Why should we use a recruitment agency instead of in-house staff?

There has to be a reason for our existence. There has to be a reason as to why so many recruitment agencies are sprouting out over the years. There has to be a reason for their continued success. There has to be a reason why the industry has grown rapidly throughout the years.

Firstly, large firms should definitely use a recruitment agency as compared to the in-house human resource department. Large firms have a lot of ongoing activities and will need to hire a huge amount of manpower in order to manage the necessary workload. Hence, this might be a strain on the human resource department of the company. In addition, they might be unable to find sufficient people in time for the company resulting in a large amount of revenue being lost and profit being adversely affected. With a recruitment agency being hired, they will be able to find the required number of workers as long as sufficient time is given in advance.

Next, recruitment experts have larger access to a greater pool of candidates (Hughes, 2019). These candidates are already in the network of the recruitment agency and the agency has accumulated this network over a period of years. With word of mouth and recommendations, the agency is able to further expand the network to friends and relatives of jobseekers. This is especially useful for large companies entering into a brand new country or region with no contacts and networks in place.

Then, the recruitment agency also has industry knowledge that companies might not have. They have more specific knowledge and know-how to sieve out the candidate with the most relevant experience and fit with the potential employers. This allows the recruitment agency to easily find the best-fit candidate with the appropriate skills for the job. Moreover, it is vital for them to find the right candidate because if the candidate is deemed to be unsuitable or if he left the job within 6 months (Martic, 2018), the recruiter will be liable to find another candidate. As a result, there will be an added workload and additional costs being incurred. So, they have an interest in ensuring the new hire succeed in the workplace.

Lastly, a recruitment agency is able to provide a unique psychometric test for all candidates reducing the chances of a job mismatch. A psychometric test is defined as a standard questioning system based on measurable norms to quantify a candidate’s mental capabilities and behavioural style. It is based on both scientific and psychological research and accurately depicts how the candidate will handle specific responsibilities and situations in the work environment (Campling, 2019). Essentially, the ability to interpret the results is also key as candidates with negative traits such as being easily distracted can be eliminated straight away. Candidates with traits essential for certain roles such as having an eye for detail for an accounting job could be shortlisted. Thus, this unique psychometric test if done properly is able to save time and increase the probability of a job match significantly. However, like all personality tests in the world, the psychometric test is not 100% accurate and will be subjected to bias and inaccuracies if not properly administered. Candidates might choose the option that makes the most logical sense instead of choosing the option that they normally do. They might not be able to control their emotions in certain real-life situations.

In conclusion, having a recruitment agency to aid the hiring process will greatly help the company. This will allow the company to focus more intently on their main business instead of fretting over new hires. Yet, communication between the recruiter and hiring company is vital to ensure that the interests and goals align and the recruiter is able to clearly know the kind of candidate that the hiring company is looking for. While recruitment agencies are growing rapidly, there is still room for improvement as they try to expand their network, reach, and processes to facilitate the hiring process.

JopHopin Asia.


Martic, K. (2018, November 20). Medium. Retrieved from Medium: https://medium.com/hr-blog-resources/4-good-reasons-to-use-a-recruitment-agency-308956f5c7eb

Hughes, A. (2019). Coburg Banks. Retrieved from Coburg Banks: https://www.coburgbanks.co.uk/blog/attracting-staff/why-use-recruitment-agencies/

Campling, B. (2019). Recruitee. Retrieved from Recruitee: https://blog.recruitee.com/psychometric-tests-for-recruitment/#:~:targetText=What%20is%20a%20psychometric%20test,psychological%20research%2C%20studies%20and%20results.

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