For decades, internal Talent Acquisition teams have used recruitment agencies to assist them when a hard-to-fill role has been a challenge to fill internally.
Using the right recruiter can be an absolute lifesaver when it goes well, and a massive pain when the process goes rogue.
There is substantial value in using specialist recruiters at the right time, yet the old-school processes of engaging with external agencies through a preferred supplier agreement (PSA) has resulted in a number of pain points for employers.
This is where recruitment marketplaces come into the picture.
What is recruitment marketplace?
A recruitment marketplace is a platform that enables employers to connect with right recruiters, to do faster, more accurate and more cost-effective recruitment placements.
This is helped by capturing key metrics and ratings so employers can make decisions backed by data on who the right recruiter to work with is.
The same way users are saving time and money through the new marketplaces like Uber and Airbnb, we have found that employers are now saving an average of 40 percent in recruitment fees and bringing the time to hire down from 62 to 22 days through a recruitment marketplace.
The section below explains five distinctive ways recruitment marketplaces can solve problems that employers often face when it comes to outsourcing recruitment.
1. Freedom to work with the right recruiters
Partnering with agencies based on their brand names do not necessarily help to reach the recruiters with the exact skill set and proven ability.
By tracking performance metrics, a recruitment marketplace allows employers to choose to work with proven recruitment specialists, regardless of whether they work for the largest agency in town or an independent recruiter who works for themselves.
2. Cost saving
Fixed recruitment fees with PSA are more expensive than the rates available through the recruitment marketplace.
In a recruitment marketplace, the recruiters often already have access to the Talent that employers are looking for, so are willing to work at lower rates.
3. Less time
Leveraging off the time and costs that other employers have already invested into finding similar Talent. Just because a high-quality candidate hasn’t been selected for a role after weeks of screening, doesn’t mean that they won’t be right for your organisation.
4. Less admin
The process of selecting, setting up and negotiating terms with a variety of recruitment agencies that often involves the legal and procurement teams is quite time-consuming.
In the recruitment marketplace, the company’s terms of business are stored. The recruiters who only agree to your terms will reach out and work with you. Plus, in the case of TalentVine, there only ever needs to be one supplier set up which is always received well by accounting and procurement departments.
5. High accountability
Traditional PSA models lack accountability from the agencies as they know they will still receive roles from the employer regardless of the value they have been adding during the lifetime of the agreement.
In the recruitment marketplace, all recruiters are rated by employers and the industry peers on each role that they work on which provides clarity into a previously unregulated industry.
Their performances are also measured by the metrics that platform has so that employers can see the recruiters that deliver great hires each time and avoid the ones that throw a bunch of CVs against the wall hoping one will stick.
Historically, employers have been happy to pay fees up to 25 percent because they know the recruiter is starting their process from the very beginning.
However, when a marketplace is able to connect an employer to recruiters that have recently advertised a similar role, shortlisted twenty candidates, interviewed five and sent three to an employer where one was hired, this means the recruiter already has two amazing candidates ready to go. These are candidates who can be sent to an employer in a much faster time frame, and at a much lower fee.
An effective marketplace should also let you track your recruitment spending and your ROI. This proves the value to the rest of the business, as well as providing access to some cutting-edge recruitment tools that will make outsourcing recruitment a whole lot easier.
Cover image: TalentVine
This article is contributed by TalentVine.
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