Small businesses have historically paid more per placement for agency recruitment than larger companies. However, new online recruitment marketplaces are putting power back in the hands of growing businesses, enabling them to ensure they pay the fair market rate for all their recruitment. Recruitment marketplaces are part of the global trend for new applications that remove inefficiencies from marketplaces to increase the value derived by all participants.
Fast-growing SMEs not only have different concerns when it comes to recruitment, in many ways their problems are also greater than those of more established companies. A recent study showed that ineffective recruitment has been identified as the largest barrier to growth by 20% of small businesses. Considering the problems faced by small companies – lack of time, limited budget and no devoted HR staff, – this is not wholly surprising.
In spite of these obstacles, small businesses have one of the greatest needs for effective recruitment, in terms of both quantity and quality. The hiring of new staff must keep up with the pace of growth in the business, and must also provide the high calibre candidates that are so vital in the early stages of development.
Peerius, a fast-growing retail technology company, is one of several start-up companies to have recognized the potential of online marketplaces to make recruitment cheaper, faster and more effective, and have been using TalentPuzzle – the UK’s and Africa's first and largest recruitment service of this kind – ever since.
A recruitment marketplace, such as TalentPuzzle, enables employers to anonymously post vacancies that may be viewed by a vast collection (1000+) of screened and peer-rated recruitment agencies at no cost. These agencies then compete to work on the advertised roles at a fee chosen by the employer. There is no need to repeatedly negotiate terms with several different agencies, since all registered agents have signed up to the standard terms of the website. Furthermore, the site centralizes the whole recruitment process for employers, enabling multiple members of staff to log on and review the progress in the hiring for each role. Overall, inefficiencies in the recruitment process are minimized creating time-savings for both parties. This subsequently allows recruiters to offer their services for cheaper – reducing recruitment costs to employers by between 15 and 30%.
As Peeriushas found, an additional benefit of online recruitment marketplaces is that they level the playing field, empowering small businesses to engage with agencies on their own terms. Peerius have also been grateful for TalentPuzzle’s understanding of the recruitment industry, which has helped in selecting the fair rate of commission for various vacancies. With an 8 week rebate period for candidates, a marketplace such as TalentPuzzle also guarantees that an employer is absolutely happy with the new hire before the agency is paid.
The bottom line is that Peerius and others have been able to ensure that they only pay what they have to in order to acquire the best talent. In the process, they have discovered a free tool that makes recruitment easier to manage – eliminating the need to splash out on a CRM system –as well as reducing paperwork, costs and time to hire. Ineffective and inefficient recruitment can so often hold back the development of a small-business by dominating the diaries of senior staff, soaking up more money than budgeted, failing to feed the demand for new staff, and delivering below-par candidates. However, by finding the right tools and strategies, effective recruitment can support and sustain the growth of a small business.
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