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The Most Important Questions to Ask When Selecting a Recruitment Agency

By Edited Dec 14, 2013 0 0

Many companies use recruitment agencies to take care of their staffing needs, as it is a cost-efficient and timely solution. Agencies handle all of the preliminary steps in the process including:

  • Recruiting candidates
  • Evaluating resumes
  • Performing background checks
  • Conducting preliminary interviews

Only when candidates have been sufficiently vetted to determine their qualifications are they submitted to hiring managers to consider for employment. Using a recruitment agency can be a huge time and money saver for your company. Here are some questions to ask when assessing prospective agencies.

How will I be billed?

“No placement, no fee” is the billing method used by most recruitment agencies these days. This means that you only pay for recruits that you ultimately decide to employ.

What fees will be charged?

The fees agencies charge for successful placements are typically expressed as a percentage of the employee’s first year salary. The exact percentage will vary based on the type of position, the industry, and the location, but in most cases will be between 10 percent and 30 percent.

What is your rebate structure?

Agencies offer a rebate structure in the event that hired employees do not stay with the company for very long. This typically involves a certain percentage of the fees being refunded depending on how long the employee stays with the company. Up to 80 percent of the fee can be refunded if the employee leaves within four weeks, while 20 percent might be refunded should the employee leave within twelve weeks.

How will CVs be submitted?

You don’t want an agency to just send you every CV they have on file, so find out what their process is for submissions. Candidates should be thoroughly vetted and prequalified for the positions they are being recommended for. It is also a good idea to find out roughly how many CVs you should expect, and within what time frame.

Do you have client testimonials?

Ask for testimonials from current or former clients, and speak to them directly if possible. This will give you a good idea of what to expect from the agency, and how other clients feel about their services. Hiring an agency that has experience in your industry is also a big plus, as they will have a better understanding of how your business runs, and what your needs are.

Do you do candidate confirmation and referencing?

Most agencies will confirm the identities of all candidates and follow up on references before making submissions. This ensures that only legitimate candidates with references that check out passed on to you for consideration.

Should I appoint more than one agency?

If you are in consistent need of new placements, it may benefit you to work with several recruitment agencies. This will not cost you any extra as long as you are only paying for successful placements, and will maximize your exposure to potential employees. For most companies, 2-3 agencies should be sufficient to meet staffing requirements.



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