Why Do Companies Use Recruiting Agencies?

Why do companies use recruiting agencies when job boards are full of potential employees looking for a new career or temporary position?

For the job seeker exhausted with their search, it might not make any sense to see companies using recruiting agencies when there are plenty of unemployed or tired employees looking for a new path in life.

“Even in a healthy economy, qualified job seekers often struggle with reaching recruiters and human resource professionals due to in part to the increasing number of job applications from unqualified candidates.”

Jessica Miller-Merrell

At NRGUSA, you will learn everything you need to know about using recruiting agencies, the benefits of these agencies, and why companies use recruiting agencies. Whether you represent a company or if you are a candidate seeking a new job, learning about how recruiting agencies and the hiring process of many companies will only help.

Why Do Companies Use Recruiting Agencies?

  • Access to Higher-Quality Candidates
  • Recruiters often save the best candidates for companies who need to fill a specific position, because they have connections to both the company and to job seekers. Some of these job seekers may not even be actively looking for work but are open to new opportunities if they were presented to them. This gives the company better access to higher-quality candidates, beyond what could be achieved through the traditional job board posting.

  • An External Hiring Partner
  • Recruiters act as a hiring partner outside of the company, providing the company with the ability to make fast-paced decisions and fill positions quickly should they need to, especially if they know about the newly open position in advance. Recruiters often work with the company and candidate not just through placement but also the hiring and onboarding process, taking care of employee training, benefits, and payroll should the company require it.

  • Saving Time and Money on Hiring Managers
  • Many companies do not have the money to spend on keeping an employee solely for interviewing hiring new candidates and asking a pre-existing employee to do so can cut into productivity and workplace morale. Any company that opens the position to the public will find themselves overwhelmed by resumes and under-qualified candidates hoping to luck their way into a new job with a better salary than their last position. A recruiter works with a specific list of candidates and provides resumes based on their suggestions after matching them with the workplace and position, saving the company time and money sorting through unqualified resumes and candidates.

  • Insider Alerts to the State of the Industry and Job Marketplace
  • Larger companies who work with recruiting agencies tend to rely on their recruiters to bring them news about the state of the company’s industry and how the job marketplace looks. If there are a lot of candidates seeking specific positions within a company or industry, it can alert the company to upcoming trends in the public, allowing them to pivot and further support employees.

    Different Types of Staffing Services Provided by Recruiting Agencies

    Why do companies use recruiting agencies? One major reason is that they provide versatile services. There are many different types of staffing services provided by recruiting agencies which can be applied to companies in any industry. Below are several examples of NRGUSA’s boutique client services:

  • Temporary or Contract Staffing
  • Many companies, especially on Long Island, seek temporary or contract employees to accommodate seasonal or temporary spikes in demand. They cannot commit to hiring a full-time or part-time employee but need additional help to fill lost work due to employees going on maternity leave, or due to increased demand during tourism or holiday seasons.

    NRGUSA offers temporary and contract staffing solutions with payroll services allowing the employee to be on their payroll. This gives companies the option to hire additional temporary work without the increased administrative burden of hiring employees and filing dozens of temporary workers on taxes.

    Our team visits the workplace to ensure our recommended candidates would fit in with the work environment, and we make the connections with our suggested candidates, taking care of recruitment, salary, benefits, and administrative burden so you can have the talent on board in less time than it would take for traditional methods of hiring and training new employees.

  • Temp-to-Hire Staffing
  • Temp-to-hire staffing services have become more popular in recent years as it benefits both companies and employees. Temp-to-hire solutions allow the company to hire a temporary worker with the intent to hire them full-time if they pass certain qualifications. Likewise, the employee gets to determine whether the workplace environment suits their personality and if they feel fit to perform the job.

    Once the employee has successfully integrated into your workplace and the temporary contract is up, the company gets to decide whether to extend an offer for a full-time position. It is up to the candidate whether they want to accept this full-time position and continue working with the company. NRGUSA takes care of all the due diligence and pre-approval of each candidate and company to ensure both parties are suited to each other for the best chance of success in matchmaking.

  • Direct Hire Staffing
  • Direct hire staffing is not as popular as it once was, but it is still important for many companies who need to hire for permanent, full-time positions quickly. This method of hiring candidates is much more efficient than the typical hiring process, as candidates are pre-approved and vetted by NRGUSA.

    The recruiters at National Recruiting Agency will consult with your company to determine what skill sets you need to fulfill, and we will visit the facility to get a better idea of the workplace environment. Once this is done, we will match a candidate with your company’s needed skillsets and workplace environment, providing a candidate who has already-established experience. Your company will interview each approved candidate and be able to make an in-house salary offer based on the impressions of your hiring manager after the interviews.

  • Payroll Services
  • NRGUSA offers a Payroll Plus program which allows you to hire the employees without placing them on your company’s payroll. You select the candidate based on our recommendations through one of the three staffing solutions, then establish their pay rate. Once the employee begins work, you will approve and forward their timecards each week. NRGUSA handles everything, including benefits, payroll, taxes, insurance, and other administrative burdens of placing an employee on payroll.

    This service is beneficial for companies who might not have the capacity to perform the administrative burdens associated with traditional payroll or are not set up to take on as many employees as they currently have, which is common in industries that fluctuate with each passing season.

    Are There Disadvantages to Using a Recruiting Agency?

    There are very few disadvantages to using a recruiting agency, and many of the “cons” fall on the employer’s side of the fence, rather than the candidates’. The main disadvantage is in the fee for employee placement [2] but this is easily balanced by recruiting agencies who offer temp-to-hire services or payroll services like NRGUSA.

    “In general, recruitment agencies’ fees are around 20 to 30% of the employee’s annual salary.”

    Anja Zojceska

    Additionally, many recruiting agencies do not take the time to ensure the candidate is a cultural fit for the workplace environment like NRGUSA does, meaning most recruiting agencies are not worth the fees.

    Many companies who fall outside of NRGUSA’s service range will choose to hire employees with an in-house hiring manager rather than spend the money on a recruiter. NRGUSA’s unique outlook on the workplace, however, changes this standpoint as candidate personality and workplace environment are a significant portion of NRGUSA’s placement considerations, with the first being the base skillsets had by the candidate and required by the employer.

    NRGUSA is the Top Recruiting Agency on Long Island

    For many candidates who are looking for a new career path, temporary or seasonal work, or who are fresh out of college, NRGUSA is the top recruiting agency choice for them. NRGUSA specializes in placing employees who match the required skill set as well as the personality of the candidate to the work environment, leading to longer-lasting placements and greater employee morale.

    Our boutique Client Services are tailored to meet the needs of every company and candidate. NRGUSA’s unique approach costs companies less and raises the overall satisfaction of employees, revolutionizing the relationship individuals on Long Island have with work to become something meaningful, whether they are filling a permanent or temporary position.

    Our team is experienced in finding recruiting placements for every type of job in the area and are dedicated to finding the right placement. We handle temporary staffing, contract staffing, and direct hire staffing. This sort of job matchmaking is ideal for keeping administrative costs low and population happiness high.

    For companies and hiring managers, if you are looking for something more than just placement, NRGUSA also has payroll services and temp-to-hire solutions, allowing you to select the right candidate, establish pay rate, and evaluate an employee before you commit to hiring them for a full-time position.

    What are you waiting for?

    Contact one of our recruiters today and learn more about the benefits of working with NRGUSA to find your dream placement today.