find tremendous value in working with recruiting firms to ensure they find the right candidate for their open jobs.
There are some positions that can be challenging to fill in the current market. In that case, the employer will find the most value in working with one or several recruiting firms to try to find the candidates right for the role. Every recruiting service works with different candidates and having a broad search will help your organization to find the right candidates for even the most challenging roles to fill.
At The Contingent Plan, we pride ourselves on our quality candidates and our commitment to finding the perfect match for each employer. Our recruiting team specializes in helping companies fill their open jobs. We don't focus on an industry, but on particular role types across industries.
Our specialties include filling the mid-career roles that require 3 - 7 years of experience. We fill jobs on a temporary, temporary to hire, and permanent basis. This gives us a breadth of the right candidates for your roles and our professional recruiters know the key differences between each. If you're looking for a reliable and affordable recruiting service, we'd love to talk to you!