What’s Does a Recruitment Agency Do?


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For all those of you who have by no means worked with them, recruitment agencies are a great mystery. What do they really do? Are they any good? What are they to start with? Firms? NGOs? Employers? Governmental organizations? So many questions… So let’s clear the air a bit.

First of all, recruitment agencies are firms – primary and odd corporations which have employees, that pay taxes and that make profit (or no less than try to because the area of interest could be very tough and competitive). On the market there are a few international high rollers which might be current in a number of countries (like Lugera & Makler, Adecco, Trenkwalder), a few small companies that specialize on a distinct segment, are good at it and really make profit (like SAP recruitment) and a number of other others which attempt to survive (however many of the times don’t).

A recruitment company covers mainly primary activities: helps candidates discover a job and helps different corporations discover good candidates for the open positions they have. So they’re a mediator on the market between candidates that seek for jobs and firms that seek for candidates. Most businesses (I exploit “most” because all of these now we have worked with did it, however I can not guess that each one on the earth are in the same situation) supply largely free services to candidates and get paid by corporations only.

To a candidate, a recruitment company offers the next services (fundamental services are free):

– Receiving their resume and inserting it in a database which helps seek for candidates with a certain skailing; for businesses operating on the same market, competition is big because they find yourself finally with an analogous database, so profitable the shopper gets harder; additionally, small inexperienced companies can’t compete with giant ones which already have an enormous list of candidates that they can search in minutes;

– Helping the candidates build a professional resume (sometimes paid service);

– Assessing the candidate’s skills by making use of tests (IT, language, professional psychological tests) or throughout interviews;

– Offering improvement strategies (typically paid service) and providing to incorporate them in training or coaching periods (also largely paid service);

– Sending the candidate’s resume to employers who have open positions, in keeping with required skills (free service largely);

– Providing the candidate feedback in case of rejection or mediating the salary providing process (mostly free service).

To a company, a recruitment agency provides the next providers:

– Search resumes in their database;

– Post ads on suitable recruitment channels;

– Interview and test candidates;

– Propose the perfect candidates for the available positions;

– Replace candidates without spending a dime if candidate leaves or is being fired (on candidate’s fault) within a certain time limit (3-6 or even more months relying on position);

How does the hiring process work?

1. The consumer of the recruitment company opens a position and offers it to 1 or several recruitment agencies, relying on inner necessities, policies or depending on the signed contract between the two events;

2. The consumer may be required to pay an advance fee (used for posting ads or for initial time spent on interviews). Fee is not returned. Relying on initial agreement, this price may be skipped and a closing success price paid instead (only if agency manages to fill the position with the suitable candidate);

3. Company posts ads, selects resumes, interviews candidates;

4. Company presents a closing list of prime candidates to the consumer;

5. Shopper interviews final candidates and gives one or several;

6. If position(s) is (are) covered, taxes are paid and process stops; else, recruitment process starts again. If a number of agencies work on the same position, the primary one to fill it gets the money. The remainder just waste time.

A recruitment agency works just like every other company. It is a service provider. Its employees are recruiters (the individuals who do the actual recruitment and selection), sales people (who seek for purchasers and sign contracts – typically in small agencies sales people are additionally recruiters) and support people (like finance people, building maintenance, drivers, any other internal position vital for a corporation to work effectively).

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