The Main Implications of Using Recruitment Agencies

Recruitment agencies are commonly used by employers to help find and hire new employees. While there are benefits to using a recruitment agency, there are also several cons that should be considered before deciding to work with one. In this blog, we will explore some of the cons of using a recruitment agency, and how they can be solved when finding the perfect workforce for your business.

Cost

One of the biggest cons of using a recruitment agency is the cost. Recruitment agencies typically charge a percentage of the employee’s salary as a fee for their services. This can be a significant cost for you as an employer, especially if you’re hiring multiple employees or high-level executives. This can be a huge blocker in today’s climate as the costs of daily operations continue to rise.

Lack of Control

When working with a recruitment agency, you give up a certain level of control over the hiring process. The agency will typically handle the screening, interviewing, and selection process, which means that you may not have as much input into the final decision. This could add to your costs further, as you may need to start the process over again.

Quality of Candidates

While recruitment agencies claim to have access to the best candidates, there is no guarantee that the candidates they provide will be of high quality. You may end up wasting time and resources on candidates who are not a good fit for the position. This would lead to a spike in training costs to get the output you need from your new employees.

Lack of Understanding of Company Culture

Recruitment agencies may not fully understand your company’s culture or values, which can lead to a mismatch between the candidate and your brand. This can result in an increase in employee turnover, having a worse effect on the overall morale of your workforce, as well as your profit margins.

Lack of Long-Term Relationship

When working with a recruitment agency, you’re only paying for a one-time service. This means that there is no long-term relationship between you and the agency, which can make issues with your employees or future hiring difficult. This is where co-employment could benefit your business, as your Professional Employer Organisation (PEO) stay on hand for any escalations or new hiring requirements.

Limited Pool of Candidates

Recruitment agencies may have a limited pool of candidates, especially if they specialise in a specific industry or geographic location. This can limit the number of qualified candidates that you have to choose from. This is another area where co-employment would be beneficial, as there is a greater pool of talent available, with some PEOs utilising overseas labour.

Solutions

As mentioned above, one of the most successful solutions to these issues is co-employment. By using a PEO (Professional Employer Organisation) to employ staff you will reduce your costs, access a wider range of candidates, and have some talented individuals who are ideal to adapt to your company. In addition to this, PEOs offer a longer-term relationship than recruitment agencies and are there for any escalations regarding your new workers.

In conclusion, while recruitment agencies can be a useful tool, there are several cons that should be considered before deciding to work with one. You should carefully evaluate the cost and quality of candidates, and the level of control you are willing to give up before deciding to use a recruitment agency. Additionally, you should carefully vet any agency you work with to ensure that you have a good understanding of the company’s culture and values and that they are providing high-quality candidates.

If you found this useful, you may also like reading about whether in-house workforces are still effective.