The process by which a diverse work force are recruited and hired could be tedious and time consuming for the organization. In addition personal interviews, required vacancy announcements, and selection process involves a series of internal recruitment and hiring policies or practices that solicits a lot of energy from the people facilitating the paper works and search. Moreover maintaining one person to work for this is already eating up cost. The organization can save more if they outsource recruitment to employment agencies and just give insight about the attitudes and beliefs underlying hiring decisions. A set of policy guidelines agreed by both parties could be concluded after. The extent of the risk pertaining candidate profiling and background check is at the recourse of the employment agency. The organization has much to gain from the contract than lose, even if they decide to do it on their own the benefits of using an employment agency far exceeds than the latter.
Contract agencies fill up positions for temporary work direct from their database of contract workers. They conduct their own recruitment process and specialize in helping supply manpower without any cost to the clients. Income is only derived from their fee taken as percentage of the billing for each worker. The employment agencies through which the workers were hired were considered as the primary employer and not the organization itself. This follows that the benefits and wages of these workers were maintained and handled by the employment agencies themselves (Davidov & Langille 2006). However the organization may suggest that the agency offer their workers minimum benefits and wages to avoid disparity from their full time employees.
Most of the time agency contractors perform the same functions as the full time employee. This could be frustrating once they know the considerable difference between their wages and them performing the same duties and responsibilities. Employment agencies also maintain user friendly interface websites that allow job seekers to create job alerts. So the moment a match is found it automatically creates a job alert to the user which is a great time saver rather than finding candidates doing the recruitment and advertising on their own. The recruiter is made to understand the requirements of the position as well as the firm’s culture and character. This will enable them to implement the appropriate prescreening and testing procedures in the consideration of candidates. In the agreement a short term guarantee is even provided. The agency normally replaced unsatisfactory workers during the guarantee period with no recourse to the organization.
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So what makes recruitment through employment agencies a success? One only has to convert the time spent in the hiring and recruitment process into cash including the salary of the person handling it. Any company would actually run for it for all the savings they could get from eliminating one crucial time consuming tedious activity. Second is by spilling benefits out of defining total compensation. Note that total compensation means the sum of the salary plus fringe benefits but not limited to health insurance and other medical reimbursements to salary increases. Eliminate fringe benefits, medical and health. What remains is only the salary. Sum up what was eliminated and note the savings one makes out of it. And third which is of great importance is tackling labor laws left to subcontractors such as the employment agencies to enforce. The legal relationship between the agency and the temporary worker outlasts temporary job. However the temporary job was not meant to establish any renewal of employment contract. Much to the advantage of the organization said temporary worker can also be considered as candidate on a permanent basis depending on performance. The organization has much to gain than lose from outsourcing their recruitment process to employment agencies.
References
Davidov, G. & langille, B. (2006). Boundaries and frontiers of labor laws. Oxford: Hart Publishing.
Saturday, January 5, 2008
Recruitment through employment agencies
Posted by Shirley Bongbong at 1/05/2008 07:18:00 AM
Labels: outsourcing recruitment
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