Table of content page
Role of recruitment agencies 4
Reasons why employers choose to use recruitment agencies 5
Criteria for selecting an agency to recruit for an organization 6
Developing good working relationship between HR mangers and recruitment agencies 8
Acquiring and retaining high-quality and talented employees is key to an organizations’ success. Since the job market has become more competitive, recruiters need to be more selective in choosing their employees since poor recruitment decisions can produce long-term negative effects such as high training costs, poor performance, and high turnover rates. The provision of highly talented and innovative employees begins with the recruitment process as it is the initial step in developing a long lasting relationship between the employer and the employee. Recruitment is the process of locating and encouraging potential applicants to apply for existing or anticipated job openings in an organization. Recruitment provides an organization with a pool of possible candidates from which selection is done to fill job openings (CIPD 2008).
Recruitment can be done form internal or external sources. Given the difficulties with in-house recruitment methods, some managers choose to use external recruitment agencies instead. This paper discusses the reasons why the hospitality sector is popular in using recruitment agencies in their recruitment process. It will also discuss the function of recruitment agencies and reasons why managers decide external recruitment agencies and ways in which HR manager can develop and maintain long lasting relationships in the course of their working (Andersson, Holzer & Lane 2009).
Role of recruitment agencies
Recruitment agencies can be defined as companies or individuals (agents) responsible for advertising positions, receiving applications, interviewing and providing shortlisted candidate on behalf of an organization. Their key role is to ensure that they help employers move their business forward through intelligent resourcing process. These agencies provide support for recruitment for permanent, temporary or contract labor by providing HR managers with a pool of potential candidates from where the selection is done. It is the role of recruitment agencies to ensure that they provide organizations with an impressive shortlist of candidates who meet the set qualifications for any particular job depending on the jobs specifications. For these agencies to get the right type of candidates, they should get sufficient information from the employer regarding the job being advertised (Neugart & Storrie 2006). They are tasked with providing information to potential candidates such as nature of work to be undertaken, duration of work, position to be assigned, experience required, training, hours of work and the minimum pay and benefits that employers offer. The hospitality industry often requires temporary workers and hence uses agencies because they are able to find the workers more easily and faster as they have a pool of candidates who they refer to the HR managers. These agencies are compensated by the organizations they recruit for, usually contingent upon the referral of enrollees (CIPD 2008).
Reasons why employers in the hospitality sector choose to use recruitment agencies
Employers in the hospitality industry are known to use recruitment agencies mainly because the agencies usually operate on a “no win-no fee basis”. This is highly attractive to HR managers in this sector because it represents a “low risk” method of recruitment. Employment agencies have an excellent track record of assisting employers get people for employment on both permanent and temporary or contract basis. This method provides a high degree of flexibility to cover short-term demand. However, this method of employment is expensive for organizations especially when employing workers on long term basis. Large organizations may want to outsource the initial stages of the recruitment process to save time, and especially they lack enough staff to carry out the recruitment exercise (Cooper et al., 2005).
Since the hospitality sector is rapidly undergoing change and competition from rival organizations, it is imperative for this sector to recruit highly talented, motivated and qualified workforce who are able to meet the diverse needs of customers. Employment agencies have a pool of qualified and talented candidates who they refer to potential employers. According to Neugart & Storrie (2006), using recruitment agencies to employ new recruits helps organizations in recruiting suitable candidates and save employer’s time and trouble of sorting out and screening of candidates. This way they are able to concentrate on important organization issues such as the selection process which rests purely with the top management. The use of employment agencies also enables an organization to obtain highly talented workforce with up-to-date innovative skills.
Recruitment agencies offer standardized recruitment process, skills and its recruitment database, which is full of contacts. They assist managers with guiding, searching, selecting and interviewing candidates. They also offer advice on ways employers can use to improve employee retention and performance in their organizations. In some instances, HR managers may be seeking specialized individuals to take up leadership positions and know certain agencies that work in that specific sector hence resorting to using these agencies. The hospitality industry is known to be a busy industry especially during holidays, and HR managers may lack time to go through applicants for given positions hence the need to outsource this service to external agencies (Florea 2014). They may also lack staff capacity to deal with a large number of applications. High profile organizations especially multinational hotels sometimes avoid advertising using their brand names so as to prevent unsuitable candidates who may only be attracted to the organization by the brand name. However, agency fees can be costly because employers often pay a certain percentage of the employee’s salary to the agents annually (Florea 2014).
Managers in the hospitality sector also engage the services of agencies so as to use a range of specialist’s skills and access services such as screening offered by recruitment agencies. They also seek to gain flexibility in the recruitment to meet emerging market demands and to gain expert opinions about current recruitment legislations.
Criteria employers use in selecting an agency to recruit for them
Managers have to be very keen when choosing a recruitment agency when searching for potential candidates who will take up job openings and available vacancies in organizations. Choosing a qualified recruitment agency whose approach and values complement those of an organization can be daunting. Employers often want to use a recruiting firm which has contact with highly talented and trained professionals and with a track record of performance. It is therefore imperative for managers to vet the recruitment agencies to figure out which agency to use in its placement process. Organizations that prefer to outsource the employment search and screening process must consider the market reputation, policies and practices, trust, expertise and cost of using recruitment agencies (Fudge & Stauss 2013). These factors should also be considered for individuals who seek their services because they will be in a position to understand their skills and promote their services.
The main reason organizations use recruitment agencies is due to their market reputation. A recruitment agency should have an influence on the relevant recruitment measures and be able to deliver high-quality candidates for organizations. A recruitment agency’s market reputation and ability to provide high quality and talented candidates for organization is of paramount importance. Positive market reputation enables agencies propagate and sell themselves to as many organizations as possible. Recruitment agencies chosen by HR mangers should prove their understanding of the industry and have to offer the expected recruitment mix of diverse strategies to enable organizations get highly talented individuals. The agency should be cooperative with high integrity and open to regular communication throughout the recruitment process. The agencies should be dedicated, respectful and trustworthy in their undertakings. An agency’s credibility and long term relationship with a variety of organizations is based on mutual respect and trust (CIPD 2008).
Managers should choose a recruitment agency that has been in service for some time and one with a good track record of serving its customers and clients. It should have the experience of handling various categories of customers. Agency’s prior experience in the field of hiring allows managers to look for professional candidates with up-to-date skills, knowledge, and experience (Blanpain, Zapirain & Langille 2009). Before HR managers decide to use a recruitment agency, they should research the agency’s previous candidate referrals and testimonials in offering professional services. HR managers also need to determine the agency’s specialization and the nature of the position they want to fill. Managers need to look at an agency in terms of quality of candidates submitted, candidates’ fit to job criteria, value added and feedback from recruitment agencies. A good recruitment agency should posses robust screening process for candidates through carrying out thorough checks before presenting them to the employers.
The employment agency chosen by an organization should obey labor laws and any other laws pertaining to the employment practice. A good agency will support and advise its candidates and employers on relevant employment laws while at the same time upholding these legislations and principles. The agency should be able to offer commitment, alternative employment solutions and value for services paid for. The commitment between employers and Agencies depends on mutual trust between the two sides. Recruitment agencies should uphold the value of integrity and always give accurate information regarding candidates payments once recruited. Managers should ensure that they work with local agents that they know and like for their good track record of sourcing highly qualified and talented candidates. HR managers should consider financial implications associated with using recruitment agencies in their recruitment process. Agency costs and terms of operation remain high in the employers’ agenda when using recruitment agencies. Managers should be able to learn the average cost of using recruitment agencies so that they know whether the agency is charging is a reasonable fee. Recruitment agencies are considered expensive especially when hiring candidates on a permanent basis (Armstrong 2006).
How HR managers and recruitment agencies can build a good working relationship
There is a need to develop and maintain good and productive practices between human resource managers and recruitment agencies. Over the years, the employer-agency relationship has been based on best values and low cost (CIPD 2008). Leading companies use a structured process to develop and build customer relationships based on the level and type of services provided, quality of management of customers and value-added perspective achieved through leadership and innovation.
HR managers can develop and maintain good working relationships with recruitment agencies by first sharing their strategic approach to resourcing. HR managers should be clear about their organizational needs so as to allow agencies to provide highly qualified and talented candidates. HR managers and agencies must endeavor to develop mutual trust by promoting openness and honesty in the course of working together. The managers should develop specific job roles and responsibilities that should be communicated to all agencies in the candidate search process (CIPD 2008). Human resource managers should promote an inclusive culture in the workplace by fostering an environment of professionalism and respect for personal differences. Open communication between managers and recruitment agencies is crucial in detecting disputes early enough so as to minimize chances of misunderstanding escalating into legally actionable problems. Managers and agents should work together in the management and promotion of ethical conduct of all employees.
HR managers play a crucial role in ensuring employees’ health and safety. They should utilize all the resources available to create and maintain health and safety standards for its employees. This is established by allowing open communication, implementing strict safety policies and providing health and safety training programs. Recruitment agencies and HR managers should develop and promote equality in their employment practices and establish an inclusive culture based on fairness, dignity and respect. They should provide equal employment opportunities to all candidates regardless of race, ethnicity, age, gender, sexual orientation or disability (Armstrong 2006).
HR managers and agencies must collaborate so as to achieve defined strategic goals. Integrating HR management into recruitment agency planning process and building a strong relationship, agencies will ensure that human resources contribute to achievement of organizational mission. HR mangers should supply recruitment agencies with an accurate job description and specification for the roles they are looking for to make it easier and quicker for the agencies to track down the right candidates. The two parties should develop transparency and work towards a common goal. Recruitment agencies should supply candidates on a timely basis to meet HR’s deadlines without compromising on the quality of the candidates. Respect between recruitment agencies and HR managers are fundamental for a long and fruitful relationship. This will allow employers to speak highly of agencies services and achievements with the agencies promoting an organization as the best place to work (CIPD 2008).
An organization’s success is purely dependent on its human resource. The process of hiring highly trained and talented candidates first starts with advertising, identifying, screening and selecting of successful candidates to take up organizational jobs. Recruitment agencies offer recruitment services to employers by providing a database of candidate’s from which selection is done. Organizations choose to use recruitment agencies to save on time, resources for recruitment, get highly qualified and talented candidates and them to get advice on market demands and how to improve their performance. HR mangers should consider the recruitment’s agency market reputation, expertise, cost and trust before accepting an agency to recruit on their behalf. HR and different agencies should work together collaboratively and explore how and where values can be added in the course of the recruitment process.
Since recruitment agencies posses a database of possible candidates to take up jobs in organizations, it is imperative for organizations to hire their services so that they are supplied with this database on a timely basis. Organizations with inadequate number of staff should use agency’s services to save of resources used for the recruitment process. This will also save on HR’s time which can be used in training and developing available employees. Organizations should be keen on recruitment agencies they choose by first researching on their reputation and cost of their services. HR managers should endeavor to develop excellent working relationships with recruitment agencies so that they are supplied with highly qualified and talented candidates.
Armstrong, M A. 2006, A handbook of human resources management practice. London:
Kogan Page Ltd.
Andersson, F., Holzer, H., and Lane, J. 2009, “Temporary help agencies and the
Advancement prospects of low earners: Studies of labor market intermediation. NBER: University of Chicago Press.
Blanpain, R., Zapirain, J. P & Langille, B. 2009, Employment policies and multilevel governance: Bulletin of comparative labor relations.UK: Kluwer Law International.
Chartered Institute of Personnel and Development CIPD) 2008, The relationship between HR recruitment agencies: A guide to productive partnership.
Cooper, D et al., 2005. Recruitment and selection: A framework for success. UK:
Thomson & Learning.
Florea, N. V. 2014, Using recruitment agencies to obtain the best candidates. Management and Eonomics, 1(73), 80-87.
Fudge, J & Stauss, K. 2013, Temporary work, agencies and unfree labor: Insecurity in the new world of work. New York: Routledge.
Gusdorf, M.L 2008, Recruitment and selection: Hiring the right person. Society for Human Resource Management (SHRM).
Neugart, M., & Storrie, D. 2006, “The emergence of temporary work agencies”,
Oxford Economic Papers 58 (1), 137-156.