Using a Recruiting Firm to Improve Your Hiring Process

February 14, 2024 – With the ongoing talent shortage, organizations of all kinds are facing increasing challenges in finding the right talent. This puts a lot of pressure on the HR team, especially in smaller companies, who not only have to bring in the right skills but also ensure that employees are happy and willing to stay, according to a new report from Randstad’s Doug Hammond. To alleviate this pressure, teaming up with a specialized recruiting firm can bring a host of benefits, including time and cost savings. Randstad explains that this leaves you with more time and energy for other important tasks. The study looks at a few reasons why more and more companies are choosing to partner with a recruiting firm.

Recruitment is a time-consuming process that entails various tasks like posting job ads, reviewing resumes, conducting interviews and coordinating reference checks. Randstad notes that getting each step right is crucial, as a poor hiring decision can significantly affect your finances. A study from Northwestern found that the cost of a bad hire could be at least 30 percent of their expected earnings in the first year.

“Handing recruitment responsibilities over to a recruitment agency gives you and your team more time to focus on your core business,” the report said. “With their expertise and extensive talent networks, these agencies can significantly reduce the time needed to fill positions. Search firms have access to a vast network of candidates, cutting down the time spent on candidate sourcing and initial vetting. This enables companies to find the right talent quicker while retaining control over your recruitment decisions. When working with a recruitment agency you have the final say on new hires, but you won’t need to be involved at every stage of the hiring process.

Securing Skills

Recruiters continue to say that the job market has been growing increasingly competitive in recent years due to a worldwide shortage of skilled workers. And with research predicting a shortage of approximately 85 million workers globally by 2030, hiring managers must cope with a continuing lack of suitable candidates.

While skills gaps are a growing challenge for all employers, they are particularly problematic for smaller companies without the financial resources to compete with large businesses searching for similar talent, according to the Randstad report. “That’s where working with a recruitment company can help,” the study said. “One of the biggest benefits recruitment companies can offer to their clients is access to a large network of vetted candidates. Recruiting firms maintain extensive candidate databases, allowing them to tap into a wide range of potential candidates with different backgrounds and experiences. This gives you access to a wider pool of talent to choose from.”

Flexibility

Flexibility is not just a desirable trait for modern businesses, Randstad explains that it is an essential one. “In today’s fast-paced and ever-changing market, the ability to adapt quickly is crucial for success,” the report said. “This is especially true when it comes to recruitment. By adopting a flexible approach to hiring, businesses can better navigate the ups and downs of their industry, ensuring that you always have the right resources at the right time.”

Related: Choosing Between Temporary and Permanent Staffing

This can be particularly advantageous if you have a fluctuating demand. “Industries such as hospitality, retail, and construction are heavily influenced by seasonal trends, with staffing needs varying throughout the year,” the Randstad report said. “By partnering with a recruitment company, businesses in these industries can easily cover short-term gaps and manage workload fluctuations. Whether it’s hiring additional staff during peak seasons or scaling back during slower periods, a recruitment agency can provide the necessary flexibility. But flexibility in recruitment is not limited to just seasonal industries. Small businesses in any industry can benefit from flexible staffing. For example, startups or businesses experiencing rapid growth may need to quickly ramp up their workforce to meet increasing demands. On the other hand, businesses facing financial constraints or uncertain market conditions may need to reduce their workforce temporarily.”

Streamlined Onboarding

Employee retention is vital to running an efficient HR department considering the time and cost of hiring an employee. While many factors influence turnover, Randstad explains that the onboarding process is one of the easiest to address. Statistics from the Society of Human Resource Management (SHRM) emphasize how heavily the onboarding process affects employee retention. Employees who have enjoyed a positive onboarding experience are more likely to remain at their new position — over 69 percent. Even a strictly standard onboarding process yields rewards, with over 50 percent of employees remaining after three years.

The Benefits of Using an Executive Search Firm
Partnering with an outside recruitment firm provides a range of benefits in terms of time and resources that most companies can’t match, according to a new report from Kestria. Confidentiality, extensive databases, and in many cases global reach are just a few of the reasons to call in a search firm.

On the contrary, Randstad explains that if time constraints frequently cause you to throw new employees into the mix with a sink-or-swim attitude, you may be risking your employer brand along with the new worker.

“If you want to enhance your employee retention, it’s time to improve your onboarding process,” the Randstad report said. “And by working with an experienced recruitment company, you’ll receive expert guidance to help your program succeed. A good recruiting firm can take over these and other onboarding duties for you so you can focus on other areas of workforce enhancement. They can help guide new recruits through each step of their employment journey, from acceptance to the end of their probation period and beyond.”

Job Market Insights

HR and recruitment is a fast-moving field, with innovations emerging all the time. By staying on the frontline of change, you can gain a competitive advantage and become a modern, agile business, the Randstad report explains. “Recruiting firms are well-versed in the latest market trends, including shifts in demand for specific skills or qualifications, the report said. “They can offer your small business valuable insights into the current job market landscape, salary benchmarks and effective hiring strategies. This information can empower you to make well-informed decisions regarding compensation and benefits for your employees. Moreover, recruitment agencies can also guide you in developing effective hiring strategies tailored to your business needs. With their deep understanding of the job market, they can help you identify the most effective channels to reach potential candidates. By optimizing your hiring process, you can attract high-quality candidates efficiently and minimize the time and resources spent on recruitment.”

In conclusion, Randstad says that partnering with a specialized recruiting firm can be a game-changer for companies facing the challenges of the ongoing labor shortage. “By teaming up with an agency, you can save time and resources by outsourcing the time-consuming tasks of recruitment,” the report said. “Additionally, recruitment agencies can ensure compliance with labor regulations, provide access to a wider pool of skilled candidates, and give you the necessary flexibility to adapt to changing demands.”

Related: How to Choose Your Executive Search Partner

Contributed by Scott A. Scanlon, Editor-in-Chief; Dale M. Zupsansky, Executive Editor; Lily Fauver, Senior Editor – Hunt Scanlon Media