The decision to engage an external recruitment agency is rarely an easy one. For many, it is a large expense that comes directly from their own back pocket, or from a budget intended for other resources. Experiences and results can also vary significantly. The outcome; some use agencies for all hires, some only for key personnel, some when they are struggling with their own recruitment methods and some try to avoid agencies like they are a highly contagious illness.
Most leaders and business owners would, of course, understand the importance of hiring the right person.
If you think it’s expensive to hire a professional, wait until you hire an amateur – Red Adair
Unfortunately, no recruiter has a magic wand, using an agency does not guarantee the right person. Once the person starts, the recruiter has limited influence over how successful they will be. While most agencies will offer a guarantee or insurance policy, the responsibility of successfully managing, coaching and mentoring the staff member rests on the leadership team at the centre.
Despite the limited control over many aspects of a successful appointment, a good, experienced recruiter, does provide two significant advantages compared to internal recruitment:
- A wider net
A recruiter can access a larger portion of the market, particularly candidates who are not actively looking, which results in a higher quality shortlist than may have applied directly. They should be ‘qualified candidates’ too – recruiter talk for making sure they are suitable; which saves you time and can ensure great candidates are not overlooked. - Increases chance of securing the preferred candidate
A good recruiter understands their market incredibly well. They know how much candidates are getting paid and what both candidates and hiring managers are looking for. With this information, they provide advice on managing the recruitment process or simply manage it for you. With a strong understanding of the service they offer, a trusting relationship with you and the candidate, they can explain the benefits of working for your organisation and address any reservations in a professional, constructive manner. They are trained to manage the entire recruitment process, know the other opportunities available, the likelihood of a counter offer and how to control them. Recruiters with strong sales skills, coupled with a passion for education and the desire for mutually beneficial outcomes, can be incredibly effective in attracting top suitable talent to your organisation.
So, when should you utilise the services of an agency for permanent recruitment? As the main disadvantage is cost, this is really a commercial question.
The commercial answer is; when the value of having the best person exceeds the recruitment fee.
Tips for getting the most out of a recruiter:
- Remember, recruitment is a service, not a product. A good recruiter provides a good service which should lead to higher calibre candidates.
- Ask them why you should use them rather than their competitors
- Ask them how they plan on filling the position or finding the best candidates. Remember you are getting the best value if they are accessing passive candidates.
- Beware a recruiter who will reduce their fee to win business. Again, recruitment is a service, a good recruiter should be able to justify their fees, no matter how high. If not, why are they charging them in the first place? And how will they reduce their service when they drop them?
- Avoid using multiple recruiters at the same time. Better to engage the recruiter you think is best and negotiate a period of exclusivity. This will ensure your assignment is prioritised.
- Invest some time in developing a strong business relationship, ensure they understand the role, including the challenges, and understand your vision of the organisation. Recruitment is most effective when the recruiter is seen as a business partner or key stakeholder.
- Discuss the position with the recruiter, ask them what they think the main hurdle is.
- Get back to the recruiter with conclusive interview feedback quickly. Be honest with the recruiter and yourself. ‘Maybe’, usually means, ‘No’. Unless you give feedback, the recruiter has no opportunity to address your reservations about a candidate. The recruiter also has an obligation to provide the candidate with feedback.
- Pay your bills promptly within the payment terms. A recruiter will be reluctant to work hard on roles or refill if they have had to chase a debt and may build this risk into their fees with you.