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Many employers feel 'ripped off' by recruitment agencies

Published on Jan 19, 2010 |

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New research suggests that employers feel ripped off by recruitment agencies, and feel frustrated that there didn't seem to be any consistency in the rates charged by agents.

The research, conducted by online recruitment marketplace TalentPuzzle, reveals that 76% of business owners and HR staff surveyed felt that they were not getting value for money. In addition, 77% were frustrated that there wasn't any consistency in recruitment rates and rebates, with businesses paying as much as 25-30% in placement fees.

Agency fees - little consistency in the market

"With so little consistency and transparency when it comes to fees it is easy to see why employers can feel ripped off by recruitment agencies," commented Virginia Raemy, CEO of TalentPuzzle. "It can also be very difficult for businesses to know what their competitors are paying, meaning that they could be paying over the odds or are missing out on the best talent. At a time when businesses are looking to reduce recruitment costs, the recruitment industry needs to start being more realistic and transparent, while ensuring the quality and targeting of CVs they send through improves."

Employers need agencies

Despite feeling ripped off, employers do recognise the value of working with recruitment agencies, with 92% of the respondents saying that they were planning to use an agency in the next six months. Furthermore, the ability to fill specialist positions and solicit better candidates were cited as the main reasons for engaging with them. However, the research suggests that recruitment agencies need to improve their service levels, as business owners and HR staff invest precious time briefing recruitment agencies, only to receive a lot of poorly-targeted CVs that don't meet their requirements. Therefore, according to the TalentPuzzle, it is hardly surprising that over half (58%) felt that briefing recruitment agencies can be a waste of time.

When asked about what frustrates business owners and HR staff most about recruitment agencies the 'overselling of candidates' (36%) and receiving 'unqualified CVs' (31%) were seen as the biggest frustrations, followed by the 'constant chasing for candidate/CV feedback'.

Need to work together

"It is clear that both recruiters and employers need to improve the way that they work together. They should have a symbiotic relationship, rather than seemingly working against each other. By working much more smartly and effectively together this would help raise the quality and targeting of CVs. This is a win-win situation for both parties, as it helps employers to reduce their time to hire and helps recruiters improve their reputation, increase their quality and hopefully increase their new business," added Virginia Raemy.