Why do companies pay external recruitment agencies when they can do the hiring themselves?
In candidate-scarce markets (common in STEM fields (science, technology, engineering, math)) there are not enough candidates to go around. Companies turn to job sites to help them fill vacancies, but as recruiters we know that the quality of candidates tend to be poor. The best candidates are already settled in jobs, they’re not looking on job sites.
Because companies experience poor results from their job listings, they have no choice but to invest in other means to find staff, this is where external recruitment agencies shine!
Benefits of External Recruitment Agencies: Why Outsourcing Your Hiring Process Pays Off
Recruitment is a critical function for any organisation, as hiring the right talent can make or break a company’s success. When it comes to finding the best candidates for your open positions, businesses have two options: relying on an in-house recruiter or partnering with an external recruitment agency. Both have their merits, but we’ll be in this blog, we will delve into the benefits of hiring an external recruitment agency and explore how it differs from an in-house recruiter in responsibilities, skills, salary options, branding, and career development.
1. Responsibilities: Expertise in European Technology Talent Acquisition
External Recruitment Agency:
- Specialising in European technology recruitment, these agencies have an in-depth understanding of the tech industry’s specific needs and trends across various European countries.
- They excel in sourcing, screening, and presenting qualified tech candidates with the right skill sets, ensuring that your company remains at the forefront of technological innovation.
In-House Recruiter:
- While in-house recruiters may have a general understanding of the company’s hiring needs, they may lack the specialised knowledge of the European tech landscape.
- External agencies bring focused expertise to the table, ensuring that you have access to the most suitable tech talent across Europe.
2. Skills: Navigating the European Tech Talent Landscape
External Recruitment Agency:
- Recruitment agencies specialising in European technology possess an extensive network and established relationships within the tech community.
- They leverage these connections to identify and engage with passive candidates, enabling you to tap into a broader pool of potential hires.
In-House Recruiter:
- In-house recruiters may have an excellent understanding of your company’s culture and values but might face challenges in attracting top tech talent from outside the organisation.
- External agencies bring specialised skills in candidate engagement, making them highly effective in enticing candidates to consider exciting opportunities in your company.
3. Salary Options: Commission-Based vs. Fixed Salaried
External Recruitment Agency:
- Partnering with a European tech recruitment agency can be cost-effective as most of them operate on a commission-based model.
- You only pay a fee upon successful placement, aligning the agency’s interests with yours to find the perfect tech candidates efficiently.
- This incentivises recruiters to source high-quality candidates efficiently, as their earnings are directly tied to successful hires.
In-House Recruiter:
- In-house recruiters receive a fixed salary, irrespective of the number of candidates they successfully hire.
- While this ensures a stable income, it may not always drive the same level of urgency as the commission-based model.
4. Branding: Wider Reach vs. Internal Focus
External Recruitment Agency:
- Recruitment agencies have a broader reach and connections within various industries, amplifying your employer branding efforts.
- They present your company’s tech opportunities as attractive options for tech professionals looking to advance their careers within Europe’s dynamic tech ecosystem.
In-House Recruiter:
- In-house recruiters focus on promoting the specific brand and culture of the organisation they represent.
- They emphasise the unique selling points of the company to prospective candidates, fostering a sense of belonging and loyalty.
- While in-house recruiters promote your company’s brand, their focus is primarily internal, and they may have limited reach beyond your organisation’s existing networks.
5. Career Development: Diverse Exposure vs. Company-Specific Expertise
External Recruitment Agency:
- Working for a recruitment agency exposes recruiters to various industries, roles, and candidate profiles.
- This diversity of experience enhances their skill set and adaptability, making them versatile professionals.
In-House Recruiter:
- In-house recruiters gain in-depth knowledge of their organisation’s operations, culture, and talent needs.
- They become experts in sourcing candidates that best fit their company’s requirements and values.
Both external recruitment agencies and in-house recruiters have their strengths, but the advantages of outsourcing the hiring process to an agency are undeniable. The specialised expertise, wider candidate reach, and commission-based motivation make external recruitment agencies powerful allies in finding the perfect talent match for your organisation. While in-house recruiters thrive in developing a deep understanding of the company’s needs and culture, external agencies provide a fresh perspective and access to an extensive network of candidates.
Ultimately, the decision between the two depends on your organisation’s specific needs and hiring goals. However, for businesses seeking an efficient, diverse, and results-driven recruitment process, partnering with an external recruitment agency, like Jonathan Rhys Recruitment, proves to be a strategic move that pays off in the long run.