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Archive for April, 2011

The Recruitment and Staffing Industry

Sunday, April 24th, 2011

Every business beyond the smallest start-up or family-run company has to deal with the staffing process. Successful recruitment of qualified people to suitable jobs doesn’t happen automatically; candidates have to be attracted to apply, screened for suitability and then the most qualified person selected from the remaining pool of applicants.

As staffing demands are fluid, flexible and dependent upon an organisations current skill levels, workloads and financial health, few companies have any call for a permanent, ongoing recruitment division. Instead, by and large this process or some aspects of it at the very least are outsourced to a different company within what’s known as the recruitment industry.

The simplest and most traditional type of recruitment services company is the job board. Today, these are often found online but to a great extent even these sites are simply a more complex version of the traditional classified ad. Member companies pay a small fee to have job vacancies listed on the sites, which jobseekers can search for and often apply to through the website. One significant improvement though is that with an online job board, potential applicants can put their resumes or CVs online – changing the dynamic to one where the potential employer can contact the jobseeker with an offer if they see a resume they like.

Beyond this method of recruitment – mainly based upon the concept of “sourcing” vacancies to a potential audience of jobseekers – there’s the type of service that forms the core of the recruitment industry: the recruitment agency.

These businesses are based upon a model where they provide a candidate, or a pool of pre-screened candidates, to a client company seeking to make a new hiring in return for a price. Some agencies are paid only if the candidates stay beyond a probationary period; others are paid on a retainer to focus on the client’s recruitment needs, then paid a percentage of the candidates salary over time if they stay beyond the probationary period. Often, such as in the case of agencies which serve workers to temporary contracts (Temp Agencies) payment is given when a certain goal – such as the end of the contract or other such factors – is reached by the candidate for the client.

Another major section of the recruitment and staffing industry is the Headhunter. These are generally exclusively employed to find highly experienced and highly qualified candidates for executive level employment – or for workers who are in short supply and high demand. A more aggressive style of recruitment, this type of agency will often directly approach candidates and encourage them to attend interviews with their clients or even in some cases conduct such interviews themselves. This method works well in top-level recruitment in specialised fields, as a one-by-one approach can be much more effective in reaching a small number of people than a general advertisement – and particularly when those individuals may not be actively looking for employment opportunities.