Why use a recruitment agency?

8 August 2014
Why use a recruitment agency?

When the economy or market slows, companies tend to watch every dollar they spend, having to justify spending to their superiors. Many companies push for the HR departments or Managers to take on the responsibility of recruitment themselves. The theory behind this is that they should be able to recruit, after all it relates to human resources. It seems quite practical when you think about it however during the new employee’s probation period it often becomes apparent that the person hired was not the best fit. Our article today is about “What is the cost of a wrong hire and why use a recruitment agency to find staff”?

Recruitment agencies can be seen as a cost effective investment limiting the risk involved in finding the best talent for your role. We will explain the several reasons why you should use a recruitment agency to find staff. In summary they are:

Cost of getting it wrong

Of course it will vary depending on the level of the role, but as a rough guide it can be calculated anything from 20-70% of the persons annual salary. It includes things like:

  • The hours spent by everyone involved – Ad writing, screening, interviewing, reference checking, testing, inductions, staff training etc.
  • The hours lost not focusing on the core business activities
  • The cost taking someone away from their job to formally train the new employee 
  • Potential morale issues within teams and departments for a wrong hire 
  • Lost productivity during the rehiring stage 
  • Reduced output during the re-training the next new hire 
  • Direct and Indirect costs attributed to the wrong hires decisions whilst in the role 
  • Increased internal pressure to get it right the next time 
  • Company brand and image can be affected by not getting it right

Identify source and attract talent

Experienced recruiters will have at their disposal a number of techniques, tools and networks from which they can use to tap into a wider pool of talent to ensure a greater depth of potential candidates. It is the quality of the candidate pool not the quantity that will ultimately prove the value of external recruiters.

Expertise in Recruitment and the Market

Professional recruitment consultants take great pride in their chosen career. They:

  • Accumulate strong recruitment experience and market expertise.
  • Understand the full end to end recruitment processes and are aware of the time wasting events that can happen
  • Follow a repeatable and proven methodology and have great intuitive experience through years and years of experience
  • Have an intimate knowledge of the state of the market and be better able to advise their clients on realistic outcomes including time frames, remuneration and other ‘success’ issues.
  • Are talking to candidates on a daily basis and will have contacts, knowledge and abilities to ensure a successful outcome that most clients would not consciously appreciate or be able to match.


Recruitment is what we do, it’s our core function. We are rewarded upon our success, so have a vested interest in achieving the best outcome in a timely manner. Our ability to identify, source, attract and validate candidates is a fraction of the time it would take a client. We are also better able to maintain regular dialogue with our candidate pool to ensure their ongoing interest.


Internally managed recruitment does not offer a guarantee of success. It merely performs the recruitment exercise all over again if the original appointment does not work out. It is standard practice for recruitment firms to offer a three (3) month guarantee on a permanent placement. If for some reason the placed candidate does not live up to expectations, it is then up to the recruiter to undertake the recruitment exercise again. Whilst it is disappointing if this is the outcome given all the points above, there is peace of mind knowing a guarantee exists.