Working with recruitment agencies

February 7, 2008

I have been in my current role for a few months now, and prior to this I worked in a HR capacity in the non-profit sector. There, attracting candidates was a matter of placing an advert in the local paper or on a specialist website, and literally hundreds of applications flooded in, a great many of which were good quality. I really took this for granted as the normal way to recruit candidates.

Now, working in the private sector in an IT based company, things couldn’t be more different. It must have been a combination of a more open labour market plus a more traditional approach to job searching that made my previous recruitment activities so effective. The labour market for candidates with IT and web-based skills is extremely tight, and unfortunately for my company’s bank balance, most job searchers go straight to a specialist recruitment agency to find their next role. So this is where I now source most of my new employees.

I hadn’t had much experience of working with recruitment agencies. My opinion was that they were very expensive for the service they provided – and I still feel this to a certain extent, although now, having experienced difficulties in recruitment, I’m starting to appreciate the savings in time and hard work that can be provided. I’m also becoming more “agency-savvy”. I came into this industry fairly naive and trusted everyone. However there are a number of issues that can arise when working with agencies that you need to be aware of; so that you can spot the ones that are only in it for the money – and build up effective working relationships with the others. Here are some tips that I have developed from my recent experience:

  • Remember that recruitment specialists work on commission: they are sales people. Don’t let them bully you into interviewing a candidate or offering a position if they are not right for you. In a recent CIPD survey (available at www.cipd.co.uk), 45% of respondents felt that agencies focus on making a sale rather than delivering the best candidate. I had one recently who persuaded a candidate to phone in sick for work so that they could come to an interview earlier – not because I wanted them earlier but because he wanted to get his commission quicker – I was not happy!
  • Find out what they do for their money – some will just search the major job sites such as Monster for CVs and forward them straight to you (which you could do yourself if you had the time). You need the recruiter to understand the role completely and pre-screen candidates thoroughly before sending to on you; otherwise they’re not taking much of your work away. Good recruitment companies will hold an interview with each candidate prior to sending their CV; this results in a lot fewer candidates but they’re more likely to be of the right calibre. If a company is based too far away to do this they should still carry out a thorough interview over the phone.
  • Try to meet your agencies face to face. Ask them to come to visit you at the offices where the employees are going to work – they’ll have a much better idea of the atmosphere and culture, as well as the exact location of the workplace; and will be able to describe this better to potential candidates. It’s also much easier to develop a good relationship with someone you have met.
  • Make time to clarify expectations and ensure there is a clear understanding of what is required on both sides. The more time you spend up front discussing a role, the better chance the recruiter has of finding exactly what you’re looking for. Also – be honest with the feedback on each candidate; the clearer you are about why they were not right, the closer the next offering will be to the mark.
  • Don’t be afraid to haggle over the fees. If there’s a chance of building up strong ongoing relationships for future recruitment needs, the agency will be able to offer specialist rates. However, don’t forget that cost isn’t everything – what you need is value for money and this might mean a slightly higher fee.
  • Make sure you read the terms and conditions: These will include any refund details if the employee does not work out, as well as any exclusivity requirements. You need to know where you stand with every aspect of the relationship.
  • Test out what the agency tells you: ask candidates what they have been told about the role when they come for an interview, and double check their salary expectations – I have been burned by this particular issue a couple of times.

The CIPD is working with the Recruitment and Employment Confederation (REC) on a research project to investigate the relationship between HR and recruitment agencies; and will publish guidance on this relationship as a result. This is something I will look forward to seeing in the next few months.

Comments

2 Responses to “Working with recruitment agencies”

  1. Office space on February 7th, 2008 8:05 pm

    I have had very recent problems with similar issues due to what I call a weak recruitment company.

    A general lack of interest in my own company from them caused lots of problems with staff - in one case an employee left after just one day because of a lack of effort and information from the recruitment agency.

    The list you have provided above is exactly the right way to go before agreeing to work with recruitment agencies and their sometimes pushy sales-esque staff.

  2. johnysmith on March 13th, 2008 9:01 am

    There is not a single requirement to enter the recruitment industry. In most countries, an ex convict with no management experience and no recruiting experience can do so.

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