Introduction:
-With changes in the workforce structure, how companies are planning to acquire talent is also changing.
– Find new and non-traditional pools of talent is essential
– Less dependence on recruitment agencies and emergence of talent marketplace
How Do Recruitment Agencies Generally Work?
Almost everyone is familiar with recruitment agencies in one way or another, but many people are actually unaware of how they work. Recruitment agencies work with clients straightforwardly on work opening and source quality up-and-comers. Clients then essentially pay a finder’s fee to the agency. In the simplest of terms, they act as an intermediate between candidates and company.
Process agencies commonly follow:
1- Agreement: agreeing and deciding the terms.
2- Profiling
3- Sourcing
4- Interviewing
5- Placing offer and Negotiation
6- Onboarding
Recruitment Agencies Vs External Talent Marketplace (will mention about FlexC here)
– Reasons why using talent marketplace is smart
Access to top talent, helps introducing diversity, helps with future planning, saves cost and time
Conclusion:
Will recruitment agencies disappear in future? No, the cake is huge enough for everyone to grab a piece. (will try to add stats here)
Agencies will need to change and adapt to the new ways of working.
Are Talent Marketplaces the Future of Talent Acquisition?
Workforce in the post pandemic world has various assumptions from their employers. While looking for jobs, candidates closely look at certain parameters. These include-engaging in meaningful work throughout their employment tenure, fair compensation and opportunities to grow, treated with respect. Hence many companies are making drastic changes in their hiring practices to improve the employee retention rate and suit candidate needs.
Since numerous associations are changing their workforce structure to hybrid, organizations should tap on new and contemporary ability pools to track down ideal competitors.
For most recruiting agencies, observing these sources can be somewhat intense. This has incited organizations to search for other reliable sources known as talent marketplace. Talent marketplaces are making it easier for organizations to hire on the basis of skills and connecting candidates to better opportunities easily.
How Does Talent Acquisition Work in the Post Pandemic Era?
01- Hiring Internally through Talent Marketplaces
Taking inside references and job postings a stride ahead, organizations are laying out talent marketplaces inside the associations also. Talent marketplaces not just assist workers with tracking down better open doors according to their inclinations inside the association, yet in addition take out the component of biasness through references. Employees are given a particular opportunity or project solely based on one of their many skills and experience. If done right, these talent marketplaces can offer benefits across talent acquisition, mobility & management, and organizational agility.
02- Closing Vacancies Through Recruitment Agencies
Almost everyone is familiar with recruitment agencies in one way or another, but many people are actually unaware of how they work. Recruitment agencies work with clients directly on job vacancies and source quality candidates to fill those vacancies. Clients then pay a finder’s fee to the agency. In the simplest of terms, recruitment agencies act as an intermediate between candidates and companies.
Process agencies commonly follow:
1- Agreement: While deciding to work in a recruitment agency, companies first need an agreement which generally includes the retainer fee or contingency fee structure.
2- Profiling: The following stage is when agencies interface with you to understand the requirements like job description, significant abilities and some other traits.
3- Sourcing: Agencies filter their own talent pool and organization to track down the certified applicants. They scan every application received & create a list of potential candidates. On an average, only 2% of applicants reach the interview stage.
4- Interviewing: The interview process generally has two phases. First, agencies conduct the interview to understand if the candidate is idea match. Selected applicants go to the second stage where they are interviewed by the organization.
5- Placing offer and Negotiation: When companies have finalized their perfect candidate, agencies also assist with the offer and negotiation bit. By taking this responsibility in their hands, agencies save companies a lot of time and effort.
6- Onboarding: If the company wishes to, agencies additionally help and guarantee smooth worker onboarding. Agencies help both the parties complete necessary paperwork and also ensure the new hire feels comfortable and welcomed.
Recruitment Agencies Vs Talent Marketplaces
The changing workforce structure requires better, dynamic and time saving tools for effective management. External talent marketplaces make it possible for companies to source and onboard talent, saving more time than hiring an agency.
01- Saving Money on Talent Acquisition:
As per a survey conducted by SHRM, the average cost per hire through traditional methods is around $4000. External talent marketplaces allow companies to post jobs and fulfill their needs at one place. Companies that are not looking to hire full time employees can avoid spending the same costs for hiring gig workers by using an online talent marketplace. Also, searching for new talent on the talent marketplace hardly poses any risk. This is because talent marketplaces give admittance to better data about the up-and-comer’s abilities alongside their capabilities.
02- Access to Top Talent:
While both methods ensure access to top talent, external talent marketplaces are a step ahead. Candidates in talent marketplaces show a great deal of initiative and zeal in addition to skills. Most of the candidates signed up on talent marketplaces have great experience. Even freshers have great confidence in their skills and impressive portfolios.
03- Future Planning:
The emergence of a hybrid workforce and gig economy is a clear indicator where the future of work is heading. With external talent marketplaces, companies can take advantage of emerging skills and technologies and predict any changes. This can help companies create better training programmes. Also a quality external marketplace will always keep important forecasts in check and implement new ways of working accordingly.
04- Ensuring a diverse Workforce:
The network of a recruiting agency is restricted to a certain nationality or region. Anyway with outer talent marketplaces, organizations get simple admittance to worldwide talent. For one position, you can track down candidates across the globe. This not only brings diversity but also brings different perspectives to the table.
05- Flexibility:
It is comparatively easier and cost saving to find and onboard people on a pay-per project basis from a talent marketplace. With external talent marketplaces, companies can hire people and create project-based teams. This allows them to get the work done faster with agility and flexibility.
Will Recruitment Agencies Eventually Disappear in the Future?
Recruitment agencies are not about to disappear in the future. However technologies such as artificial intelligence and machine learning are already seeping into the industry and will impact how agencies will work.
For instance, as per a report by Glassdoor, agencies receive on an average of 250 resumes for one vacancy out of which 4-6 candidates get a call for an interview and one is selected. Giving control of these time taking tasks to technology will save so much of the agency’s time.
As the traditional ways of recruiting are undergoing massive changes, agencies will have to come up with ways to adapt and work hand in hand with technology. Also it will be important for agencies to rely more on their selling skills. They must be able to influence and advise clients they will be working with.
Agencies will have to find new talent pools to solve their inability to tap gig workers. To solve these woes, recruitment agencies can partner with talent marketplaces like FlexC to connect with top companies and candidates and multiply revenue 10x. The platform’s in-built AI engine will help agencies in smart screening of candidates.
FlexC will give an innovation stuffed secure stage for agencies to follow, oversee and store competitor information bases.
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