Recruitment agencies can be a viable option for hiring quality talent into your business. There are some important factors you should consider though, before engaging with a recruiter or headhunter, in-order-to get the best value for your money.
There are two distinct and separate parts to hiring; sourcing, and recruitment.
Sourcing is about understanding the talent in the market, who is qualified, interested, and available.
Recruitment is about convincing the best talent that your business and team are who they should spend their next chapter of their career with, and how they will be remunerated.
A good recruitment agency will tell you their value lies in the recruiter phase. The negotiation, the advice, the seduction to bring great talent to the hiring table. This is true. Sourcing and finding talent is not the hard part, and if a recruiter tries to sell you on the basis that they have the biggest database, run. The internet is your database.
Recruiters or headhunters tend to work in two ways; commission, or hourly rates.
Commission is typically a fee for placement, and can range from 10-25% depending on location and difficulty of role. Commission based recruiters may also ask for payment to be split into three tranches, beginning, shortlist, and hire. If you are going to use a commission based recruiter, be sure that they help mostly with the recruiter phase and can clearly outline how they will add value here.
For the sourcing phase, you may be best to engage a firm or freelancer on an hourly rate. RecruitLoop is a great option for this to help keep your total hiring cost down.
The most important thing though, regardless of your approach, is to establish your own Live Talent Community for your company before you begin. A Live Talent Community is where all the candidates that your recruitment agency helps sources, should ultimately end up. It is very Important that you own the relationship with all the talent that engage during the process, as you will undoubtedly need to hire more people in the future, and a Live Talent Community is an investment in this future growth. If your agency or recruiter pushes back and says that they need to database the sourced talent, you should be wary. You are paying for the service; you should ultimately own the relationship with these people.
“Adopting LiveHire has enabled us to take a more proactive approach to talent acquisition, differentiating our employee value proposition by delivering an improved candidate experience and better meeting the pressing business need for talent-on-demand.”
Justin Prince, GM of Human Resource