The demand and competition for IT talent make the recruitment process costly and challenging for most companies. Many of them decide to partner with recruitment agencies. However, as the number of vacancies that need filling piles up, the cost of hiring agencies can quickly skyrocket, too.
Let's find out how to get the best price from a recruitment agency and ensure you don't exceed your budget while searching for the best IT candidates for your business.
1. Ask for fixed or capped fees In negotiations with the agency, inquire about fixed or capped fees. This way, you can agree on a predetermined fee regardless of the candidate's salary. It provides predictability in your budget.
2. Consider recruitment platforms over agencies Recruitment platforms like MatchIT can be significantly more cost-efficient than agencies because their HR specialists have a different collaboration model with a platform than traditional employees.
Moreover, with such platforms, you have access to a team of hundreds of HRs instead of just several specialists with a limited pool of candidates. This means more candidates, faster. For example, MatchIT offers access to a global pool of candidates and promises first candidates within 24 hours.
3. Negotiate fee structures Many recruitment agencies are open to negotiating their fee structures. Discuss the possibility of reduced fees, especially if you plan to provide them with multiple job openings or expect a high volume of hires.
Review your agency's payment policies, particularly hidden fees, prepayments, etc. MatchIT, for example, offers any payment model imaginable, including the ability to stretch the recruitment fee for up to 12 months.
3. Consider an exclusivity agreement You can sign an exclusivity agreement with a recruitment agency. Exclusive partnerships can lead to cost savings, as the agency may be more willing to reduce fees in exchange for your commitment to working solely with them.
4. Use agencies for retained searches for key roles While retained searches often involve higher upfront fees, they can be cost-effective for filling key IT roles. The dedicated focus and resources provided by the agency can lead to a quicker, more successful hire.
5. Outsource selected recruiting functions Consider outsourcing non-core recruiting functions, such as administrative tasks, to reduce costs and free up internal resources for more strategic recruitment activities.
You can also directly source your candidates while working with an agency. Thus, you’ll actively participate in candidate sourcing and only partially use your agency’s services. This can significantly reduce fees, as you pay for the agency's support in specific stages of the recruitment process.
6. Evaluate recruitment metrics Continually assess the effectiveness of your recruitment strategies and agencies by tracking key metrics like cost per hire, time to fill, and the quality of candidates presented. Use this data to refine your approach and identify cost-saving opportunities.
In conclusion, getting the best value from a recruitment agency when hiring IT specialists requires a combination of clear communication, well-defined expectations, and a partner who understands the nuances of the IT industry.
To reduce costs without sacrificing your recruitment process and benefit from a full range of outsourced services, consider partnering with recruitment platforms rather than traditional agencies. MatchIT is one of them. They offer access to a global pool of candidates, as well as a team of 300+ HR specialists with IT industry experience and flexible payment policies with no prepayments.