What are third-party recruiters?

Third-party recruiters source and screen candidates to fill the hiring needs of other companies They can find candidates for all types of positions, including temporary and permanent, for both part-time and full-time positions.

Recruiting agencies can offer general hiring assistance or specialized hiring in specific industries. They work with several companies at once to fill various hiring needs. Instead of your organization advertising positions, sourcing candidates and screening applications, the third-party recruiting agency handles that part of the process.

Pros of using a third-party recruiter

If you’ve never leveraged a third-party recruiter, you might be unsure how it works and what you can gain from it. Here are some benefits of using third-party recruiters:

• Professional recruiting assistance: If you don’t have a dedicated and experienced recruiter on your team, an outside recruiting service can give you the expertise you’re missing. Since third-party recruiters focus solely on recruitment , they often stay current on industry trends and know how to find candidates effectively.
• Cost-effective: Smaller companies with minimal hiring needs might find it more cost-effective to pay the recruiter’s fee initially. Plus, you typically only pay the fee if the recruiter finds you a successful candidate.
• Large candidate pool: High-quality recruiting agencies have established relationships with large numbers of job seekers. They might already have a candidate in their system who fits your needs.
• Time savings: Since you’re outsourcing the recruitment process, you don’t have to set aside the time and resources to find candidates. Third-party recruiters might also help you speed up your hiring process because they’re dedicated to recruiting and already have a talent pipeline in place.
• Flexible options: Recruiting agencies can fill a wide variety of position types. You can often hire for temporary positions or temp-to-hire roles if you’re not ready for a full-time hire or have seasonal fluctuations.
• Investment in success: Third-party recruiters usually have to fill a role successfully to get paid. This can motivate them to find a good fit for your hiring needs.
• Thoroughly screened candidates: The amount of screening can vary by agency, but they typically do thorough checks on all candidates. This can help you feel more confident in the options and save time and money since you don’t have to conduct those screenings yourself.
• Less disruption: If your internal resources are limited, using an external recruiter lets your team focus on its core duties. You can keep operations running smoothly and get the new hires you need.
• Building relationships: Working with the same third-party recruiter for multiple hiring needs helps you build a relationship that can make hiring easier.

Cons of using a third-party recruiter

Choosing how to handle your recruiting is an important decision. If you’re considering a third-party recruiter, looking at the potential drawbacks can help you make a balanced decision. Here are some cons of this option:

• Potential for high costs: While the third-party route can be cost-effective for a few positions, the costs could add up if you use them for several positions. Consider your hiring needs and how much various options cost to maximize your budget.
• Lack of company knowledge: An internal recruiter is part of your organization and understands your culture. External recruiters should take the time to learn about your company, but they likely won’t understand it as well as an employee .
• Reduced input and control: You’re turning your recruiting process over to someone else, which gives you less input. You still have the ultimate hiring decision, but you have less control over the process of finding candidates.
• Candidate competition: Job seekers who work with third-party recruiters might work with multiple agencies and could be recommended to several organizations. This could increase the competition for your preferred candidates.
• Decreased connection: Handling the recruitment and hiring process in-house helps you build a relationship with your new hire from the start. If a third-party recruiter handles most of the interactions, you won’t know a lot about the new employee upfront, and it could take more time to build connections with your team.
• Communication: You’ll need to be in frequent communication with the recruiterto get information about the status of your hiring campaign. Third-party recruiters often work with multiple companies at once, so you’re sharing their attention with other companies. You might not get the direct communication or full attention you want.

Choosing a third-party recruiter

Being thorough when you choose a third-party recruiter helps you get better outcomes. Here are some tips for choosing a third-party recruiter:

1. Determine your needs: Knowing your needs helps determine if a recruiter can meet them. This includes the type of candidate you’re seeking and your hiring timeline.
2. Set your budget: Having a number in mind helps you compare the pricing for different recruiters to find one that works for you financially.
3. Explore the services: The range of services can vary, so ensure the agency offers everything you need for your hiring process.
4. Consider specialties: If you’re hiring for a specialized role or in an industry that requires specialized skills, consider recruiting services that cater to those areas. They might better understand your needs and be able to screen applicants for those skills more effectively.
5. Understand the screening processes: Ask how they screen applicants and what types of checks they run, including background checks, credit checks, employment verification and reference checks. Thorough screening can save you time and may increase the quality of hire.
6. Research its history and reputation: Check online reviews to get an overall feel for the third-party recruiter’s reputation.
7. Check references: You can also ask for references from recent clients of the agency. This allows you to ask specific questions and hear about their experiences from the client’s perspective.

FAQs about third-party recruiters

How do third-party recruiters get paid?

A third-party recruiter typically earns a commission based on the candidate’s salary. The recruiting agency usually charges a fee based on a percentage of the salary for the position. Say the position you’re filling pays $100,000 per year. The agency might charge a 15% fee or $15,000 if they fill the role. The agency then pays the specific third-party recruiter part of that fee.

What makes a good third-party recruiter?

A good third-party recruiter understands your needs. They’re well-versed in general recruiting and your specific industry, and they stay on top of hiring trends. They also know how to pique the interest of candidates and keep them excited about the role so they don’t drop out of thehiring process.

Is paying a third-party recruiter worth it?

Deciding if it’s worth outsourcing your recruiting depends on your situation. If you don’t have an HR department or an internal recruiter, using an outside agency could be beneficial. It may be worth it if you’re filling a highly technical position or one that’s difficult to fill due to a limited number of candidates with the correct qualifications. Weigh the costs with the benefits to help you decide.

How can you get the best out of third-party recruiters?

Communicate your needs early and often. Hold the recruiter accountable and be honest with your feedback on the quality of candidates they’re providing. Asking many questions before and during the process can help you fully understand what’s happening. The recruiter handles a large part of the recruiting responsibility, but staying involved is also important.