The Ultimate Recruitment Agency Buying Guide
This ultimate guide to choosing a recruitment agency will prove to be your biggest helping hand. It will help you find a suitable recruitment agency that fits both your recruiting needs and your budget. Later in the article, we’ll list 5 reasons how a recruitment agency can help your business. Along with some helpful recommendations for choosing a relevant recruitment agency. Click here to see Best HR Software in Pakistan.
What is a Recruitment Agency?
A recruiting agency or recruiting agency is a consultancy that provides recruitment services for another company (client) based on their HR (Human resource) needs. In simple words Recruitment Agency is an intermediary between Employers and job seekers. They charge a flat fee or percentage for this service.
Recruitment companies serve as a platform to connect job seekers with companies looking for suitable employees for a respective position. Recruitment agencies are paid to find employees for various organizations that fit a particular job.
Why should you hire a recruitment agency?
Today’s job market is competitive and hiring costs are sky high. It’s really hard to find the ideal workforce with a conventional recruiting drive. Recruitment agencies are specialized in the recruitment process. Therefore, choose a recruitment agency to find the perfect match for a position with the help of an expert recruitment agency.
Here are 5 reasons why a recruitment agency is worth a try.
Reduce rental costs. Save all the recruiting hassle by simply outsourcing it. According to one study, it takes about 8 to 26 weeks for a new hire to be fully productive. And the costs incurred by the company during this period add to the “rent costs”. In today’s job market, recruitment costs are much higher. Never mind the time and effort put into running a successful recruiting campaign. So you want to make sure you find the right candidate to avoid losing money when hiring.
Save a lot of time. Recruiters already have access to quality staff. You send a demand and they give you the right man for the job.
The whole recruiting process can take a lot of time and turn out to be quite stressful. There are two ways such agencies can save you time. First, recruitment agencies will save your candidates time. Second, their job is to recruit. Therefore, these professionals have long lists of candidates who may be suitable for a particular job. Hence, it will pressure the hiring process and give you accurate employees in a very short time.
Find the best candidate. Third-party recruiters have strong connections with industry experts and other HR, helping them find Human Resources that aren’t readily available.
Recruitment agencies have tons of applications from people who specialize in various fields and industries within their reach. This gives the companies another reason to contact recruitment agencies for better quality hiring.
Background research. Recruiters specialize in thorough background checks and screening. And they also already have most of the essential information about a candidate.
For almost every business, one of the services that recruitment agencies have to offer is that they provide “extra security”. All reliable recruitment agencies give you a “guarantee period”, during which your new employee will remain in your company for a certain period of time under observation. If that new candidate is fired or leaves before the warranty period expires, recruiters will either give you a full refund or find another suitable match for the position. In short, such agencies help you find and retain the right candidate in less time and money.
Outsource HR to experts. Today is the era of specialization. Whether it’s a business process, you need knowledgeable people. Third-party recruitment agencies are experts at this, so they can do the job like no other, provided you give them the right requirements. When it comes to new businesses and start-ups, they don’t have efficient internal recruiters. Such companies do not have enough knowledge and resources to find a suitable candidate for themselves; by the way, they rely on recruitment agencies to get better results for them.
How does Manpower Recruitment Agency work?
A third-party employment agency or a recruitment agency acts as an intermediary between the employer (corporate) and the job seeker. Employer/Company shares the requirement, with recruiter, according to their staffing needs. Recruitment Consultant then finds the best staff for that specific position, for a (fixed or percentage) recruitment service fee.
Tip: Always check the legal status and make sure you are working with a
Overseas Employment Promoter or Recruitment Agent Approved by BEOE
What is the average compensation for a recruitment agency?
The cost of a recruiting agency to a business will be determined by the position to be filled. Standard hiring costs typically range between 15% and 20% of a candidate’s first-year salary, but can be as high as 30% for difficult-to-fill positions.
The main question employers want to know is the cost of this process and who can afford it? According to Deloitte’s Bersin, the average cost to fill an open position internally is about $4,000. But we have to keep in mind that this is an average estimate, so it will differ depending on the role, strategies used, etc. The brokerage fee also depends on the “position” you are looking to fill. Most recruitment agencies have different rates that depend on the following things:
Number of people to hire
Type of function
The salary for the position
The type of rental (permanent or temporary, full-time or part-time, etc.).
In general, the process by which recruitment agencies calculate their compensation is by calculating a percentage of the new candidate’s annual salary. According to “Undercover Recruiter,” most recruiting agencies charge 15% to 25% of the employee’s total income in the first year.
However, for difficult-to-fill or high-ranking positions, recruitment costs can also be as high as 50%.
For an easy understanding of how benefits work, here’s an example from the resume library:
Junior Role – Advertised Salary $9,000
Brokerage fees would be about 10%, so you would pay about $900 per rental.
Executive Role – Advertised Salary $30,000
Brokerage fees would be around 15-20%, so you could pay from $4500 to $6000 per rental.
Types of Recruitment Agencies
There is a wide range of different types of recruitment agencies on the market. Recruitment agencies offer various services and come in different shapes and sizes. We will discuss them below
The best way is to look for the most common types of agencies that will help you in a better way and that will be able to meet all your recruiting needs effectively. Therefore, The different types mentioned below will make it easy for you to get to know different types of recruitment agencies.
Type 1: General Recruitment Agencies
General recruiting agency is the kind of agency that focuses on a particular field. Their main focus is to hire someone who has specialties for a specific position. For example, healthcare recruitment, hospitality recruitment, retail recruitment, financial sector recruitment or technology recruitment. Another name for general recruitment agencies is contingency recruitment agency.
Contact these types of agencies if you need an employee for a mid-level position in an industry.
Type 2: Secondment agency
Staffing agencies are another category of agencies that only focus on hiring employees for temporary positions. Another name for employment agencies is employment agency.
Contact such agencies when you need to hire seasonal candidates for a temporary project or when you need to fill the position of a full-time staff member on leave (long-term sick leave, maternity or paternity leave).
Type 3: Executive Recruitment Agency
Executive recruitment agencies have expertise in recruiting executives. These firms are known by many names such as Retained search firm or Executive search firm; sometimes referred to as a boutique recruitment agency.
Contact these types of agencies whenever you need an employee for your top or C-level positions.
Choosing a recruitment agency; Checklist in 4 steps
Below is a 4 step procedure that will make it easy for you to choose a recruitment agency based on your recruiting needs and your budget
Step 1: Determine your recruiting needs:
The first and most basic step for any company before contacting a recruitment agency is to clearly state their recruiting needs. Answer questions such as how many employees are you looking for? For which position are you looking for an employee? Is it entry level or board level? Temporary or permanent? Do you want an employee who is skilled in a particular field or who is an all-rounder? It is important to define and understand your own recruitment needs clearly and in detail in order to find the best recruitment agency for you.
Step #2: Choose the Right Type of Recruitment Agency:
This step becomes very easy if you followed the first step correctly. Therefore, The second step is to look for a suitable recruitment agency. This step allows you to shortlist some agencies that serve your purpose.
If you need some temps, go to a temp agency. If your senior leadership position needs to be filled, please contact the Executive recruitment agency. For everything else, your wise choice should be a general recruitment agency.
Step 3: Check Affordability:
Once you’ve found the best recruiting agency that fits your needs, look for its affordability because if their rates don’t suit you, then of course that agency is of no use. Most agencies have all the basic information listed on their website. But to get a clear picture and detailed idea, you need to contact them. You can list all relevant agencies and ask them about their services, prices, terms, etc.
Step #4: Check the Expertise:
If you have followed all the previous steps carefully, this step will have you shortlisted the top three recruitment agencies. You will have to do some homework, seek out the expertise of chosen agencies and compare.
Look for their warranty period, conditions and customer list. Study their clients and post candidate testimonials (for example, watch great videos with client testimonials from Manila Recruitment agency). Social media plays a big role, see if they are active on social media, their membership in professional associations. Also, look for their status on top recruitment agency lists and review sites from various sources.
Additional suggestions for selecting the finest recruiting agency
Also check out some additional steps that will help you find the best recruitment agency in Pakistan.
In the upcoming blog post, we will discuss the disadvantages of using a recruitment agency. So make sure to stay connected with Teleport Manpower Consultant. Like our Facebook page and follow us on LinkedIn. We are ISO Certified Foreign Employment Promoters and Recruitment Consultant in Pakistan. See also HR Services in dubai.