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Are Recruitment Agencies Worth the Money?

 

There’s been a great deal of discussion recently on recruiting new staff and the best way to do it.  Is an internal recruitment department the best way to fill a particular company’s vacancies or is it better to outsource this requirement to a specialist recruitment company?  Opinions can be divided and there are a number of factors to consider. 

There’s a widespread belief that using a recruitment agency is more expensive than using in-house staff to recruit and in these cash-strapped times this can be an area in which companies believe that they can save money.

However the reverse is frequently true. Hiring and retaining dedicated recruitment staff still requires the company to make a substantial financial commitment, whereas a specialist company such as AMR only charge for the staff that they place (the rest of the service is effectively free) and with a rebate period built in, fees are only paid by the hiring company if the placement is successful.   Many   hiring companies use the expensive strategy of placing advertisements on jobs boards and the resulting man-hours spent in sifting through the deluge of irrelevant applications further increases their recruitment costs.

Those in favour of in-house recruitment may argue that the recruitment departments have the ‘inside track’ on the company, its policies, ethics and ethos, which aligns to a popular belief that recruitment agencies are sales driven.    However a reputable recruitment agency will quickly and effectively become the company expert, listening and consulting to ascertain the company’s exact requirements, not only professionally but also for the ‘soft skills’ that the ideal candidate will possess.  This means that candidates submitted for screening by the recruiting agency will have the necessary personal and professional attributes to fit into both the role and the company.  This in turn shortens the screening process, saving the hiring company both time and money.

One major argument put forward for companies undertaking their own recruitment is that the ongoing growth of Facebook, Twitter, social applications and online communities means that millions of potential candidates have an online presence. However even professional networking sites such as LinkedIn require their users to update their profiles – and many people fail to do this.    Although these sites are popular, not everyone uses LinkedIn or any of the social applications sites, so although theoretically the web makes it easier to find people it doesn’t mean everyone — nor is it necessarily the case that everyone who is online is easily visible, or that their details are up-to-date and therefore accurate.  

It’s also a matter of preference as some candidates prefer the more discreet approach that a specialist recruitment company can offer and many will return to the recruitment company when the time eventually comes to seek a new position.

AMR’s Eddie Conroy says:

“We are proud to offer a highly-personalised service in which we meet every candidate face-to-face so that we can build rapport and gain personal knowledge of every person who registers with us. Similarly by consulting closely with our client companies we enhance the opportunities for both sides, ensuring that each party can be confident in the introductions and that we make and ensuring a successful conclusion”. 

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