You always want to find the perfect
candidate when you’re hiring. But
sifting through stacks of applications and sitting through hours of interviews can
be tiring and can take you away from time
spent running your business.
“If you choose not to use a professional
recruiter, both parties are going into the job
relationship blindly,” says M.J. Helms,
director of operations for The Ashton
Group. “The company may not be the right
cultural fit for the candidate, because the
person did not know anything about the
company, other than what they were told
in the interview. Or the candidate does not
meet the company’s expectation, because
the company did not have time to do references or skills testing.”
Smart Business spoke with Helms about
what to look for when using a professional
recruiter, how the recruiter can help both
you and your potential employees, and
when you should consider using a
recruiter.
What should you look for in a professional
recruiter?
Trust. A professional who is experienced
in the staffing industry knows how to listen
and cares about his or her company’s reputation. Good recruiters typically work off
of referrals instead of completely relying
on a job site for a candidate pool. They can
also provide you with both client and candidate references for you to check on their
level of service provided.
When should you consider using a recruiter?
If you have a human resources department, oftentimes you can use a recruiter
for more difficult positions to fill. Other
companies will use a recruiter for more
executive-level positions that are more
time-consuming searches. From a candidate’s point of view, looking for work is
work. It can be time-consuming and frustrating not getting your resume to the decision-makers. A good recruiter should have
that relationship established with the right
people. Also, when you are currently
employed and looking to make a change or
you know layoffs in your company are just
a matter of time, a recruiter can be out
there looking for you while you are still
working and making an income.
What is the typical cost of using a recruiter?
It can vary depending on where you are
located, what kind of position you are
recruiting for and if the client’s needs are
full-time, direct hire or contract employment. The average recruiting fee in the U.S.
is around $15,000, and it is not uncommon
for the client to want some sort of guarantee on the candidates placed. This is a big
cost savings, because if the placement is
not the right fit, the client would typically
get a refund or replacement at no charge, if
the recruiter had already been paid in full.
Most agencies will do a contingency search
for a company. The recruiter searches for
qualified candidates and allows the client
to interview them without incurring a fee.
The typical fee is 20 percent of a candidate’s annual salary. This fee can change
depending on the level of difficulty and
customization of the search. Some companies will pay a retainer fee in advance to
ensure that the recruiter has its complete
attention on their assignment, in cases
where the position to be filled is critical.
The second most common fee is temp-to-hire or contract-to-hire. For contractors,
the mark-up percentage is charged on top
of their hourly pay rate. When the company decides to convert the contractor to a
full-time employee determines if there
would be a buyout fee. This option is a
money saver — the company pays one flat
hourly rate while the contractor is working
there on a temporary basis, and the company is not responsible for benefits, unemployment, payroll taxes or workers’ comp
insurance. It can choose to let the person
go at anytime.
What are the advantages for clients and candidates in using a recruiter?
There are several advantages, one of
which is saving time. By using a recruiter,
the client will have only qualified candidates to consider interviewing for its job
position based on specific fact-finding
questions. This cuts down on clients
spending time sifting through a pile of
resumes, wasting time that they could be
using to do their jobs, thus increasing profitability. Working with a recruiter who is
experienced and has a pulse on market
trends helps a client position itself to
attract the best candidates. A good
recruiter will put a guarantee on the placement for 90 days. If the hired candidate is
not a fit within that time frame, he or she
will be replaced or the fee will be refunded
based on time worked.
When candidates use a recruiter, they can
explain what kind of job they want and
what type of company or industry they prefer, not wasting their own time on bad
interviews or being over- or underqualified.
A good recruiter can help you find jobs that
you might otherwise not know about. A
recruiter should know the hiring manager
and can shed light on specific information
for your interview that will help you prepare and stand out from others who are
interviewing for the same job. Lastly, a
recruiter understands the importance of
timing.
M.J. HELMS is the director of operations for The Ashton Group. Reach her at (706) 636-3343 or [email protected].
