What Do Recruitment Agencies Do?
These agencies help companies fill positions by linking them to job seekers who are qualified for the positions. They are more or less a market place for employers and job seekers. A lot of agencies have a database of job seekers who they readily match with available job opportunities based on a candidate’s qualification for the role.
Based on this description of what they do, it is clear that they serve both employers and job seekers. This makes them a very important part of the labor market value chain. See a concise explanation here.
Why Do Companies Use Them?
There are a number of reasons why a lot of companies use these agencies. Some statistics seem to suggest that up to 90% of companies use them. While this figure may not be verifiable at this time, we can simply agree that a lot of companies use them. These are some of the reasons why these companies prefer to hire through agencies:
Faster Hiring Process
If a company were to fill vacant positions through in-house hiring, it will first have to advertise the position and then allow some time for applications to come in. It will then sort through these applications to short list those that will be invited for interviews. After this is done, it will then go through the different interview processes to select those who will fill the positions. Regardless of how fast they go about this, the entire process will take weeks and also costs a lot of money, time and human capital.
On the other hand, if they choose to hire through an agency, the process will take a lot less time and they will not need to expend all that time and human resources. The agency will simply go through its database to find the most suitable candidates. This process will be a lot faster for the company.
More Cost Effective Process
From the description in the point above, there will be costs associated with every stage of the process including lost revenue that will result from expending human resources on the process. By simply paying a hiring agency to fill the position, all these expenses will be avoided. Besides, the hiring agency’s fees can never be as high as what it would have cost the company to hire through an in-house process.
Increased Hiring Efficiency
There are two aspects to this. First, hiring agencies have the expertise to quickly go through the selection process. It will be an expensive venture for a company to try to replicate such level of experience and skill in-house. They can simply access this by paying a small fee compared to the value they will be getting.
Second, there are cases where the roles that need to be filled are specialized ones which requires special care to be taken in the hiring process. Top People USA recruiting company takes such tasks seriously. They will assign experts to handle such selections. If a medical expert handles the recruitment process for a medical position, the chances of filling the role with a qualified candidate will be much higher.
Another important reason why many companies love working with agencies is the guarantee they offer. Many of these companies will have an agreement that whoever they present to fill a role will not leave that employment for a minimum length of time. Should this happen, the agency will refill the position or refund the fees they were paid for filling the role. This is a guarantee that many companies find reassuring.
Why Do Job Seekers Use Them?
Just as companies enjoy a number of benefits from using recruitment agencies, so also do job seekers. Let us look at some of the benefits they enjoy.
Free Recruitment Service
Job seeking can be a difficult and demanding process. An agency however makes this process easier because rather than having to search for available jobs, the available jobs are brought to you. Best of all, it is done free of charge.
Access to More Job Opportunities
An agency has access to more jobs than you may ever be able to know exists. Not all jobs are advertised in the public domain. The agency’s contacts in the labor market will keep them abreast of available opportunities and they will simply match them with the qualified candidates on their list. This makes the process pretty easy for the applicant.
The points listed above are some of the benefits that companies and job seeker enjoy when they use staffing agencies. You can read about the entire process here: https://money.howstuffworks.com/business/getting-a-job/employment-agencies.htm.