What is the alternative to Recruitment Agencies?
In-House Recruiters VS Agencies
As a company experiences growth, both in terms of revenue and its customer base, the necessity to hire more staff to support that growth invariably increases.
Whilst company growth is an exciting time for any business owner, attracting and hiring the right people who add value, and who can assist with the growth of the company, can be a challenge to an already busy HR or hiring team.
Recruiting via traditional, more manual-based recruitment methods can be overwhelming during periods of hiring and will often lead to an increase in time per hire and cost per hire. The cost and time elements are a problem on their own, but the extended time that it takes to hire can cause bigger problems for HR, as lengthy hiring times also run the risk of your business missing out on the best talent.
Therefore, it’s important that those responsible for hiring have the right tools to attract, sift and interview candidates as efficiently as possible. The pressure to optimise the recruitment process often results in many companies turning to recruitment agencies to source their candidates, however, a reliance on agencies comes with its own issues.
With the average agency fee for a permanent placement ranging between 15-20% of a candidates annual salary, dependency on agencies can be an incredibly expensive resource to a business, especially if they hire on a regular basis, throughout the year.
Hiring new staff through a recruitment agency might be convenient but how can you tell that you are also getting access to the best talent?
For many recruitment agencies, they find themselves in a position where they are competing with other agencies to fill a specific role. This can often result in their focus being to fill the position as quickly as possible, for the best possible price, to prevent other agencies from receiving the commission cut - leading to hiring a candidate who, on paper, looks good, but is poorly matched in terms of culture fit.
Unless you are using a recruitment agency for the purpose of headhunting, many agencies utilise the same job boards and candidate databases, so even if you reach out to a number of agencies, the talent pool is potentially limited. Although on many occasions, a recruitment agency will provide you with a great candidate, you will miss out on one of the most enlightening parts of the hiring process: getting a good view of what talent is available on the market. An agency will only present a handful of candidates to your business for consideration, but when you manage the hiring process yourself, you get to see all of the talent that is available, providing the opportunity to make multiple hires or to store potential candidates in a talent pool.
Making the move to in-house recruitment
Moving away from, or reducing your reliance on recruitment agencies can bring significant cost-savings and operational efficiencies to your organisation. An in-house solution can be daunting at first, particularly for organisations that have relied heavily on agencies, but taking control of your hiring process will add an array of benefits that make growing your staff count, an exciting time.
By making the move to an in-house recruitment solution, you have the control to decide where your vacancies are displayed and how they are displayed, in addition to presenting them on your careers page for further branding. Having control over your advertisements allows you to choose what best works for you to attract the right candidates. All of this can be managed through your very own Applicant Tracking System.
Through an Applicant Tracking System (ATS), your business will be able to manage all candidates from a centralised database. With all candidates in one place, your business can easily search, filter and rank applicants, allowing you to select the candidates that meet your requirements. Furthermore, you will be able to build a talent pool consisting of applicants from different recruitment campaigns, instead of spending more money on recruitment agencies. You can look at potential candidates from your existing talent pool, allowing you to efficiently find candidates that are already interested in working for you; therefore minimising the lengthy process of recruiting from scratch.
Moving to an in-house recruitment solution can empower your recruitment team to find the best candidates for your business without introducing any additional administrative challenges. Regardless of the size of the hiring campaign, an Applicant Tracking System will make it a manageable process, especially if you consider add-ons such as Killer Questions and Skills-Based Tests to help strip out the ‘dead wood’ from applying.
Take back control of your hiring process and hire candidates that are right for your business and your culture to help your company continue to grow.
For further information about the benefits of taking your recruitment in-house with recruitment software, why not call one of our consultants on 01509 236 434.