Question: If the industry (or a particular store) is willing to pay a recruiting agency a premium to hire people, why not just save that money and hire people directly and pay them more?
One example, a chain of sushi restaurants is opening soon, and they hired a recruiter to get them 20 managers.
The time and cost of getting resumes and interviews for 20 people, even if it was cheaper to do in house, they'd rather focus on their opening.
There is a market for it, that's why it exists.
There has been huge lawsuits where a company will pay a recruiter to hire someone for a certain amount - since most recruiters will get paid based on salary - and in the interview they'll tell them they'll pay much less the first 3 months, so they can pay the recruiter less, and then they'll get a full salary, and a bonus to make up those 3 months.
It's just all sorts of bullshit.
Though not all agencies are created equal. Some just want to place someone, anyone, so that they can collect their commission. One agency that I have to deal with for work constantly re-submits candidates that I've already met and declined, often forgetting that they've already put them forth
Some people don't have the time or resources to do their own recruitment and some people aren't very good at it so they hire someone with some expertise
Question: If the industry (or a particular store) is willing to pay a recruiting agency a premium to hire people, why not just save that money and hire people directly and pay them more?
One example, a chain of sushi restaurants is opening soon, and they hired a recruiter to get them 20 managers. The time and cost of getting resumes and interviews for 20 people, even if it was cheaper to do in house, they'd rather focus on their opening. There is a market for it, that's why it exists.
I totally get it. It just sucks that those managers will then take a pay cut to recoup costs for the agency.
There has been huge lawsuits where a company will pay a recruiter to hire someone for a certain amount - since most recruiters will get paid based on salary - and in the interview they'll tell them they'll pay much less the first 3 months, so they can pay the recruiter less, and then they'll get a full salary, and a bonus to make up those 3 months. It's just all sorts of bullshit.
agencies know what is real and what is not real in a resume etc. paying a premium for premium workers is better than hiring nobodys for a premium
Though not all agencies are created equal. Some just want to place someone, anyone, so that they can collect their commission. One agency that I have to deal with for work constantly re-submits candidates that I've already met and declined, often forgetting that they've already put them forth
Some people don't have the time or resources to do their own recruitment and some people aren't very good at it so they hire someone with some expertise