Why do companies use recruitment agencies?

movilogo

What exactly is the role of recruitment agencies? Do they do anything other than just key word searching on CVs?

They charge quite a high fee for finding candidates but companies can save loads of money by getting rid of recruitment agecies altogether - isn't it?

andygb

Companies use recruitment agencies, because they do not have the resources to go through hundreds of CVs. In theory they should be able to match candidates to any given job, but in my experience the staff in recruitment agencies do not have specific knowledge of the areas they are recruiting for. I have been sent to a job by an agency, turned up at 9.00 as requested, and been sent home at 9.15, because the agency did not bother to listen to the requirements of the client, and simply took it for granted that my skills would suffice. Had I been interviewed by the client (It may not have reached that stage), then it would have been obvious.
In another role, I was temping at a company, and interviews were going on (Unknown to me) for the job I was covering. The head of HR asked why I had not put in for the job (After they had offered it to another candidate), and I simply told them that the agency had said that my role was a strictly temporary one.
These are isolated incidents, but yes, I do think that companies could save a lot of time and effort by recruiting themselves.

book12

Besides key word searching CVs, the agency staff call candidates up to see if they are interested in the job. If so, the stafff will put them forward to the companies, and the companies will then choose who to interview. The agency could shortlist candidates to put forward to the company too.

Yes, companies can save loads of money by getting rid of or not using agencies.

cazziebo

If companies did not perceive value in engaging with recruitment companies then there wouldn't be any. There are lots - so someone somewhere sees they perform a useful function.

I have a few vacancies to recruit for at the moment. Two are specialist roles and I'll engage a company who are specialists in that area. I'll pay them 25% of the successful candidates' salary because I expect them to deliver a shortlist to me of individuals who understand our ethos, and have the skills to do the job. These are high level jobs with six figure salaries.

The other positions are more general and I'll probably handle them myself. That's because we are expanding and I'll want to hold on to any good candidates who don't quite make it this time round. The cost of the advertising space will be about the same as what I'd pay an agency, so no real saving in cost, but much more cost in terms of time.

There are dreadful agencies out there. There are also some good professional ones that take time to understand what I'm looking for and send me people who are fully aware of what the role is, what our company do and have the prerequisite skills and qualifications. I have been on the receiving end of the "send six CVs and then harrass with phone calls" type agencies and they don't get my business.

What you have to bear in mind is that agencies work for the client company, not the candidates. Their loyalty is to the client and serving their interests - not that of the candidate. Good agencies will look after their good candidates, however. The good agencies also manage to handle the better jobs, so worth seeking out.

SandC

As everyone else has said above - it's about selection of the right candidate.

Apart from my first job at 19 I have always got my roles through agencies. The employer typically pays 10% of the starting salary and they have tended to only interview 3 or 4 people in the first instance and if none of them were suitable they would search further afield, or even advertise the positions.

Problem is anyone can set themselves up as an agency so many are not very good.

When I was last looking for a position I asked around to find out which agencies particular companies used so that I could register with them. It's a very good reference for an agency to have if they have one or more of the better/larger employers in the area using them. They can only get those clients by being very professional and not sending them just anyone who is available for a post.

Also, people lie on job applications or can't be bothered to look smart for an interview and the agencies can root these out for the employer.

movilogo

If companies did not perceive value in engaging with recruitment companies then there wouldn't be any. There are lots - so someone somewhere sees they perform a useful function.

Just like Estage Agents, some of recruitment agencies are pulling down their shutters, too.

because they do not have the resources to go through hundreds of CVs.

But have money to burn on recruiters who perform no better if their own employees would have conducted the search??

it's about selection of the right candidate

How the recruiting agents, who are often non-technical people, ensure that the candidates they have turned down, were not more suitable for the position?

SandC

Well if they get it wrong the employer will ask them to look harder or simply discard them and go to another agency. It's this trial and error that weeds out the ones who don't have the skills to find the right candidates.

DKLS

movilogo wrote: »

They charge quite a high fee for finding candidates but companies can save loads of money by getting rid of recruitment agecies altogether - isn't it?

Agencies may be expensive, but when compared to advertising costs and the time taken to process up to 300 applications, get distracted by the muppet animations filled in with crayons, then work that down to an interview list, do the first round of interviews etc is a pittance.

I would much rather pay the agency to action everything up to the 2nd interview, which I will do.
A well briefed and talented recruitment consultant is an absolute boon to my company. (They are out there)

movilogo

Depending on circumstances, they can waste more time!

A lot of candidates lie on the CVs and it is often very difficult to detect this non-technical recruitment consultants! While a competent staff will detect it in 5 minutes of chatting with the candidate!

Also, try sending your own CV (by changing name & current employer name) to your own job ads and 99% of the time your CV won't be picked by the agents. Surely, you are not suitable for the job then?

Emmzi

I use agencies because I can't find the time to wade through hundreds of cvs.

Resource isn't always about costs.If I employed someone to do it, I'd have to pay them all the time, not just hire them to look after cvs when I was recruiting. And if I did it, it'd distract me too much from my day job.

I found my last 3 jobs through agency. A lot depends on how you use them. You need to be proactive.

DCFC79

Employers use recruitment agencies as then it means the agency can sift through the applications a sit saves the employer or the HR dept doing the sifting,