4 Disadvantages of Third-Party Recruiters

As an HR Manager it is imperative to make the best choices to impact the business and each employee. The wrong new hire can negatively affect everything from the integrity of the work to the relations of the current employees. Often companies will turn to third-party recruiters to assist with the hiring process. Combined with a strong referrals program and modern HR technology, these agencies can provide incredibly efficient services. Despite this, there are some things to consider before agreeing to a relationship. Here are some of the disadvantages of working with an agency for your recruiting needs.

1. The Cost of Recruiting

Working with a staffing company requires a fee for their services. If you use a temporary to hire employee you are paying the mark up over the employee’s salary which covers the administrative costs, taxes, and some profit for the agency. If you chose to hire directly from their pool of candidates you will be required to pay a percentage of the employee’s salary directly to the staffing company. These costs can be negotiable but are unavoidable. Before utilizing third-party recruiters, consider your budget and assess ROI potential.

Recommended reading: HRMS self-service - 6 steps to success

2. Lack of Control

For many Human Resources or Hiring Managers it is difficult to give up the control over the hiring process. You want to read every resume and interview every candidate. While the staffing company is in the business of consolidating the top candidates for your review it can be frustrating to take yourself out of the process altogether.

3. Indirect Candidate Access

Without being part of the staffing experience from the very beginning it is difficult to assess the individual employee before they arrive at your office. You need to trust that the recruitment company has conducted references, completed skills assessments, and researched their background.

4. Communication Issues

Probably the biggest disadvantage of working with a third-party recruiters is the communication. Each of the previous three bullets is also a product of this potential disaster. Individuals communicate in different ways and if you and the service are not on the same page it can be difficult to come to a shared agreement.

The best way to solve these problems is to make use of HRMS software - either within your organization, or your recruitment company’s system. The more documentation you have on all of these topics the less likely there will be disagreements and other communication breakdowns. Working with a third-party recruiters may or may not be right solution for you so do your homework and track your conversations and decide the best process for your next hire.

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Laura M. LaVoie

About the author…

Laura LaVoie has 15 years of experience as a recruiter in the temporary staffing industry. Laura also writes about 120 square foot houses and brewing.

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Laura M. LaVoie