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Recruiting

Recruiting Companies

Veronica Feldmeier avatarVeronica Feldmeier • 14 Jan 2020

Recruitment is the process by which companies attract, screen, interview and hire new employees for a position. While the rise of online job boards has changed the recruiting process -- making it easier for companies to do some things themselves -- there are still roles that require a more hands-on touch.

From filling highly-specialized roles to hiring many new employees back-to-back, your company may not have the time or network to find the right candidates. You may want to reach passive candidates who aren’t currently browsing job boards at all.

That’s where recruiting companies come in. You can hire an outside company to recruit for a specific role or to handle all of your new hirings. But what do recruiting companies actually do, and what are the pros and cons of working with them?

Types of Recruiting Companies

There are several different types of recruiting companies out there, so let’s start off by getting clear on our definitions.

First, is there a difference between the terms of recruitment and talent acquisition? There is, although the two terms are related.

Essentially, it’s the difference between short-term and long-term planning. Recruitment is focused on filling the role that’s immediately in front of you, while talent acquisition refers to having a big-picture strategy focusing on your overall HR needs.

You should have a talent acquisition strategy, especially if you have highly-specialized roles opening up (which can take months to fill) or experience faster than usual growth.

Now, what types of recruiters are you likely to encounter?

Agency recruiters

Agency or contract recruiters are the most flexible kind of recruiter. They’re sometimes referred to as temp agencies or staffing agencies. Their job is to fill positions as quickly as possible for a large number of clients in a variety of industries.

Think of them as one step up from a job board. They aren’t great for talent acquisition, but they can fill short-term or seasonal roles more quickly than you can independently. In many cases, they’ll have a pool of candidates who have already been interviewed and vetted, so they can send someone to fill your position the very next day.

They typically handle payroll and insurance as well, acting as the contract worker’s legal employer. The catch is that you’ll pay a markup on top of your employee’s hourly wage.

Contingency recruiters

The next type of recruiter is a contingency recruiter. These recruiters can help you find more highly-skilled candidates, but they only get paid if they’re successful.

This means they have an incentive to work quickly because there’s nothing stopping you from using multiple recruiters or hiring someone from a job board instead.

While they can take a lot of the busywork out of the hiring process -- from scheduling interviews to negotiating with the candidate -- they aren’t likely to spend much time on the bigger picture, so are less useful for developing a talent acquisition strategy.

Still, contingency recruiters are more specialized than agency recruiters. You can expect to pay them the equivalent of 20-30% of your candidate’s starting salary as a fee.

Recruitment firms

Recruitment firms are best suited for talent acquisition and hiring for highly-skilled roles. They’re referred to as retained recruiters because they’re paid a retainer, which may be a flat fee or a percentage of the new hire’s salary.

Because they’re paid regardless of how quickly they place a candidate, they can spend more time getting to understand your business and finding the right fit for a position.

Recruiting firms have a database of candidates they can draw from, as well as experts in your industry to screen them and vet them.

They may use a variety of strategies to find candidates, including seeking out passive candidates who are already employed but open to receive new offers.

Internal or on-demand recruiter

Finally, if you want to be more directly involved in the recruiting process yourself, you have the option of hiring an internal or on-demand recruiter.

An internal recruiter is usually a full-time, salaried employee who is hired to manage your recruiting process in-house.

An on-demand recruiter is an individual or agency to whom you can outsource your recruiting tasks on a contract or hourly basis.

These options are best for when you plan to focus on employee referrals, or when you have a very specific company culture and want your recruiter to have an insider’s perspective on what to look out for in a candidate.

How Do Recruiting Companies Help You Hire?

We’ve looked at some of the differences between each type of recruiter , but what specifically do recruiting companies do? Which tasks can you expect them to take care of for you, and what will you still have to do yourself?

Tailor your job description

First, a good recruiter will know exactly how to market your job to the right candidates. If you’ve been having trouble attracting qualified applicants, then you may be posting your job ads in the wrong place or failing to properly communicate your expectations.

From writing a good job description, to ensure that your salary and benefits are in line with industry standards, your recruiter will help you craft an effective job listing.

Publicize the position

Next, your recruiter will get your job listing in front of the right candidates. Depending on the position, they may advertise it on Internet job boards, distribute it via email lists and social media, or run it through their own internal networks.

Specialized recruitment companies may even have their own proprietary algorithms designed to narrow down the candidate pool and match jobs to candidates.

They can get your job in front of passive candidates who are already in their database, and individuals reach out to selected candidates to invite them to apply.

They may also try to sell the candidate on the role, and persuade them why they should consider leaving their current job to apply for this position.

Pre-screen and vet candidates

One of the key roles of a recruiter is to pre-screen candidates and reduce the number of underqualified applications that come across your desk.

For some roles, you may have a hard time finding qualified applicants, while for others, you may get more inquiries than you can realistically handle on your own.

Your recruiter can sort through resumes for you, filtering out those that don’t meet your requirements and politely turning them down. Then, they can follow up with promising applicants for a pre-screening or telephone interview.

While this doesn’t replace the need for an in-person interview for a full-time position, it can be sufficient for a temporary or seasonal job opening. Depending on the job, they may also run a background check or drug test at this point or at a later stage.

Present a shortlist for interviews

If you’ll be interviewing candidates yourself, then a recruiter will present you with a list of applicants for you to choose from. They’ll narrow it down to just a handful of candidates so you don’t have to spend more time on the interview process than you need to.

Then, they’ll schedule an interview, and handle any communications with the candidate before and after. This includes offering them the position, letting them know that you’ve found someone else to fill the role, or arranging for any additional interviews.

You may be tempted to make the job offer to them yourself, but it’s a good idea to have the recruiter do it if they’ve been the one communicating with the candidate.

Assist with negotiations and onboarding

Finally, the recruiter should be involved throughout the negotiation process. Remember, this isn’t a done deal, and if you’re recruiting a passive candidate, you may have to keep the negotiation confidential while they decide whether to leave their current position.

Your recruiter can streamline that process and smooth over any issues that come up. A good recruiter will even help with the onboarding process, handing them over to the HR team and checking in with them after their first day to see how things are going.

The Disadvantages of Working With Recruiting Companies

We’ve looked at some of the pros and cons of working with different types of recruiting companies already, so now let’s take a closer look at some potential downsides.

The cost

First, there’s no arguing that using an outside recruiter can come with a hefty price tag. A contingency recruiter and recruiting company can cost you as much as a third of your new hire’s salary, while a staffing agency will mark up your employee’s hourly wage.

That said, doing your own recruiting isn’t cost-free either. Even if you don’t pay anyone an additional fee to handle your recruitment tasks, you’ll be spending time and energy that you could be putting toward other parts of your business.

Mis-matched incentives

This disadvantage applies mostly to contingency agencies, who only get paid a fee if they successfully place a candidate. This means their incentives may be at odds with what’s best for your company.

For example, a shady recruiter could save their top-tier candidates for companies who pay a higher fee, giving you their second-best candidates.

Also, since they aren’t on a retained fee, there’s no guarantee they’ll come through with a qualified candidate at all. If so, you won’t be out any money, but you’ll have wasted valuable time that hasn’t gotten you any further along in the process.

A rushed fit

Another disadvantage to using a recruiter is that they don’t know your company as well as you do, and may recommend candidates who aren’t the right cultural fit. This is less of a risk if you use a recruitment company or internal recruiter who develops a relationship with your company, but it’s still a possibility in any recruitment process.

Since the process is being mediated through a third party, you’ll have fewer opportunities to interact with your candidate directly, and less control over how things play out.

Still, if you can avoid these pitfalls of using a recruiter, then they can provide invaluable expertise and time-saving techniques to streamline your hiring process.

Enter Hunt Club

Hunt Club offers three different levels of service to address some of the challenges that you might face when working with a traditional recruiter. First, you can use the Pipeline Search service to scale your team and add dozens or hundreds of new hires at once.

This helps you build your pipeline in advance so that you know exactly what you’re looking for, and aren’t caught off-guard when it comes time to grow your team.

Second, you can use the Executive Search service to find top talent recommended by leaders in your field. Hunt Club uses proprietary technology and referrals from industry leaders to find the right fit every time - with the majority of the fee paid upon delivery.

Finally, you can use Hunt Club’s Alliance Search service to prioritize internal hiring and referral recruiting, helping you find the best cultural fit for every role.

With a network of over 10,000 experts and five million passive candidates, Hunt Club uses the latest hybrid recruiting techniques to give you the widest reach possible. Fill out our contact form to get started with HuntClub today!

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Terms of use/Privacy policy

Last updated: September 26, 2018

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Hunt Club may send you, and third parties identified by you, service-related announcements from time to time through the general operation of the Site, such as to indicate that you have received a message from another user or to alert you of an event for which you have asked to receive alerts.
Hunt Club may use information you submit to the Site in a non-identifying fashion (unless otherwise permitted by you) in order to provide aggregate statistics regarding user membership and service hours completed from the Site and to provide personalized service opportunities to you.
We and our Contractors may store Collected Information for as long as needed for the purposes indicated in this Privacy Policy, which may be indefinitely. Hunt Club reserves the right to disclose, without your prior permission, any Collected Information if we have a good faith belief that such action is necessary to (a) protect and defend the rights, property or safety of Hunt Club, employees, other users of the Site, or the public; (b) enforce the Terms & Conditions; (c) if required by a legally valid request from a competent governmental authority; (d) respond to claims that any content violates the right of third-parties; or (e) satisfy any applicable law, regulation, legal process or governmental request.
Except for the above, we will not share personal information with companies, organizations or individuals outside of the Company unless we have your affirmative (and informed) consent to do so. We do not collect or share any sensitive personal information. Sensitive personal information is a particular category of personal information relating to racial or ethnic origins, political or religious beliefs or sexuality.
With whom do we share the information we collect? We may share Collected Information with certain of our Contractors (e.g., our web hosting provider) in order to provide the Site to you. We may also share Collected Information with some of our third-party service provider partners (e.g. social media sites such as LinkedIn) in furthering our mission or delivering the content, materials, and services available on or through the Site to you and any complimentary services to the services provided on or through the Site. We and our Contractors may also produce reports on Site traffic, usage patterns, and similar data generated from Collected Information, and we may share these reports with our third-party service provider partners and others.
Access to Your Information and Choices If you have questions about personal information we have about you or need to update your information, you can do so in your User Profile, or contact us at privacy@huntclub.com. If you would like to request to review, correct, restrict or delete personal information that you have previously provided to us, object to the processing of personal information, or if you would like to request to receive an electronic copy of your personal information for purposes of transmitting it to another company (to the extent this right to data portability is provided to you by applicable law), you can contact us at privacy@huntclub.com. We will respond to your request in accordance with the applicable law that governs the collection, use and deletion of your data and information. The requested deletion will be as comprehensive as possible but is always subject to issues outside of our control, including applicable regulations and laws, your actions and the actions of third parties. You can opt-out of receiving marketing and promotional e-mails from us by using the opt-out or unsubscribe feature contained in the e-mails. You can opt-out of receiving our newsletters by using the opt-out or unsubscribe feature contained in the e-mails. It is important to note that we may retain a copy of the information for archival purposes and to avoid identity theft or fraud.
You also have the right to lodge a complaint with the supervisory authority of your habitual residence, place of work or place of alleged infringement, if you consider that the processing of your personal data infringes applicable law. A list of EU data protection authorities is available at: http://ec.europa.eu/newsroom/article29/item-detail.cfm?item_id=612080.
How Do We Protect Information Collected About You? We have put in place certain security measures to safeguard Collected Information, but the storage and communication of Collected Information can never be completely secure. Hence, we do not guarantee that information that you transmit or otherwise supply to us, or any communications conducted on or through the Site, is or will be totally secure. If you become aware of any breach of Site security or this Privacy Policy, please notify us immediately. To further protect yourself, you should safeguard your account user name and password and not share the information with anyone. You should also sign off your account and close your browser window when you have finished your visit to our Site. Note that we will never ask you for your Hunt Club user name and password over email.
When providing information to Hunt Club or its Contractors, DO NOT put sensitive information such as your social security number, national identification number, tax identification number, or any other local, state or regional identification number in any communication or on your resume. Use your best judgment about whether and what information to provide. If restricted or prohibited by the local laws in the jurisdiction where you reside, do not provide us or otherwise include in your resume or profile sensitive information that reveals racial or ethnic origin, political opinions, religious or philosophical beliefs, trade-union membership, health information, genetic or biometric data, the commission of criminal offenses or proceedings or unlawful or objectionable conduct and any associated penalties. Be cautious when dealing with contacts outside of your own country, and never provide personal information or financial information such as credit card or bank numbers over the phone. Please report any abuse or fraud to us immediately.
Interactive Areas We may provide areas within the Site that allow users to post commentary and other materials. If we do, these interactive areas, such as discussion forums, are intended to enhance the user experience and build a healthy community around the products and services available through the Site. Hunt Club is not liable for information posted in interactive areas of the Site. You acknowledge that, should you participate in such interactive areas, the information you voluntarily post about yourself and third parties in such areas might be accessed, collected and used by third parties other than Hunt Club or our Contractors.
Access To and Correction of Information Most of the Collected Information about you on the Site is directly accessible by you through the Site’s features and you may modify or edit such information at any time by logging into your account and using the Site’s account editing functions. Please note that information you remove through such means may still remain in backup copies for a reasonable period of time.
You acknowledge and are aware that personally identifiable information that you have shared with other users of the Site through one of the communication channels on the Site generally cannot be removed by you.
If you would like to review any of the other personally identifiable information we have retained about you in our database, please send us an e-mail request for this information at privacy@huntclub.com. To help us address your request, please specify which information you wish to review. Once you have reviewed this information, at your request we will correct personally identifiable information about you that you state is erroneous. You should be aware, however, that it is not always possible to completely remove or modify information in our databases and servers although we will always make reasonable efforts to do so upon your request.
Choice/Opt-Out If at any time you would like to stop receiving notifications or opt-out of a feature, you may email privacy@huntclub.com to terminate your account. You should be aware, however, that it is not always possible to completely remove or modify information in our databases and servers although we will always make reasonable efforts to do so upon your request.
We may change this Notice From time to time, we may change our privacy practices, and this Privacy Policy, because of changes in relevant and applicable legal or regulatory requirements, our business practices, or in our attempts to better serve your needs and those of our other customers. We will try to notify you of any such changes, and a revised policy will be posted on this Site. We encourage you to regularly review the current version of this Privacy Policy on the Site.
Location of this Site This Site is hosted and operated in the United States. However, we and our Contractors may, in our effort to provide the Site, store Collected Information in the United States, or we may transfer it to, and store it within, other countries.
Those who access or use the Site from jurisdictions outside the United States do so at their own choice and risk and are solely responsible for compliance with local law. If you are not a resident of the United States, you acknowledge and agree that we may collect and use your personal information outside your home jurisdiction, and that we may store your personal information in the United States or elsewhere.
International Privacy Practices Company’s websites, including websites directed to residents in countries and jurisdictions outside of the United States, are operated and managed on servers located and operated within the United States. If you are using our Site outside of the United States, your data and information is collected in the country in which you are located and is transferred to the United States or another country where our servers are located. By using the Site, you hereby affirmatively consent to processing of your Collected Information in a country which may not have the same level of privacy protection as your country of residence.
Some countries that are not members of the European Economic Area (EEA) are recognized by the European Commission as providing an adequate level of data protection according to EEA standards (the full list of these countries is available here). For transfers from the EEA to countries not considered adequate by the European Commission, we have put in place adequate measures, including by ensuring that the recipient is bound by EU Standard Contractual Clauses, to protect your personal data. You can find a copy of these measures at: https://ec.europa.eu/info/law/law-topic/data-protection/data-transfers-outside-eu/model-contracts-transfer-personal-data-third-countries_en.
Third Party Service Providers Service opportunities appearing on the Site may be delivered to users by Hunt Club or one of our third-party service provider partners. Our partners may set cookies or web beacons or use other technologies that allow the partner’s server to recognize your computer each time they send you a service opportunity or update. In this way, third-party servers may compile information about where you, or others who are using your computer, saw their service opportunities and determine which opportunities are clicked on. This information allows a service provider network to deliver targeted opportunities that they believe will be of most interest to you. This Privacy Policy covers the use of cookies and tracking technologies by Hunt Club only and does not cover the use of cookies or other tracking technologies by any third-party service providers. Our Site does not respond to web browser “do not track” signals.
Our Site may contain links to other websites. These websites may be operated by companies other than Hunt Club and may have their own privacy notices which you should review if you visit those sites. We are not responsible for the content of any sites not owned by Hunt Club, any use of those sites, or those sites’ privacy practices.
Privacy of Children We understand that young people need special safeguards and privacy protection. We realize that they may not understand all the provisions of our policy or be able to make thoughtful decisions about the choices that are made available to our adult users. We strongly urge all parents to participate in their children’s exploration of the Internet and any online services, and to teach their children about protecting their personal information while online.
We prohibit registration by children under the age of 13 for the Site and no one under 13 may provide any personally identifiable information to Hunt Club or on the Site. We do not knowingly collect or solicit personally identifiable information from children under 13. If you are under 13, please do not attempt to register on the Website or send any information about yourself to Hunt Club. You agree to abide by these restrictions, and not to help anyone avoid these restrictions. If Hunt Club learns that we have collected personally identifiable information from a child under the age of 13 without parental consent verification, we will delete the information as soon as possible. If you believe that we have any personally identifiable information from or about a child under the age of 13, please contact us at privacy@huntclub.com.
California Privacy Rights California “Shine the Light” law permits its residents to request and receive information about our disclosure of certain catCBdgv egories of Collected Information to other companies for their use in direct marketing. If you are `a California resident and a user of the Site, you can request a copy of this information from Hunt Club. To obtain this information, please send an email message to privacy@huntclub.com with “Request for California Privacy Information” on the subject line and in the body of your message. We will provide the requested information to you at your e-mail address in response. Please be aware that not all information sharing is covered by the “Shine the Light” requirements and only information on covered sharing will be included in our response.
Changes to Our Privacy Policy Our Privacy Policy may change from time to time. We will not reduce your rights under this Privacy Policy without your consent in accordance with applicable law. We will post any privacy policy changes on this page and, if the changes are significant, we will provide a more prominent notice (including, for certain services, email notification of privacy policy changes). We will also keep prior versions of this Privacy Policy in an archive for your review.
Transfer in the Event of Sale or Change of Control If the ownership of all or substantially all of our business changes or we otherwise transfer assets relating to our business or the Site to a third party, such as by merger, acquisition, bankruptcy proceeding or otherwise, we may transfer or sell your personal information to the new owner. In such a case, unless permitted otherwise by applicable law, your information would remain subject to the promises made in the applicable privacy policy unless you agree differently.
Questions and How to Contact Us If you have any questions, concerns, complaints or suggestions regarding our Privacy Policy or otherwise need to contact us, please, email us at privacy@huntclub.com.