Human Resources Mysteries: What is Does a Recruitment Agency Do?

For all those of you who have never worked with them, recruitment agencies are a wonderful mystery. What do they essentially do? Are they any fantastic? What are they to start with? Companies? NGOs? Employers? Governmental organizations? So applicant tracking system examples of questions… So let’s clear the air a bit.

Very first of all, recruitment agencies are companies – simple and ordinary corporations that have staff, that spend taxes and that make profit (or at least try to due to the fact the niche is pretty tricky and competitive). On the marketplace there are a couple of worldwide higher rollers that are present in a number of nations (like Lugera & Makler, Adecco, Trenkwalder), a couple of little agencies that specialize on a niche, are fantastic at it and actually make profit (like SAP recruitment) and several others which attempt to survive (but most of the occasions never).

A recruitment agency covers mainly two fundamental activities: aids candidates locate a job and assists other companies uncover superior candidates for the open positions they have. So they are a mediator on the marketplace involving candidates that search for jobs and companies that search for candidates. Most agencies (I use “most” because all of those we have worked with did it, but I cannot bet that all in the world are in the very same situation) supply mostly totally free services to candidates and get paid by companies only.

To a candidate, a recruitment agency gives the following services (basic solutions are free of charge):

– Receiving their resume and inserting it in a database which aids search for candidates with a particular ability for agencies operating on the very same industry, competition is massive mainly because they finish up sooner or later with a comparable database, so winning the client gets tougher also, little inexperienced agencies can’t compete with substantial ones which already have a massive list of candidates that they can search in minutes
– Assisting the candidates create a specialist resume (occasionally paid service)
– Assessing the candidate’s capabilities by applying tests (IT, language, qualified psychological tests) or for the duration of interviews
– Supplying improvement ideas (in some cases paid service) and providing to involve them in instruction or coaching sessions (also mainly paid service)
– Sending the candidate’s resume to employers who have open positions, according to necessary skills (absolutely free service largely)
– Offering the candidate feedback in case of rejection or mediating the salary offering method (mainly totally free service).

To a corporation, a recruitment agency offers the following services:

– Search resumes in their database
– Post ads on suitable recruitment channels
– Interview and test candidates
– Propose the greatest candidates for the accessible positions
– Replace candidates for free if candidate leaves or is becoming fired (on candidate’s fault) within a particular time limit (3-six or even much more months based on position)

How does the hiring process work?

1. The client of the recruitment agency opens a position and delivers it to a single or a number of recruitment agencies, depending on internal specifications, policies or based on the signed contract involving the two parties
2. The client might be required to spend an advance charge (utilised for posting advertisements or for initial time spent on interviews). Fee is not returned. Depending on initial agreement, this charge could be skipped and a final achievement charge paid as an alternative (only if agency manages to fill the position with the appropriate candidate)
3. Agency posts ads, selects resumes, interviews candidates
4. Agency offers a final list of major candidates to the client
5. Client interviews final candidates and delivers one particular or various
six. If position(s) is (are) covered, taxes are paid and method stops else, recruitment approach begins again. If several agencies function on the very same position, the first a single to fill it gets the income. The rest just waste time.

A recruitment agency functions just like any other corporation. It is a service provider. Its employees are recruiters (the people who do the actual recruitment and choice), sales men and women (who search for customers and sign contracts – at times in compact agencies sales persons are also recruiters) and assistance folks (like finance folks, building upkeep, drivers, any other internal position important for a company to operate efficiently).