IT Recruitment in Crisis: Agency or In-House?
27.07.2023
The global economy is experiencing another significant crisis, which has resulted in a tense atmosphere for many. Businesses across various sectors are exploring avenues to optimise their expenses, aiming not only to survive this challenging period but also to foster continuous growth and advancement.
Many people still consider IT recruitment expensive and try to rely on their efforts. Today we at Lucky Hunter will try to explain why a partnership with an IT recruitment agency (especially during difficult times) is more practical than building an internal recruitment department.
Many people still consider IT recruitment expensive and try to rely on their efforts. Today we at Lucky Hunter will try to explain why a partnership with an IT recruitment agency (especially during difficult times) is more practical than building an internal recruitment department.
Cost
It might come out as a surprise, but it's cheaper to collaborate with an IT recruitment agency than it is to create and operate in-house recruiting.
Typically, the invoice of an agency is a certain percentage of the candidate's annual salary, and it's a one-time payment after the completion of the job. When it comes to internal recruiters, you need to pay a regular salary, taxes, bonuses and other benefits.
Besides that, the cost of recruiting services and various job boards for publishing vacancies also falls on the shoulders of the employer — for example, on average, only CRM can cost about $ 4,000 per year.
Typically, the invoice of an agency is a certain percentage of the candidate's annual salary, and it's a one-time payment after the completion of the job. When it comes to internal recruiters, you need to pay a regular salary, taxes, bonuses and other benefits.
Besides that, the cost of recruiting services and various job boards for publishing vacancies also falls on the shoulders of the employer — for example, on average, only CRM can cost about $ 4,000 per year.
Consequently, despite the efforts in cost optimisation, the monthly salary payments to internal recruiters along with the expenses for all essential working tools, will still exceed the one-time fee charged by the agency for their IT recruitment services.
Another point in favour of IT recruitment agencies: there's no prepayment for a standard IT staffing service: the client pays for the service only after the candidate accepts the offer and starts working.
Speed
The prompt hiring of skilled talent plays a pivotal role in the success of numerous business processes. To achieve this, tech recruitment agencies leverage a diverse range of services and resources that enable them to swiftly identify and onboard tech professionals. For instance, Lucky Hunter, as an example, typically manages to fill a job opening within a remarkable timeframe of up to 14 days.
Moreover, collaborating with the agency offers the added advantage of saving valuable time. Instead of investing your efforts in reviewing countless CVs of potential candidates, you can focus on crucial decision-making and business development. The agency recruiters will handle various tasks, including:
Moreover, collaborating with the agency offers the added advantage of saving valuable time. Instead of investing your efforts in reviewing countless CVs of potential candidates, you can focus on crucial decision-making and business development. The agency recruiters will handle various tasks, including:
- Conducting an initial screening of applicants.
- Building a pool of suitable candidates who align with your specific requirements and demonstrate a genuine interest in collaborating.
- Conducting initial interviews and facilitating further communication with your company representatives.
- Providing feedback to the candidates throughout the process.
- Providing guidance on crafting a competitive job offer.
Expertise
Agency tech recruiters have experience handling a range of job openings, including complex cases. This experience gives them valuable insights into effectively resolving such challenges. The complexities may arise from unusual job profiles, unique job conditions, or other factors that make it hard to find suitable candidates. Nonetheless, the agency's recruiters have the expertise to navigate these situations and find the best solutions.
IT recruitment agencies usually have a comprehensive database of candidates, including those with specialised and rare skills. This database lets you connect with the most suitable IT professionals and accelerate the hiring process for job openings.
IT recruitment agencies usually have a comprehensive database of candidates, including those with specialised and rare skills. This database lets you connect with the most suitable IT professionals and accelerate the hiring process for job openings.
Agency recruiters possess practical experience in handling specific situations, such as dealing with lengthy lists of requirements. This firsthand experience boosts their efficiency when managing complex cases. Their expertise in navigating such conditions enables them to tackle challenging scenarios with the utmost effectiveness.
An IT recruitment agency can offer valuable insights by evaluating your recruiting processes from an efficiency standpoint. They can advise on optimising the processes to enhance your competitiveness in the hiring market. For instance, they may suggest streamlining and simplifying the selection stages or eliminating a long and potentially problematic test assignment that could deter potential candidates. This guidance can lead to more effective and successful hiring practices, ultimately benefiting your organisation.
An IT recruitment agency can offer valuable insights by evaluating your recruiting processes from an efficiency standpoint. They can advise on optimising the processes to enhance your competitiveness in the hiring market. For instance, they may suggest streamlining and simplifying the selection stages or eliminating a long and potentially problematic test assignment that could deter potential candidates. This guidance can lead to more effective and successful hiring practices, ultimately benefiting your organisation.
Case
A while ago, a fintech company approached us: they were looking for a blockchain developer but faced some difficulties due to the specific conditions that limited the available candidates. While working on this case, we advised the client to optimise the selection stages by eliminating the extensive test assignment. Furthermore, we recommended exploring other regions known for having experienced professionals who would also align with the client's preferred salary range. This approach aimed to make the hiring process more efficient and successful.
A while ago, a fintech company approached us: they were looking for a blockchain developer but faced some difficulties due to the specific conditions that limited the available candidates. While working on this case, we advised the client to optimise the selection stages by eliminating the extensive test assignment. Furthermore, we recommended exploring other regions known for having experienced professionals who would also align with the client's preferred salary range. This approach aimed to make the hiring process more efficient and successful.
Agency recruiters collaborate with companies and candidates, so they are always aware of the emerging trends in the IT market, which gives them a chance to develop effective strategies for technical recruitment.
A Complex Approach
Another widespread misconception is that recruiters only perform a CV screening. Candidate selection is much more complex than that: recruiters determine the candidate portrait, develop a search and motivational strategy, perform an initial selection, coordinate further stages and also assist in making an appealing job offer.
Additionally, an IT recruitment agency offers a bunch of services that can solve many tasks at once. For example, our agency offers a variety of services:
Additionally, an IT recruitment agency offers a bunch of services that can solve many tasks at once. For example, our agency offers a variety of services:
Guarantees
Also, many IT recruitment agencies offer guarantees: they provide a free candidate replacement within a specified period. It protects the customer from having to spend resources on re-selecting a specialist.
We are waiting for your inquiries! If you still doubt the effectiveness of the partnership with an IT recruiting agency — also fill out the form below, we will contact you and make all your doubts disappear :)
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Alexandra Godunova
Content Manager in Lucky Hunter
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