Talent Development Centre

Tag Archives: staffing industry

A Beginner’s Guide to Recruitment Agencies

The Talent Development Centre is loaded with advice for working with recruitment agencies: How to choose an agency, how to grab a recruiter’s attention, questions recruiters will ask you, questions you should ask a recruiter, how to follow-up with recruiters, etc. But for newer job seekers and IT contractors, there are more basic questions that need to be answered: What does a recruitment agency do and why should I even work with them?

How Does a Recruitment Agency Work?

Recruitment agencies (also known as Staffing Agencies, Employment Agencies, Head-Hunters, etc.) help companies and organizations find workers, whether it be as full-time employees or for temporary, contract positions. Some agencies take a focused approach and recruit a specific skillset for their clients (for example, the majority of Eagle’s services centered are around IT contract professionals) while other companies take a broader approach and source a wide spectrum of talent for clients.

Recruiters at an employment agency usually conduct the complete recruiting and screening process for their clients, which includes not just searching, but also resume screening, interviewing, reference checking and negotiating with applicants. They continuously build relationships with professionals to understand their skills, interests and availability which ensures they can present candidates to a client as quickly as possible after receiving a request. Therefore, the end result of recruiters properly serving clients is that they also help job seekers find work.

How Do Recruitment Agencies Make Money?

Staffing agencies are always paid by the hiring company, and never by the job seeker.

In the case of permanent placements, the client usually pays the agency an agreed upon fee, which varies based on agencies, industries and roles. When a recruitment agency places a candidate in a temporary or contract position, the agency will hire that individual as a temporary employee or as an independent contractor in a business-to-business relationship. The agency then signs a contract with the client, stating they will provide somebody to perform the work. The staffing agency pays the individual for doing the work, and bills the client for both the cost of the individual and the cost of recruitment efforts. Hiring companies can be billed as a flat fee or an hourly rate that gets added to the worker’s hourly pay rate.

Should You Work with Recruitment Agencies?

You should cover every possible base when looking for a job and that includes talking to staffing agencies. Of course, applying to jobs directly and networking with people in your industry needs to happen, but so should building a relationship with a recruiter. They add value and help with your job search by providing access to unpublished job opportunities, providing advice to improve your resume, giving feedback on your interview skills, and connecting you to business resources such as contractor insurance (just to name a few).

Next time you’re scrolling through a job board and come across a bunch of postings from the same employment agency, don’t assume the situation is too good to be true. Apply to the job and meet the recruiter. While the job you originally applied to may no longer be available, you will be surprised at what else they can provide!

Do you have any other questions about staffing agencies and how they work? We’d love to clarify them for you! Just leave your questions in the comments below.

Staffing & Recruitment Industry South of the Border

Morley Surcon By Morley Surcon,
Vice-President, Western Canada at Eagle

Staffing Industry Analysts LogoLast week I attended the Staffing Industry Analyst‘s conference that was held in San Diego. In addition to taking a break from the cold Canadian winter, it provided the opportunity to get a sense of the current state of the staffing market in the USA.  This is important as the American market tends to lead the Canadian market in trends and innovation. It provides a glimpse into what may be coming for us in Canada.

Before I share some of my observations, let me explain what the Staffing Industry Analysts organization is and does.  The SIA describes themselves as:

Staffing Industry Analysts (SIA) is the global advisor on staffing and workforce solutions. Our proprietary research covers all categories of employed and non-employed work including temporary staffing, independent contracting and other types of contingent labor. SIA’s independent and objective analysis provides insights into the services and suppliers operating in the workforce solutions ecosystem, including staffing firms, managed service providers, recruitment process outsourcers, payrolling/compliance firms and talent acquisition technology specialists such as vendor management systems, online staffing platforms, crowdsourcing and online work services.

This organization is really connected. Their research is significant and the huge sample-size ensures accuracy.  Eagle is a member and we follow their publications religiously.  Over many years, their outlook has consistently been proven correct.

With this said, I’ll share a sample of interesting things that I learned… some of which may confirm what you already know/believe while some others may surprise you as it did me:

  • There is a world-wide shift in employment from permanent employees to contract/temporary labour.  This is both being driven by the people themselves as their preference and by employers recognizing the value of employing contingent workers.
  • Contingent workers grew from 12% of the working population in 2009 to 22% in 2016 with 44 million American workers now doing contingency work.
  • The adoption of MSP (Master Services Providers) has plateaued in the USA.  Although this offering is still growing globally, it is no longer the case in the US market.
  • Moreover, I was surprised to find that there was a marked move from outsourced, off-shored service solutions, back to in-house-managed solutions; companies are repatriating their business and technical teams to manage their own projects and operations.
  • The staffing industry in the USA is also getting crowded with nontraditional service providers such as online staffing solutions, cloud-based solutions with AI (artificial intelligence) and Robotic solutions coming on strongly.  This is resulting in a more complex and potentially confusing ecosystem.
  • Niche/specialized contingent labour providers are growing their market share at the expense of the generalists.
  • Globalization of staffing companies appears not to be growing as quickly as it had previously.  Through technology, globalization is in the reach of most companies big or small, but “buy-local” political philosophies and increasingly complex legal structure, laws and regulations are curbing the ease of expanding to new markets.

Although this is a very short list of information from the conference, you can find many more reports and statistics at SIA’s website:  http://www2.staffingindustry.com/row/Research/Research-Topics-Reports.

In summary, the staffing industry in the USA is very active and the outlook is quite positive. Technologies are coming out that will change the way recruitment agencies and the hiring companies source candidates and appears to be playing the role of disrupter for MSP’s going forward.  The overarching trend is for companies to bring their own projects back in-house after having tried off-shore or outsourced solutions.