When evaluating the recruitment options that will work best for your business there are many things to think about. As we discussed a couple of weeks ago, considerations such as cost, internal recruitment resources, availability of eligible people in your area and the nature of the vacant position itself will all affect your decision on what method will produce the best result. No recruitment discussion would be complete without talking about what employment, temporary and executive search agencies can offer your business. So let’s begin by looking at the typical recruitment services offered by these agencies.
- Temporary Employees are useful when you have a short term need and/or do not want the payroll responsibilities. The agency will provide you with a person to complete the tasks with an acceptable level of skill. The temporary employee is paid by the agency and, as such, they are the employer of record and must pay the employee for the hours worked, vacation pay, statutory vacation pay and possible expenses incurred. As the employer of record, the agency is also required to pay the remittances for CPP & EI as required by the government of Canada. As the company making use of this service, you will be required to approve the timesheet either through an electronic or paper process. By doing so, you agree to be invoiced for the number of hours worked based on a flat rate fee that should be determined prior to the temporary placement. All you need to do is call the agency and they will do the rest.
- Permanent or Contract Employee recruitment is a great option for any business that does not have the internal resources or time required to find the necessary employee. Anyone that has gone through the process knows that recruiting is a very time and resource consuming job. You need to create the job posting, post the job, review resumes, pre-screen potential employees, set up interviews, interview, reference check, offer and do rejection calls or letters. An agency will look after the vast majority of these steps leaving you to only make the final decision based on a well screened selection of candidates.
- Executive Search is a service utilized by many larger organizations to recruit “top talent” for positions where the pool of candidates is very small and have very specialized skills. This is typically a retained search meaning the company looking for the executive will pay an agreed upon amount prior to the search firm commencing the recruitment process and a final payment after the search is complete and an offer has been accepted.
As with the other recruitment methods, let’s look at the pros and cons of using an employment agency.
- Pros – an employment agency will use its recruitment knowledge and expertise to offer you a pre-screened selection of candidates that all meet your requirements and payment for this service is contingent on the successful hiring of one of these candidates into the position (note: the exception listed above for executive search). As well, most permanent placements will come with a guarantee offering you a specific amount of time for replacement should the new employee not work out.
- Cons – This option can be cost prohibitive for some companies. Permanent placements are invoiced based on a percentage (between 10 – 25%) of the annual salary, while executive search can cost between 30 – 35% of the annual salary. This being said, it is important to note that most businesses do not realize the actual costs they are incurring when they are taking on these recruitment activities for themselves. All of which come with no guarantee of success.
Have you ever used an employment agency? How did it work out for your business?