Towards a divorce between companies and recruitment agencies?
To write this article, we interviewed various hiring managers from small startups to large companies. Many expressed discomfort with recruitment agencies, citing phone harassment, perceived excessive fees, and questionable practices. Let's explore why these companies are steering away from recruitment agencies and how an innovative platform might reconcile these essential human resources players.
Lack of Regulation in Recruitment
Creating a recruitment agency is surprisingly simple. Without strict regulation, inexperienced recruiters flood the market, often ill-prepared and lacking professional ethics. Our survey found that 60% of business leaders consider recruiters unreliable. This saturation damages the profession's image and those who perform correctly. Companies seek quality service but often end up with unsuitable candidates.
Incessant Spam: A Reality for Companies
HR managers are overwhelmed with recruiter calls. A manager from a large company reports receiving up to 30 calls a day after posting an ad. Whether via "360° recruiters" in small agencies or dedicated sales departments in larger ones, the pressure is constant. Our platform offers a non-intrusive alternative, enabling more targeted and effective interactions, reducing stress and wasted time.
"Staggering" Turnover in Recruitment Firms
High turnover is common in recruitment, often due to unfulfilled promises to new hires. Recruitment experiences high turnover, almost a norm, as firms struggle to attract new recruits long-term. This leads to poor continuity for companies, which often have to repeat the same information to new contacts. This lack of stability harms trust between agencies and client companies.
Questionable Practices in Recruitment Agencies
Although in the minority, some agencies adopt questionable practices, such as presenting candidates without consent or poaching employees. A sector survey reveals that 15% of companies have faced pressure or unwanted solicitations. It's crucial not to generalize, as many recruiters maintain impeccable ethics, actively contributing to the sector's healthy development.
Agency Fees: Costs Deemed Excessive by Companies
The cost of recruitment agencies, often a high percentage of the candidate's salary, is criticized as excessively high. With fees ranging from 15% to 30% of the annual gross salary, some find them unjustified. Although some fees are justified by services rendered, the disparity between agencies for similar services is contested. Companies seek more transparency and consistency in pricing.
What Solutions to Reconcile Companies and Recruitment Agencies Again? Towards an Innovative Platform Solution.
Working with recruitment agencies remains crucial, especially with the growing talent shortage. A Korn Ferry report predicts a shortage of 85 million skilled workers by 2030. Our innovative platform facilitates this collaboration by offering features tailored to current issues, allowing for optimization of recruitment methods.
Innovative Features of Our Platform
Company Confidentiality: Limits unwanted calls and emails, centralizing communication on the platform.
Profile Review: Companies can efficiently and securely review candidates and recruiter profiles, with access to reviews and recommendations.
Cost and Terms Transparency: Define collaboration terms in advance and control expenses. Companies can specify maximum fees, avoiding financial surprises.
Ethical Charter: Ensures professional and ethical practice, safeguarding companies. Serious breaches result in platform banishment.
Our economic model relies on a subscription offered to recruiters for certain features, while the platform remains free for companies.