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Advantages and Disadvantages of Recruitment Agencies

Paper Type: Free Essay Subject: Commerce
Wordcount: 939 words Published: 20th Aug 2021

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One of the big advantages is that the company is not wasting a time to sorting the candidate’s resumes and conducting the interviews on the initial stages. The advantage of the hiring companies is to recruit people in a very short time because the agency has always saved the resume of the qualified candidates. And they quick start to the screening process and conduct the interviews, background checks etc. The hiring companies gain advantages from using professional recruiters as well.

The another advantages of the recruiting agencies if someone is already working somewhere and finding a job to elsewhere with no time wast, the agency will helps the candidates to find the job which is not being advertised to provide good quality job in a Varity of fields.

Today’s competitive market, it a big benefit for the companies and the candidates for both, taking advantage from the recruitment agencies as long as they can because the professional recruiters provides the maximum support the candidates and recruit the good quality staff for the final stage of the interview process of the company. In this way it is a big advantage for the both parties is that each knows the other is serious about the open position.

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One more advantage of the hiring agencies is that to serve the job searchers in long term or short term position on to the large and small business scale. Recruitment agencies also offers health and retirement benefits, According to the “Encyclopaedia of business”. The Americans uses these agencies to find work with companies such as Adecco, Kelly services help place the employees in the united state and Europe.

For many companies, it is a disadvantage that if the company have a one or two position available and decide to go to hire the recruitment agency, this decision will be the costly to hire the recruiting company.

There is another disadvantage for the company, if they have not hiring the recruitment agency and advertise publically for the senior level placement, it is risk for the company to lose her reputation and other competitors take advantage by using their tactics. It is best for the company to contact the recruiters to fill up the position confidentially.

If the recruitment agency is not to find the suitable candidates for the right position of the company it is time loss for the company. It is expensive to any company to pay the agency up to 30 % of the employee’s annual salary.

When company hire the employees through recruitment agencies then it has to bear extra cost because organization has to give the huge money to recruitment agencies for its services. Which directly impact on the overall profitability of the organization which results badly affect the financial sustainability of the organization?

Advantages and Disadvantages of Informal Methods

If organization hire the employees without following the complete procedure of recruitment and selection then these methods will be called informal methods like walk in interview given by employee without job announcement, applicant refer by existing employees.

This method is very cost effective because organization has not to advertise the vacancy, it means that it save the cost of advertising which directly positively impact on the profitability of the organization. The employees who have been hired to serve the organization, they are very comfortable because they have not to go through lengthy process. The employee who refer by the existing employee will be reliable because it has reference

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Within the organization, in case any deficiency; the internal employee has the grantee for him. When the employee has been transferred within the organization then it is very suitable for the organization because that employee already know the culture of the organization and no need for extra training about the organization vision, mission and objectives. In this way organization save the precious time, this precious time of employee can be utilized in some other productive task.

There are number of disadvantages of informal method. The first disadvantages of informal method is organization is not follow the complete process of recruitment and selection for hiring of new employee which result the organization cannot hire the quality candidate which definitely affect the performance of the employees, then it automatically affect the overall performance of the organization. So, through hiring informal methods organization will not be in the position to achieve its long term objectives and goals. By using this methods there is increase jellicy among the employee because when different employee hire different candidate and candidate of one employee has been hired then other employee with fell jellicy that this employee has been given favour and we have not yet been given such favour and organization never hired the employee which we refer.

At last, it can be concluded that organization used informal methods and recruitment agencies for recruitment and selection of new employees. When the organization hire the employee by using the recruitment agencies then company hire the quality clients because they are professional and well understand their field which positively affect the performance of the employee as well as organization. On the other hand, the company hire the new candidate by using informal method then it save the huge cost which it has to bear in advertising the new vacancy. Concisely it can be said that both methods has its own importance.


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