A good number of job ads I read on LinkedIn state ‘No Agencies Please!’
The apparent reason for this is businesses are trying to save money with costs driving up post pandemic. However, I wonder if there is more to it than this?
Have agencies got to the point where they are struggling to add value for the fees that they charge?
Let’s look at the pros and cons of Recruitment agencies;
Cons of using an agency
- Cost is high compare to the service they provide (not all agencies)Some agencies just advertise and search job boards (companies can do this for less cost)
- Lack of understanding of the business
- Agencies have a high turnover of staff, meaning businesses don’t have a consistent point of contact
- Some recruiters don’t listen to what the client wants and therefore becomes a CV sending service
Pros
- Manage the whole process saving business time and money
- Can be an extension to your company if briefed effectively
- Long term partnership/Trusted advisor
- Temp/Interim solutions can be fully managed including payroll
- De-risking the hiring process and manage changing legislation (IR35)
- Offer management, especially in this current market with candidates reluctant to move on due to uncertainty
- By partnering with an agency and will continuously talent pool for you
- New ways of recruiting and using new technology to save time to hire
There seems to be a disconnect at the moment, and recruitment firms (not all) need to innovate and clearly demonstrate value add in relation to cost (if this is the main issue for companies).
Some of the innovations we have seen have been;
- Video profiling
- Different pricing strategies (subscription based)
- Recruitment tech, sourcing AI, intuitive CRM’s
- Onboarding programmes
- Offering a tailored service to each client, not a one size fits all service
- Different commission structure, focusing on value add and not making money from placing people
- Consultancy services and Coaching
My thoughts are recruitment consultancies need to be more ‘consultative’ and become more of an extension of an organisation that adds value across the whole hiring and talent landscape. Quality agencies are required more than ever, in this candidate short market.
There is a huge amount of talent in this world sat in the wrong seat. Our job is to work together and put them in the right seat.