Why Do Companies Use Recruitment Agencies Despite Job Portals? Seeking Advice on Effective Hiring Practices

Why do corporations have accounts on top job portals but still hire recruitment agencies despite these job portals having millions of resumes in their database? Is it because of these vast databases that HR personnel are unable to find good matching profiles for their requirements? To what extent would it help if the recruiting team also involved members of the technical team (not necessarily from the same team for which a person is being hired, but anyone with similar technical skills) to shortlist candidates from these job portals?

I have recently landed a job and now need to hire people, so I need to establish the hiring procedure. Please advise. Thank you!

Hi,

As far as my knowledge goes, the reason behind hiring placement agencies is that, frankly speaking, many people don't register on job portals. Basically, the people who are interested in relocating from their city or state are the ones who post their resumes on job portals.

However, in placement agencies, when a person goes to them for registration, they conduct a basic interview with the candidate. This gives the placement agencies an idea about the individual - their preferences, area and nature of work, expectations, etc. This information helps them match the suitable candidate with organizations.

Thanks for the response. Just to clarify, to what extent would it help if the recruiting team also involved members of the technical team while shortlisting (promising) candidates from the job portals?

Would it be:

a) extremely helpful

b) very helpful

c) somewhat helpful

d) not helpful

Do you think we can save a lot of time and effort this way, or would it make things worse? In my opinion, technical persons would be in a better position to relate a resume with the requirement. Would you agree?

BTW, sorry for posting this question in the wrong topic area :(

Hi,

Yes, HR professionals working in companies can access databases from job portals. However, many times HR personnel in companies are engrossed in daily HR activities, and sometimes the HR department itself is understaffed. It's common to find only two HR executives managing all HR functions, leaving them occupied with routine HR tasks. Towards the end of the month, they are preoccupied with payroll, PF, and ESIC responsibilities.

Engaging in placement activities can be costly for them. Unlike recruiters in consultancies, HR personnel in companies are not as target-oriented. Consultancies, on the other hand, focus primarily on generating data, making it easier to obtain the necessary information promptly. This prompts companies to seek assistance from consultancies, which can facilitate quicker placements.

Regards,
Rohini

Thanks for the response, Rohini.

If I'm reading you correctly, what you are implying is that it's difficult to find qualifying candidates from these job portals (as it takes too much time and effort) and that the services of consultancies are used. That's precisely why I asked the previous question - how much do you think it would help if members of the technical teams are involved to shortlist suitable profiles from these job portals? Would you still go for headhunters? Has anyone conducted any sort of exercise like this?

Thanks again for the responses!

Hi,

I think it will help when HR in a company creates some strategies; a lot of headhunting and referencing are needed. That's what consultancies do. So, even companies can create a small consultancy within the company. For example, two recruiters could focus on headhunting, making 50-70 calls a day, while others work on actual requirements. We can create a small consultancy within a company.

Approaching consultancies every time is expensive, as bosses often point out the budget and question the charges. You may feel, "I'm not using this money for me; I'm using it for the company." Nothing personal, guys, and nothing offensive.

Regards,

I think a better solution would come if the HR professionals also have technical knowledge for the first round of screening. Involving the technical team for shortlisting resumes is not very practical as they would already be short of time and have their own deadlines!

Regards,
Kumuda

Hi Ebirbal,

This is a question that everybody should look into. There are certain systems and procedures that we follow or implement for ourselves as well as for the company. The question that you are asking for is: Why does a person look for different options once some options are available to him? In my view, the HR needs to see things from a top angle. He needs to see how much time is available for him to involve himself in different job portals. He needs to understand how well-versed he is in the subject matter. He needs to see what backups are available to him - technical/subject support. Based on the different options, one needs to understand how equipped he is with the necessary tools before making a decision.

The goal is to find the right person for the right job. If you have good exposure to the portals, then go ahead. If not, then ask yourself how to reach your goal. Now, I think we understand the objective of the question.

There are good placement agencies available that have taken this up as a long-term career. They understand the business, and if you provide them with your requirements in detail, they can help you fulfill them. They filter the candidates at their level and revert back with all the requirements, which you may need to check at your level to complete the task.

This is something that I do and understand. We have various ways to see things in a wider range. Try to understand the concept. I am trying to convey that you are the deciding force, and I appreciate the concept of "SEE A PROBLEM NOT AS A PROBLEM BUT SEE A PROBLEM WITH A SOLUTION." If you approach problems this way, you will see them being solved.

I hope this will help you.

Regards,

Venkatesh

I am a recruiter. Many people come to us after going through the online databases. People come to us for many reasons, but most of the time they come because:

1. they don't have time for detailed study of all CVs
2. they cannot dedicate a senior manager for recruitment because of operational activities that he/she is involved in
3. they feel internal or external pressure to hire
4. they don't have expertise in the subject area
5. regulars know that it is cheaper

As for the next question of associating a technical person, I believe that recruitment professionals in agencies have the capacity to match profiles in generic terms and come up with alternative options of candidates for a particular position. The skill is more on how to read a CV or how to understand a person, and this goes beyond the general exposure to technical skills. However, during final assessments, we do recommend our client organizations to participate in decision-making because during these assessments, the most important task is to see the relative advantage of candidates and discuss which set of skills and attitude would be best suited.

Of my experience in recruitment:

1) Job sites' databases only give access to candidates who are actively looking for a job.

2) The best applicants come in response to advertisements.

3) Staffing agencies get access to the same people that every other recruiter does.

4) Placement agencies (supposedly) tend to have a considerably huge database that gives them access to more people than what the job sites can offer.

Though placement agencies lack the knowledge of looking at what companies look for in candidates, the time invested in talking to candidates is effectively delegated out of the internal recruitment team. (This is based on my analysis.) For instance, a recruiter talks (over the phone) to a candidate for an average of 12 minutes, which means that in an hour, effectively it's 5 candidates. Three do not fit the positions and/or are not interested. Two get to the first level of the interview, of which 0.5 make it through to the 2nd level, and 0.25 receive an offer, with 0.125 joining. This means we are close to a 2.5% speak-to-join ratio, which is too little. Hence, it becomes a lot easier to have the talking part left to the consultants (selling the job, the company, and a basic assessment).

This improves the ratio of speak-to-hire for internal recruiters by at least 4 times.

I guess what I am trying to say is close to what ebirbal expressed, but with numbers. Please add your thoughts.

Hi,

I have read with interest the comments put in earlier. I feel that placement consultants are better placed to help HR in companies recruit the right person for the job for the following reasons:

1. Relying solely on job portals will make you as good or as bad as the job portal in terms of the availability of the right candidate.
2. I have nothing against job portals; in fact, they serve their purpose, but they have limitations regarding the candidates who use them. You would hardly find good candidates at senior positions posting their profiles on job portals due to obvious reasons.
3. Hiring at junior levels is acceptable from job portals, but at middle and senior levels, it is quite inadequate.
4. Placement consultants, in addition to their own database, have the advantage of being able to headhunt from organizations that have synergy with the company for which recruitment is being done.
5. Consultants carry out a lot of initial work in recruitment that HR in companies may not have time for.
6. Outsourcing the recruitment function also offers the advantage of speed and accuracy in the recruitment process.
7. There is good value addition to the recruitment process when outsourced to specialists. A note of warning: when trying to recruit through lower-level, unprofessional consultants, you may meet your budget but would not get a good value addition.

Jayant

Hi Friends,

I believe the involvement of technical teams in recruitment is always necessary, as they are the ones who conduct technical interviews and ultimately make hiring decisions. I suggest that we establish a structured interview panel to minimize any delays in final results, if they occur.

When companies choose placement consultancies as a recruitment source, it is important to note that it is not the only option available. In addition to placement consultancies, dynamic and attractive internal referral schemes and job portals are also prevalent. It is challenging to rely solely on one source to meet all your manpower requirements.

Furthermore, when companies opt for placement agencies, they typically expect a certain level of tech screening to be conducted on their behalf. Recruitment is a critical function, and it is essential to address its key aspects in the most effective manner possible.

Regards,
Suvarna

Please note: The above-mentioned analysis does not include the time spent on searching, shortlisting, and screening resumes, which would actually add a lot of overhead.

The point raised by EBIRBAL is very important. HR needs to get very close and hands-on to recruitment and selection along with the technical team. This is indeed a key function of all HR professionals. Salary, payroll, ESI, and PF, if outsourced to payroll agencies, HR professionals can have enough time to work on sourcing strategy, recruitment, training, etc. Whether job portals or recruitment agencies, they just cannot select for corporates; at the most, they filter. Unfortunately, many HR hours are spent on payroll and statutory compliance, leading to poor selection and poorly trained employees.

Hi, I am Abhay Gadiyar, a recruiter from Nitya Placements in Mumbai.

The job portal database is not entirely dependable. Not all people are willing to float their resume on public media like job sites. There is a lurking danger of company HR discovering their colleagues on the job sites. Good contacts and social networking help good placement companies to fetch passive candidates who are not to be found on any job site. These passive job seekers are being pushed by friendly consultants to consider new job offers.

A meeting of the placement consultant with the technical team to understand the requirements goes a long way in tapping exactly matching candidates.

Bulk Hiring

Have you ever experienced a deluge from job portals? It takes close to 2 hours to shortlist 5 candidates, then another 45 minutes to talk to each one of them, sell the organization, job, etc., coordinate an interview, send address emails, etc., to those 5.

One candidate will not be contactable, one will not be interested. Out of 3, one may not come for the interview due to time or locational constraints. So, after spending 3 hours of productive time, you have only 2 candidates. Do you suppose that you will be able to make a good decision based on this? My experience has shown that this is not the case.

Generally, most companies have 1 person who handles actual recruitment; their boss oversees but rarely does the coordination part. So, one employee has spent 3 hours to no avail for just 1 position that might not even have been filled.

This is why organizations use consultants. To some extent, also for their database. Payments are only made if a candidate has been selected. Of course, coordination with placement agencies is a task too, but then at least you are coordinating with 1 entity for 4-5 candidates.

Fewer recruitment numbers - Portals are not a bad idea at all, but the other administration work should not be too heavy to overburden an employee.

Personally, all resumes must go through the tech person because otherwise, they tend to throw a fit that HR is sending unsuitable candidates for interviews, etc. But keeping them involved full time may not go down well with the tech employee or your management - no hard and fast rule though.

This query gives rise to a very fundamental question : Why do you Need Recruitment Team in the Company, if they cannot even source the profile on their own...which is a very basic job for which they have been hired for?

Recently I wrote one write-up on this "Titled: Existence of Recruitment Team in your Organization" and yon can have a look at it is at: <link outdated-removed> .

Regards

Sanjeev Sharma

(Blog: http://sanjeevhimachali.blogspot.com/)

Introduction

What do you think is the actual role and responsibility of "Recruitment Team" in company? I my previous write-up titled "Roles for HR Professionals in New Economy, I have mentioned about various roles and responsibilities that a "Recruitment Team" can take-up. The key and main role of the Recruitment Team of any organization is "Sourcing" but even if they are not doing that and just working as a mediator between Various Departments and Recruitment Consultancy Firms/Agency ... don't you think they are not justifying their very existence in the system? Lets go in detail and find the solution.

Different resources available for sourcing

The following are the various resources available for corporates and organizations to get profiles for their requirements:

1) Advertisement

2) Employee References

3) Job Portals

4) Campus Hiring (including, hiring through different private institutes)

5) Recruitment Consultancies/Firms

6) Resumes…posted on the website of the company

7) Direct Drop-ins

The last two are ill-managed resources. If managed properly…these two resources can be very useful and effective. Among the above-mentioned sources "Recruitment Consultancies/firms" is the only source where you cannot, directly get in touch with the "prospective employees".

I am not against "Recruitment Consultancies"…I am in favour of them and I want to use them in a better manner. I want to use this resource for "Headhunting". This gives rise to two more questions? What are different resources available with Consultancy Firms…for sourcing and what is difference between Sourcing and Headhunting?

Different Resources available with "Recruitment Consultancy Firms" for sourcing

Recruitment Consultancy Firms also use all the above-mentioned resources except "Campus Hiring" and "Employee Reference". (Let me know if there is any other resource available to them). Then, why is it that you cannot tap the talent and they can? Probably, you are not aware of the market? Probably, you are not aware of the business?

Sourcing v/s Headhunting

This explanation and distinction between Sourcing and Headhunting is for one of my very dear friend (Mr. Amod Bajaj; Zonal Manager in one of Delhi Based Company). Sourcing is then when your profile is readily available in the market…either on job portals or it is available with almost all the Recruitment Consultancy Firms. In such scenario you are available in the "Supply Pool" and as and when there will be any "Demand"…your profile will be considered.

Headhunting…as the term suggests…you are not available but those who need you…they need to "hunt" for you. Your profile is not available on any of the job-portal… and only few selected (your trusted) consultants are in possession of your profile and there is very little chance that they will respond to any "job advertisement". In such scenario, the Recruitment Team or the Recruitment Consultant…should be very clear about the Job Description and Job Specifications…should have very clear picture about the industry and business and should know where to find such people…matching those Job Specifications. Then you should find his contact details and thereby his profile. This process is called as "Headhunting". So friends, if your profile is availble on Job Portals or readily available...otherwise...and you get an interview call...that is not "Headhunting" but "Sourcing". More often one needs to headhunt for following profiles: CEO, CFO, COO, Directors, Presidents, Vice-Presidents, National or Global Heads and for those typical profile which are hard to find.

As it is not adviceable or ethical for a company to "Headhunt" people from the market, they assign this job to a Third Party…to do it for them. Stanton-Chase … Recruitment Division of E & Y…are couple of such Head-hunters.

What the "Recruitment Team" is actually doing?

First question, if the recruitment team of your company is the final authority to "Select" or "Reject" a candidate? In most of the cases…your answer will be NOPE, they are not the final authority. That right has been vested on "The Departmental or The Functional Head". If those Department and Functional heads selects anyone on their own…without informing you…you cannot do anything.

Now the second question…you cannot take any decision (on selection or rejection)…you cannot even source (just getting people from recruitment consultancy firms)…then what are you doing in the company? Are you working as mediator or coordinator between "Consultancies" and "Functional Departments"? In such scenarios…how can you justify the very existence to this "department" in the organization? I am not against "Recruitment Department"…my question is if they are not doing the very basic and key function of their department-"Sourcing" , then what they are doing?

As soon as they get the requirement from any department or any division they just call their (their selected, short listed or favourite) consultants and place the requirement. I have seen…in some cases they are not even able to explain to the consultants…the Job Description…Job Specifications and roles for the profile that they are looking for. It is an irony.

Some hard facts

In big companies…national or global companies…the size of recruitment team is enormously huge…as big as 70-100 people. On an average…each member of recruitment team…gets a salary of Rs 3-4 LAKHS Per Annum. On that, how can you justify a payout of Rs. 3-5 LAKHS Per Month to an external recruitment agency?

Solution and Conclusion

It is not my verdict and it is not my decision. It is your company and it is for you to pay. But, I suggest to "Corporate Heads" and "HR-Heads"…either use your all resources minus recruitment firms…efficiently or outsource your total "Recruitment Process" to an external agency. This will save a lot of Administrative and Operational Cost. What do you say?

Looking forward to your comments, opinion and feedback.

Regards

Sanjeev Himachali

(E-mail: [Login to view]; [Login to view])

(Blog: http://sanjeevhimachali.blogspot.com/)

Finding the right kind of people is a very challenging job. Even HR personnel are busy with other HR activities. Given the amount of personnel an organization needs to hire every week, this is a highly challenging job. However, this doesn't mean that HR personnel are unskilled.

Finding the right kind of people is a very challenging job. Even HR personnel are busy with other HR activities. Given the amount of personnel an organization needs to hire every week, this is a highly challenging job. However, this doesn't mean that HR personnel are unskilled.

What do you think are the other roles for the Recruitment Team? In this particular posting, we are talking about the Recruitment Team. Companies hire Placement Agencies because their Recruitment Team is not efficient. The main task for the Recruitment Team is to prepare profiles (JDs), source candidates, and coordinate with Operations for interviews. These are the basic expectations from the Recruitment Team. Hiring Placement Consultants means the Hiring Team is not efficient.

Regards,
Sanjeev Sharma
Blog: http://sanjeevhimachali.blogspot.com/