5 issues SME’s face with recruitment agency hiring

June 22nd, 2016

As an SME there will come a time when it’s necessary to expand your business and this means you will need to start thinking about recruitment.  This can be a minefield if not experienced and you can easily be led down the wrong path. So this is our 5 SME issues with recruitment agency hiring

There are many forms of recruitment available, how do you decide what’s best for you?  You have recruitment agencies, Direct Job Boards, Press, direct applicants through your website and many others!

With so many options this can make a complicated landscape, especially when considering the wildly varying costs and the fact that before you take the plunge you aren’t always able to know the likely return on your investment (ROI).

Knowing which options are best can be a complex situation.  Recruitment agencies may seem like the simple solution, after all they do all the work for you, don’t they?

Some typical issues when you rely on recruitment agencies:

1. You have no control over the job advert or the selection process

Once a job order is taken from the client, the recruitment agency’s aim is to get the widest possible number of people interested in the posting. This is what increases the amount of applicants they can sell to you. Simply, the more candidates, the greater the chance of making a placement and ultimately getting a commission. The result is a rewritten job description, that is very vague, keyword-filled, and really useless for actually trying to find a candidate to fill your position.  A mile away from the actual job description you gave initially.

2. Recruitment agencies take all the decision making away from you

The recruiter may not be aligned with your ideas about the ideal candidate and may screen out candidates who you would really like to see. They may believe that you would reject them and simply not send people, or they may send the really good candidates to other people who are going to pay them more. You only see the candidates that they choose for you. Does the recruiter know your business best? Can recruiters be trusted to make the right decision, in your best interest.

3. Agencies work for the candidate as much as for you. This means they coach the candidates to answer interview questions correctly and will tweak CVs so that they better fit your job

In order to make sure that you are likely to interview and hire their candidates agents will often rewrite details in order to best present them to you. They will prepare the candidates for interviews and do everything in their power to make sure that the process goes well. It’s important to remember that the agent will try and reduce your expectations of whats available in the job market and also try and get you to increase the salaries as their commissions are dependant on the salary you offer.

4. Agents minimise the amount spent on your job in order to boost profits

Agents will advertise your role with their branding in order to promote their agency and will not tell candidates which company they will be working for. An important part of job advertising is representing your employer brand however agencies will never do this for you as they want to keep their clients secret and retain the option to propose candidates to which ever client is prepared to pay the most. If you have negotiated a low agency fee percentage, you will often not see the best candidates at all. They will either not be attracted to your roles due to the poor media coverage or the agent will channel the best people off to their other clients who pay more.

5. Agents require you to pay hiring fees every time you hire a candidate

Although a typical campaign may generate a large number of candidates for your role, should you wish to hire more than one person, a recruitment agency would make you pay again each and every time you hire another candidate. Once you are dependant on the agency, they will be building up a pool of talent in your industry and then reselling it to you for large profits. 3 hires for the same role in the same location equals 3 times the fees.

At simplified we represent employers and not the candidates they attract. This means Candidates are yours.  We have a commitment to helping you attract the best talent at the lowest possible rates, using as many sourcing channels as possible.

We have no incentive to drive up wages. Your rates with us are based on your media needs not your candidates salaries.

Working with us helps you avoid all the above risks and allows you to start developing your own pool of industry talent. Talk to us today on how we can help your business.

 

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If you are interested in learning how you can use advertising to avoid agency costs, download our free guide.

 

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