Find out the benefits and drawbacks of hiring an employment agency. An employment agency Toronto can help you hire the right people for your company. You should consider the pros and cons of hiring an employment agency before making a decision.
In-house recruiting vs using employment agencies
Finding great candidates these days is difficult. It’s really hard. It’s a candidate-driven marketplace. With the unemployment rate at an all-time low, it is more competitive than ever. This situation means that your best job applicants are passive job hunters. They don’t actively search for work, as they already have one. The job board does not have enough to attract the best candidates.
Register for our webinar to increase your employment marketing efforts. It is becoming increasingly difficult to attract great talent in today’s competitive labor market. Register now for the HRCraft to learn more about candidates online and offline and how you can adapt your employment marketing strategies.
It is important to create a compelling employee value proposition, write a job posting that stands out, and promote it on social media. All this to attract potential candidates and convince them that they should apply for your job openings. After receiving applications have been received, you need to spend hours and search for qualified candidates. All of this takes time. It’s a lot of work.
You won’t be able to recruit the right candidate if you don’t have a dedicated insider. This will mean that other members of your team will be affected by the additional recruiting work. Even if your in-house recruiter is dedicated, it might not be possible to find the type of candidates you are looking for.
You might be in a similar situation and thinking about using the services of a recruiting agency.
High-quality candidates can be found and shortlisted by employment agencies. But, there are both benefits and disadvantages to using an employment agency. Continue reading to learn about the advantages and disadvantages of using a recruit agency.
There are Some Advantages and Disadvantages to using employment agencies
There are three main benefits to using an employment agency.
- Hire faster
- Candidates of higher quality
- Expert knowledge.
Advantage #1: Faster hiring
An employment agency will cut down the time it takes to fill open positions. It will save you time searching for qualified candidates and sorting through thousands of applications and profiles. The employment agency will handle all of that and only provide the top candidates to you.
An employment agency is able to find candidates faster than you can. Because employment agencies have a large talent pool. You can tap into the vast talent pool that has been vetted candidates by using a employment agency. This will significantly reduce the time it takes to hire.
Advantage #2: Candidates of higher quality
An employment agency will increase the quality of candidates for your employment process. Employment agencies offer a vast talent pool with pre-screened, pre-referenced candidates. This means you only work with candidates that have been carefully vetted and assessed.
Employment agencies are specialists in candidate choice. Agent recruiters are professionals to evaluate candidates. They employ best-practice methods to distinguish real experts from good interviewees.
Advantage #3: Expert knowledge
An employment agency can help you gain specialist knowledge that your in-house recruiters may not have. In-house recruiters are often required to cover a broad range of roles a company may require.
However, many agencies specialize in the employment of people for certain roles, industries, or levels. This means they are more knowledgeable about the job market segments that they target. Employment agencies are able to provide useful advice and valuable insight that will help you hire and find better candidates.
After we have examined the key benefits of hiring an employment agency let’s now look at the cons.
There are Some Advantages and Disadvantages to using employment agencies
Of course, there are down sides to using an employment agency.
There are three main drawbacks to using an employment agency.
- Higher costs
- Assessment of cultural compatibility not available
- Absence of employer branding
#1 disadvantage: Higher cost
An employment agency can be very costly effort. The fees for an employment agency are generally around 20-30% of an employee’s annual salary. If you are looking for a difficult to fill position, the cost of hiring an employment agency could be higher. You will need to pay a fixed cost each time you hire an employment agency.
If you are handling your employment process internally, you can try and evaluate your employment methods. This will allow you to stop spending money on channels and employment methods that don’t work and instead invest it in those that offer the best return on investment. Your money can be used to build your talent pool, which will help you save money over the long-term.
- Disadvantage: There is no cultural fit
Employment agencies cannot guarantee the cultural compatibility of their candidates. The best candidates for a particular role and position can be delivered by employment agencies. They are less at assessing a culture match.
Employment agencies can help you select the right candidate for your open job but not for your company culture or your team. The best employment agencies will go above and beyond to get to know your company’s vision, values, and goals. Agency recruiters won’t have the same knowledge as employees who live and breathe it every day.
Third disadvantage: Inadequacy in employer branding
Employers who use employment agencies miss an opportunity to develop their employer branding strategy and create it. Each step in the employment process offers you an opportunity to present, promote and build your employer choice reputation.
But, if your employment efforts are outsourced to a recruiter, you won’t be in complete control of your employer brand. Your employer brand will be presented to potential candidates by someone. Your candidates will create their first impression about your company using second hand information. They will not be in direct contact with you.
Conclusion: Should you hire a recruiter or do you need to use an agency?
Do you need a recruiting agency to find the best candidates and shortlist them? Do you prefer to handle the full-cycle recruiting process by yourself?
Which is better: Inhouse or Agency recruitment
When is compared with in-house recruitment, using a recruit agency has both advantages & disadvantages?
An employment agency can help find qualified candidates to fill your positions quicker.
However, hiring an employment agency is costly. An employment agency won’t be able to understand your company culture as well as your employees. Employment agencies are not able to help you find the right people for the job. However, they can help you make sure that the candidates chosen are a great fit for your company culture as well as your team.
You must carefully consider your hiring requirements and resources in order to make the right choice and choose the best model for recruitment.
- Are you able to manage your own hiring needs? Are you interested in developing it?
- Are you looking for long-term strategies to recruit or a quick fix?
These questions will assist you in making your final decision regarding using an employment agency.
