Recruiting Agencies Pros & Cons: Why Hired is Best for Tech Hiring

You may have considered turning to recruiting agencies to fill tech and sales roles. Even when inbound candidates are plentiful, finding the right top talent is a challenge. However, are agencies the best way to find future team members with long-term tenure potential? In this blog post, we explore the pros and cons of using recruiting agencies, shedding light on the factors to help you bring the best tech and sales talent to your organization.

Recruiting Agency Pros

1. Access to an extensive network

Recruiting agencies often have connections to a vast pool of professionals. On top of that, they proactively reach out to potential candidates – even those who are not actively seeking new opportunities. Instead of taking a shot in the dark, employers have the opportunity to leverage an agency’s existing database of people. The best agencies have developed industry connections and built relationships with qualified candidates.

• Hired candidates are engaged and actively looking. As a result, employers see response rates double or even triple, what they’re used to – often 60%+ compared to the 14% industry average. With access to a database of candidates in the millions, and tens of thousands active on the platform, Hired customers have more opportunities to connect with the right talent, right away.  

2. Efficiency

Most employers know finding and hiring the right candidate can be a time-consuming and resource-intensive process. Because recruiting agencies specialize in talent acquisition, you offload these responsibilities to focus on core business operations. With agencies handling screening, interviewing, and shortlisting, businesses reduce speed-to-hire.

• Spread thin? Add on Hired Sourcer for temporary or ongoing help sourcing, pre-screening, shortlisting, and managing communication with experienced candidates. Whether you’re without a dedicated recruiter or busy hiring managers need support, Hired Sourcer fills the gaps. (And it’s typically a fraction of the cost of hiring a contractor or agency!)

3. Specialized knowledge

While finding top tech and sales talent is hard, finding candidates with niche skills can be even harder. Tech recruiting agencies possess industry-specific knowledge and understand the nuances of the tech landscape. Their expertise in niche areas helps them identify candidates with the right skill sets, ensuring you find the candidate that checks off the list of requirements.

• Bundle Hired Assessments into your Hired solution to standardize tech skills assessments and free up your teams from live proctoring. Some candidates proactively take them to earn badges for their profiles.
  
  Save time when you use our filters to find talent who’ve proactively verified their skills with these technical assessments. By leaping ahead to interviewing tech talent with proven skills, it’s easier to hire faster and reduce your cost of vacancy.

4. Tech & sales hiring market insights

Recruiting agencies stay abreast of market trends, salary ranges, and candidate expectations. This valuable knowledge can provide you with a competitive advantage, helping you craft attractive job offers and tailored recruitment strategies. Agencies also offer insights on market demand and supply, assisting you in aligning your talent acquisition plans with current industry dynamics.

• Dedicated support from our Customer Success Managers works in collaboration with the Candidate Experience team to ensure you have a pulse on candidates in process. We are the leader in offering data and competitive insights to share with internal stakeholders at every step of your hiring funnel. Many customers highlight competitive insights as one of their favorite aspects of partnering with Hired for their tech and sales recruiting.

5. Enhanced candidate experience

Recruiting agencies have experience in managing the candidate journey from start to finish. They understand the importance of a positive candidate experience and ensure candidates are well-informed, engaged, and supported throughout the recruitment process. This professionalism reflects positively on your organization and helps to build a strong employer brand.

• Candidates on Hired benefit from a variety of resources, including workshops, AMAs, guides, a salary calculator, and a dedicated Candidate Experience Team to support them on their journey and provide insights 

Recruiting Agency Cons 

1. “They’re expensive”

While recruiting agencies provide value, their services come at a cost. Most agencies charge a fee based on a percentage of the candidate’s annual salary. For startups and small companies with limited budgets, this expense may pose a financial challenge. It is essential to evaluate the cost-effectiveness of using an agency compared to the potential benefits they bring to your recruitment efforts.

2. Lack of deep organizational knowledge

Recruiting agencies operate externally to your organization and may have limited knowledge of your company’s culture, mission, and specific needs. This can sometimes result in candidates who might not be the best cultural fit or fully aligned with your organizational objectives. 

3. Limited control over the recruitment process

Outsourcing recruitment to an agency means relinquishing some control over the hiring process. While agencies work closely with you, the final decision-making authority rests with your organization. Some stakeholders might prefer to be more hands-on throughout the recruitment process, which may be a challenge when working with an external agency.

4. Potential candidate pool overlap

There is a possibility of overlap in candidate pools if multiple organizations engage the same agency for their recruitment needs. This can lead to competition among clients for the same talent, potentially diluting the exclusivity of your candidate search. 

“We’ve used recruitment agencies in the past, but they’re pricey, they’re expensive,” says Logikcull’s Head of Talent Laura McDermott. “Sometimes agencies push somebody too hard who’s not actually a good fit. At Hired, there isn’t any of that.” Hired frees her from navigating the conflicts and external pressures that often come with recruiting agencies.

Unlike commission-incentivized recruiting agency personnel, Hired’s Candidate Experience team is unbiased about whether talent accepts a role. They are purely there to offer support and resources, such as interview coaching, salary calculators, evaluate options, and more. 

Why Hired is a better tech and sales hiring solution  

Hired is not a recruiting agency, a job board, or a social network. It is a solution directly connecting employers to vetted talent with thousands of skills across 50+ tech and sales roles. 

Organizations find in-demand tech candidates primarily in Software Engineering, DevOps, UX Design, Product Management, and Data Science. Employers needing sales candidates in Customer Success and revenue-based roles, such as Sales Management are also in luck. 

Essentially, Hired offers easy access to the best talent along with everything employers need to know about them from salary requirements to work preferences. 

“I think the best thing about using Hired is everything I need to know and would like to know as a recruiter from the offset, is almost always straight in front of me.”

Joe Miller, Senior Recruitment Manager, RVU

Hear from Joe about his experience with Hired and how it helped his tech recruiting productivity exponentially.

What’s more, in Hired’s full suite employers get unbiased insights, DEI features for more diverse hiring, tech skill assessments, and dedicated Customer Success Managers to support teams as they fill open roles efficiently. 

For lean teams within global enterprises or startups with a dedicated recruiter, Hired Sourcer comes to the rescue. Short or long-term, an experienced professional acts as an extension of your team to source, shortlist, and screen tech or sales candidates. They’re also great at maintaining consistent communication and keeping candidates engaged. 

Considering Hired over a recruiting agency? 

Companies switching from recruitment agencies to Hired often say their shift is driven by a lack of quality candidates with specific skills from agencies. Employers find they are more focused on speed over quality. On Hired, employers get both. In fact, companies have immediate access to candidates they need and save 45 hours of sourcing time per hire. 

Hired also specializes in matching experienced talent with employers they likely won’t see in the pipeline – even with an agency as the middleman. Typically, top senior-level engineers are not thrilled to work with agency recruiters due to constant badgering. Hired yields higher response rates and engagement from candidates – the platform has an 85% candidate response rate to all interview requests.

In addition to a vast pool of candidates, talent is also responsive on Hired. Candidates typically respond within one business day and have a 50% interview request acceptance rate. Plus, Hired integrations mean you can directly connect with candidates to avoid doing twice the work of updating a third party.

Speaking of saving time, agencies do not always understand your requirements. Hired specializes in identifying tech and sales talent across niches. Talent pros don’t have to waste precious hours reviewing resumes and conducting interviews unlikely to be a match. 

Hired positions candidates for long-term success; increased retention

Reflecting on her experience with Hired compared to recruitment agencies, Hired fulfills Logikcull’s interest in long-term employee success over making a placement McDermott adds, “We really pride ourselves on the tenure of a lot of our employees. Many have been here 10+ years… We’re recruiting people who are looking for a career and not just a job to come in and bank a paycheck. We want people who are looking to grow. We want people who really want to be able to make an impact.” 

For companies looking for tech and sales candidates interested in a career over a job, try Hired. Candidates placed through Hired have an 18% longer tenure with employers than average.

One financial services TA leader told us, “I think the challenge we had with a lot of third-party recruiters was the candidates they would present would frequently job hop. We look for long-term employees. I think the unfortunate reality of working with a lot of recruiters is their interests are not exactly aligned with ours because if their candidate stays for 0 days and then they place them somewhere else, they still get paid. 

They tend to present candidates that churn every year. Beyond that, sometimes it’s been finding specific skill sets, especially on the technical side, developers who know specific languages, etc.”

Cons often outweigh pros of recruiting agencies

Remember, partnering with a recruiting agency is not a one-size-fits-all solution. Assess your specific requirements, weigh the pros and cons of recruiting agencies, and select the approach that aligns best with your organization’s goals and resources. 

When you know the recruiting agencies pros & cons, discover greater ROI and employee retention with Hired – Find Candidates Now

About Hired: 

Hired is the most efficient way to fill tech and sales roles today. With unbiased insights, DEI tools, tech skill assessments, sourcing services, and dedicated Customer Success Managers, Hired works with companies around the world, placing more than 20,000 active and qualified candidates in new roles. Using better data, curated matches, and ways to reach new markets and talent with higher acceptance rates, employers save an average of 45 sourcing hours per role using Hired’s solutions suite. Backed by The Adecco Group, Hired is rated by G2 as a leader in Recruiting Automation, Job Search Sites, and Diversity Recruiting.