Thursday, August 12, 2010

Should you as a business use a recruitment agency, or do it yourself?


As a recruitment agency owner the temptation would be to say that you should always use a recruitment agency (preferably my one), and that anything else would be foolhardy and possibly even dangerous.

However, in the interests of being unbiased and also a helpful sort of person, I can also say that there is more than one way to skin a cat.

A professional HR or recruitment agency will (if they are good) help you with all aspects of the recruitment process. They will take time to get to know you and your company, to understand your culture, and work with you to find people that will be a good fit. They can approach your competitors and get the stars in your industry interested in your company (something that's hard to do directly), negotiate salaries and conditions, and make sure that the applicant of your dreams starts working for you. In addition to this they will also be your PR agency, your champion, and make sure the world knows about your awards and exactly why YOUR company is the one that everyone wants to work for. They can give market advice to you, advise if your salaries are way out of the ballpark, and tell you if word on the street is that your managers may need to improve their people skills.

All sounds fantastic, right? Is there anything this talented agency can't do? Well, the little proviso in brackets is more important than you might initially think. To recap – a professional HR or recruitment agency will do all these things and more – if they are good. A good agency will save you time and money, will find you the impossible to find people, and help your company's profile in any way that they can. But what about a bad agency?

A bad agency will waste your time and money. You will end up speaking to a different consultant every other day, as they are continually being fired or leaving the trade. You will spend your days opening up CV's that make you wonder if the agent even listened to your job brief or knows what your company does. You will be promised that every applicant is perfect for your business, only to be met with a succession of unsuitable or unqualified applicants, who have not been told about your company. You will be drawn into arguments about which agency sent you a CV first, and threatened with paying multiple fees for the same person. You will end up having to replace someone who was a poor hire, and the agent – who was once your best friend – will become suddenly distant and hard to contact.

If you're thinking that this all sounds a little scary (or, unfortunately, nodding your head in recognition) then try looking at it this way. If you employ a great accountant they will accelerate the growth of your business. If you employ a bad accountant then you could be doing some jail time. Recruitment is no different to any other service that businesses routinely outsource. If you are able to do it yourself smoothly, successfully, and without taking time away from what you really do for a living, then I recommend doing it yourself. Put like that, there is no reason not to.

Having said that, I hire an accountant because I am not an expert in that field and I do not have time to do the accounts myself. I hire a lawyer for the same reason. And this may sound strange for a recruiter, but I hire a recruitment consultant when I want to recruit more staff. (Yes, there are agencies out there that recruit recruiters for recruiters). The cost of paying a fee to an agency is less to me than the cost of the time it would take me to find someone myself. If you are able to find a good agency then that partnership can last you for many years. Most agencies bill on a 'no success no fee' basis too, so a good agency will also add value to your business without costing you a cent if you do not engage an employee through them.

So how do you find that agency? Ask around your industry for recommendations, talk to a few agencies, and most of all – trust your gut instinct. If you don't feel a rapport then take your business elsewhere. You do not have to commit to one agency either – try a few until you find the one or two that work in the way you like. Don't waste time with the time-wasters, but a good agency is a gold mine for your business.

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