Rapid economic growth and high turnover rate created a new business opportunity of matchmaking between companies and job seekers. Some of these matchmakers such as employment agencies, technical recruiters, executor search firms (head-hunters) specialized in specific job areas while some are much generalized. Most of them are being paid generally about 30% of the new hire’s first year compensation but some charge a nonrefundable retainer or contingency fee for their expenses.
Recruiting companies may be very effective to find qualified candidates, helps your company to save money and time you would spend to obtain the right candidate. These companies have an active network of people in the industry and they can quickly reach the right person by screening respondents so that only qualified candidates are presented for evaluation. They can also do some of the negotiating part, which may not be pleasant for the company-employee relationship.
Surely, you should not ask for a professional service when company’s board is well informed about the right candidate, when hiring within the organization is planned or in some circumstances such as: when the pool of the candidate is not so large and is known by your management, when the position and its qualifications are well determined, when the position is highly technical with specialized knowledge and expertise or when it is low-level position.
In situations when the company is looking for someone in high-level positions, professional firms are often better choice than in-house staff at performing quick and confidential searching. It is also a better move to receive outside help when diversification or joint ventures create a new job area, which the company does not know much about or company needs a different skilled employee than it has in the organization.
Getting outside help from a professional does not mean that your company and its executives should not involve in the hiring process. Staying involved consists of some movements. This starts with selecting a consultant, not just a firm. You need to look for a consultant through interviews and ask for references from past clients so that you have an idea about how efficient this consultant works, also about stability and ability of the consultant’s team. Secondly, you need to be aware of potential conflicts of interest that may be caused by consultant’s will to find a candidate regardless of the candidate’s qualifications as most of the consultants are paid when a hiring is made from outside. Some consultants may not be looking for qualified candidates inside your company. This can be prevented by a fee-based compensation plan with the consultant. Last move is to work as a team with the outside firm. As no one knows the organization, the position and its qualifications better than its own executives do, involvement in all the processes from the beginning of the problem definition through the final offer is crucial to hire the right employee.