August 12, 2024 
It happened. Your best worker has handed in their resignation – the clock is ticking – the countdown is on. You need someone to replace them, but who? Where do you even begin?
The hiring process is a laborious task. Depending on your industry, your candidate requirements, and the role, it can range from a week to seven months for C-level positions. In addition, there is the added issue of it currently being a candidate-driven market. Candidates call the shots, and it is up to you to entice them.
Furthermore, the current skills shortage in the job market makes it even more challenging to attract top talent. According to recent reports, 70% of employers globally are struggling to find suitable employees for their job vacancies, and nearly 40% of leaders say workforce skills gaps are getting worse. In Australia, 36% of occupations were in national shortage in 2023, with significant shortages in sectors like health, engineering, and trades.
There are many factors to consider when hiring. You need to be aware of industry salary averages and expectations, think about what kind of candidate you want, and, more importantly for your bottom line, determine how much time you can dedicate to this process without hindering your company’s workflow and productivity.
If handling all of this on top of everything else feels overwhelming, this is when you might turn to a recruitment agency. If we stripped it to its bones, a recruitment agency matches an employee to an employer. However, a recruitment agency does so much more. The benefits include time saved, better alignment, competitive edge, and reach. Additionally, recruitment agencies possess specialist recruitment knowledge, offering valuable market insights, enhancing employer branding, and can lead to significant cost savings.
Benefits Of Using A Recruitment Agency
1. Time Saved
To get the best employee, you need to invest your time. As mentioned earlier, time can vary dramatically depending on multiple factors. Whatever end of the spectrum you are on, time is going to be spent – you are in control of how much. The benefit of using a recruitment agency is that they can take that burden off your shoulders. They minimise time spent by you, undertaking the numerous and necessary tasks required to select an ideal candidate.
A recruiter being a third-party also helps you stay realistic and can act as a time-keeper in a sense, letting you have a higher chance of getting the most qualified candidate. 57% of Australian HR managers concur, stating that a lengthy hiring process has resulted in them losing a qualified candidate to another opportunity. Time and money are inextricably linked. It can be difficult, even impossible, to balance one with the other in the hiring process, without external help.
So how does a recruitment agent help, besides taking on those manual tasks? A way to look at it is that a knight’s quest can at times be no different to a fool’s errand. Clarity is what a recruiter can help you find. There is always going to be a dream employee in your mind. However, if you cannot differentiate between what is essential to your company and what would be an added bonus, you are going to find yourself in one of two scenarios:
– A candidate who fits all the requirements on paper but does not suit the company culture
– No candidate at all
A recruiter helps you understand what is out there in the market and what is essential to the role, and what isn’t.
In addition, time is saved in regards to filtering. A recruiter plays as the middle-person who ensures that the candidates you see are closely aligned to what you require. With the average corporate job posting receiving 250 resumes, it’s not surprising that a study by MRI Network found that unqualified, junk resumes from job boards were the most common issue for 23% of employers, when it came to finding qualified talent.
2. Better Alignment
If I asked you to describe yourself, you wouldn’t be alone in struggling just a bit to figure out what to say. However, if I asked you to describe a colleague or a friend, you would more than likely have a much easier time describing them. An external point-of-view can help you identify and conceptualise what you and your company need. Company culture is an incredibly important factor to consider. Someone could have all the requirements, but if they can’t resonate with your company’s ethos or are unable to cooperate or fit in with their team, this will not be a sustaining relationship.
A misalignment between your brand and a candidate is a serious issue. Values are extremely important, they don’t need to match perfectly between employee and employer, but if they are conflicting – it will be costly. According to the U.S. Department of Labor, the cost of a bad hiring decision could be up to 30% of the individual’s yearly potential earnings. A recruitment agency can prevent that misalignment from happening through understanding your company and vetting candidates.
Recruitment agencies interview and assess candidates prior to short-listing them to be viewed by a company. A two-step process involves, firstly, an interview which will let recruiters assess a candidate’s competency for the role based on their previous experience. Secondly, skills tests and psychometric assessments are employed. Psychometric assessments are designed to measure intellectual capability and their personality traits in relation to the position. This type of in-depth vetting exponentially increases the chance of a better company fit.
3. Competitive Edge
We are in a candidate-driven market. Candidates have the upper-hand which leads to high competition between companies. The pressure is on, and recruiters can help significantly. According to Zippia, 89% of applicants accept a job faster when contacted by a recruiter.
Another big benefit of using a recruitment agency is the knowledge and connections they possess. A recruiter’s job hinges on connections and a large candidate pool. A recruiter’s connections can give you a competitive edge when attaining top talent. They can provide you with salary guides and give you market insight so that your company can get the best talent – before other companies.
In addition, C-level hiring is especially difficult without a recruitment agency. C-level candidates are one of the hardest groups to reach and to place. The candidates themselves don’t have time to actively job search, and it’s especially difficult for hirers to find and identify good ‘potential’ c-level executives that aren’t at that level yet. It’s important to hire a candidate based on their history, leadership qualities, personality and their ability to grow into the role. The higher and more niche you go, the smaller the candidate pool becomes, and consequently, the harder it becomes to find the right talent.
Recruitment agencies have the ability to find talent that is not necessarily obvious. Having a candidate that has years of successful experience in the c-level sphere in a different company does not necessarily make them a good fit for yours. This is supported by Ron Johnson’s (former Apple Retail CEO) 17-month tenure at JCPenney. Although on paper Johnson seemed to be what JCPenney needed in regards to revitalising their image, he was wholly unsuccessful. He failed to understand the company’s culture, brand and couldn’t differentiate between his Apple customers and JCPenney consumers.
A recruitment agency identifies a candidate’s value and can take into account what they can offer as a means of growth for your company. A recruiter has the knowledge and time to consider that. Their connections with senior people in the industry assist significantly in discovering hidden talent – talent that your competitors may not have considered, or even know about!
4. Reach
A big problem we have at the moment when it comes to hiring, which is a symptom of a candidate-driven market – is passive talent. So what do I mean by that? Passive talents are those that are currently employed, not looking for work, but would accept a good job offer. Not the easiest to find and they account for a massive 70% of the market.
However, they provide the most opportunity for you. As they aren’t actively job searching, you won’t have to compete with other companies. A recruiter can significantly help with reaching those hidden talents . As it’s their job to be aware of current and upcoming trends and news within the industry, they will be able to source talent that you may never have even considered.
In addition, recruiters within the industry have amassed a massive pool of high-quality candidates. As mentioned earlier, a good recruitment agency establishes good, long-lasting relationships. Having someone, in this case a recruiter, who already has a rapport with the candidate, you are more likely to reach them. We as humans don’t like to delve into the unknown; having a mutual acquaintance can be assuring, and makes us more likely to consider and accept an offer or at the very least, a meeting.
5. Compliance and Legal Knowledge
Recruitment compliance involves adhering to a complex array of employment laws, ethical standards, and fair hiring practices. This ensures that your hiring process is not only effective but also legally sound. Here are some key aspects of recruitment compliance:
– Adherence to Employment Laws: Recruitment agencies are well-versed in local, national, and international employment laws. This includes laws related to equal employment opportunities, non-discrimination, and workplace safety. For instance, in Australia, agencies must comply with the Fair Work Act 2009, which governs workplace relations and ensures fair treatment of employees.
– Preventing Discrimination: Compliance ensures that no job applicant or employee experiences discrimination based on nationality, ethnicity, gender, age, religion, or disability. This is crucial for fostering a diverse and inclusive workplace. For example, the Equal Employment Opportunity (EEO) laws in Australia protect individuals from discrimination during the hiring process.
– Protecting Data Privacy: Recruitment agencies are responsible for safeguarding candidate data. This includes complying with data protection regulations such as the General Data Protection Regulation (GDPR) in Europe and the Australian Privacy Principles (APPs). Ensuring data privacy helps build trust with candidates and protects the organisation from legal repercussions.
– Legal & Ethical Hiring Practices: Agencies ensure that all hiring practices are ethical and transparent. This includes conducting background checks legally, providing clear job descriptions, and ensuring that job offers and contracts comply with legal standards. Non-compliance can lead to severe penalties, legal disputes, and damage to the organisation’s reputation.
– Market Knowledge and Salary Benchmarks: Agencies provide valuable insights into market trends and salary benchmarks, ensuring that your job offers are competitive and attractive to top talent. This knowledge helps in making informed decisions and staying ahead in a competitive job market.
– Reducing Legal Risks: By ensuring compliance, recruitment agencies help reduce the risk of legal issues that can arise from non-compliance. This includes avoiding fines, lawsuits, and other legal challenges that can be costly and time-consuming.
Leveraging the compliance and legal expertise of a recruitment agency can ensure that a business’s hiring process is fair, transparent, and legally sound. This not only protects your organisation from legal risks but also enhances your reputation as an employer of choice.
Conclusion
I’m not going to lie, the idea of using a recruitment agency is a contentious topic, controversial even. Everyone has an opinion, and usually it’s either one extreme or the other, which is usually spurred on by past experiences. As with any industry, there are good and there are bad apples.
However, it must be said that recruitment agencies are very powerful tools in attaining talent. They have a wealth of knowledge that can be and should be utilised by your company. Their job is to find what you’re looking for and match it with someone who is a Good Fit for your organisation. They are there to help. To not even consider a recruiter or agency to help you, you are shutting the door to many possibilities – most that could have been an even better option for your company.
Need expert help with your recruitment needs? Contact us today to explore how we can support you in finding the best talent for your team.
