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  • Why You Should Think Twice Before Working with a Recruiting Agency

    Why You Should Think Twice Before Working with a Recruiting Agency

    Are you considering working with a recruiting agency to fill a position in your company? If so, there are a few things you should think about before you jump on board with using recruiters. While it’s tempting to go this route, especially with a difficult-to-fill job, it’s important to make sure you’re prepared for everything that goes with working with recruiting agencies.

    Costs

    The most important question to ask before your company works with a recruiting agency is: are you prepared to pay a fee? Working with recruiting agencies can get rather costly. So before you start, it’s crucial to know if their fees are in your budget. You might need to consider if it’s more feasible to hire an internal recruiter if you have a large volume of roles, for example. If you’re prepared to pay a fee to find top talent, then you should become familiar with the types of recruiting services available to your company.

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    There are several different types of recruiting agencies around, each one with its own fee and guarantee structures.

    1. Contingency

    Contingency agencies send in candidates they find and take a percentage of the annual salary for the position after the new hire meets the guarantee period. (This one is pretty standard for agencies, and is also how Elevano works).

    Cost: Generally 15%-25% of the annual salary 

    Guarantee: Typically sixty days

    2. Retained

    With retained recruiting agencies, your company pays upfront and generally gives the agency exclusive rights to fill the position. This type is rarer and typically used for very difficult to fill or high-level positions.

    Cost: 10% of annual salary on average to begin recruiting, then another 10-15% after hire.

    Guarantee: Around six to twelve months

    3. Temporary/ Temporary to Permanent Hire

    These agencies send your company temporary workers who come and go, or if your company finds them to be a good fit, transfer to your payroll. Workers’ contracts are bought out for a fee, or after a certain time period you can get the worker for free. The buyout generally features a sliding scale. In other words, the sooner you the worker is on your payroll, the higher the fee you pay.

    Cost: 20%-50%of the hourly wage

    Buyout: Typically after 90 to 120 days

    Communication

    Sometimes, communication is a problem when it comes to working with a recruiting agency. Recruiters need to completely understand what skills candidates should have for the position you’re trying to fill. In addition, they should be familiar with the responsibilities of the job and any other information that helps them find the right candidates or job details candidates should know. All of this information can sometimes be difficult to communicate, especially if you only communicate with agencies via email.

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    Poor communication is all too common in the recruiting industry. That’s why Elevano does recruiting differently. You won’t chase us up with phone calls, e-mails and texts. Our clients are our first priority. Fortunately, our automated recruiting process means that our Account Managers are available to speak to you whenever you need them. That’s because we spend a lot less time on repetitive (ex. data entry) tasks, and more time finding the perfect candidates for your role! In addition, we’re well-versed in all things technical, with our own Co-Founder coming from a software engineering background himself!

    Recruiters Don’t Always Know What Your Job Involves

    As mentioned earlier, recruiters need to know the necessary information to find the right candidates. However, they don’t always know exactly what the position they’re recruiting for involves. Recruiters may know your industry’s lingo. However, for more technical jobs, there’s a chance they don’t really understand what the daily responsibilities are of the position.

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    At Elevano, we’re proud of our company history. In fact, we leverage our technical background to bring our clients better candidates, faster. How? We know the tech industry, because our founders came from there!

    Process

    Another question to ask before working with recruiting agencies is “Do you have a process to support working with an external agency?” If the answer is no, you should probably think twice before working with a recruiting agency, or at least until you have a process in place. It’s also important to make sure your internal staff are able to deal with candidates coming from recruiting agencies.

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    We work closely with your hiring team to make sure everything runs smoothly. With almost a decade of experience on this side of recruiting, we know what it takes to build strong, long-lasting relationships with our clients.

    Conclusion

    There are many reasons why you should think twice before working with a recruiting agency, however, if you take these main concerns into consideration, a recruiting agency may still be the answer to your problems. The important thing is to be prepared before working with one.

    Fortunately, Elevano recognizes the impediments that clients face when working with recruiting industries. That’s why we’re confident that you’ll love the way we do recruiting. We know what clients don’t like, and we know what it takes to bring them top notch candidates as efficiently as possible. So if you’re in need of a recruiting agency that specializes in the technology industry, Elevano may be just the solution you need. Focusing on specialized technology, Elevano provides qualified candidates that have the qualifications and qualities you’re looking for.

    Top 3 Reasons Why Recruiters Get a Bad Rap

    Top 3 Reasons Why Recruiters Get a Bad Rap

    The general public’s perception of recruiters and recruiting agencies is definitely not the best. Some would go as far as to say they’re referred to as “in-human” resources. Unfortunately, there are some recruiters who may fit this idea, however, not every recruiter and recruiting agency is solely out to make money off you.

    Our Co-Founder, Amir, shared his thoughts on why mistrust exists in recruiting.

    What Do Recruiters Actually Do?

    One area of recruitment that lends itself to misinterpretation, and ultimately to bad perceptions and reputations, is what recruiters do, as well as who they actually work for. Sometimes, job seekers think that recruiters work for them, instead of the company offering the job.

    “Too much mistrust exists from the candidate pool. There is actually two issues, the candidates who have mistrust over the motives of the recruiters, because obviously partly recruiters are motivated by commissions and clauses. That overrides a lot of the conversation.”

    Recruiters ultimately work for the company with the job listing, paid by them to find candidates for the position. This means that recruiters will generally prioritize their time for the company, which can sometimes lead to job seekers thinking that recruiters aren’t helping them enough to find a job.

    Black Holes of Communication

    Oftentimes, job seekers are left hanging as the interview process continues or closes. This can result from poor communication between the hiring manager and the recruiter about interest or next steps with a candidate, or sometimes it happens due to recruiters being overworked.

    Over 50% of candidates deal with frustration over not knowing where they are in the hiring process. This is where an email or a call from a recruiter can go a long way. As for the second communication fault, recruiters are often working on finding candidates for many positions at one time. This sometimes causes them to immediately move on to the next position as soon as one closes and forget about sending a follow up email with candidates.

    Not getting a call or email at the close can leave a bad taste for recruiters. Fortunately, there are recruiters out there who make sure to take the time to reach out to candidates.

    Lack of Value

    There is also some skepticism about the value that recruiting agencies, or recruiters in general, provide.

    ”I do believe that they are skeptical that we provide any value. That’s actually forced Elevano to swim upstream and shout at the top of our lungs that there might be some differentiations that is of value to you guys.”

    Some job seekers, especially those who have worked with some less than ideal recruiters before, may question if a recruiter will actually deliver any value. After all, they’re trusting the recruiter to be their advocate.

    “As a recruitment agent or whatever your title is, if you are doing a good job and you are an advocate, and that candidate believes that you can deliver value based on being an expert in whatever it is you are representing. Then, why would they not want somebody who they are not paying to go do all the leg work, do all the set up, do all the negotiations, do all that work for them?”

    In Conclusion

    While recruiters and recruiting agencies often get a bad reputation with many job seekers, and just the public in general, it’s important to remember that not all recruiters are the same!

    Top 11 Questions Answered by Our Recruiting Expert

    Top 11 Questions Answered by Our Recruiting Expert

    “Most people don’t like to be convinced of anything. That actually goes counterculture to getting people to agree with you. That’s why we’re now fully vested and centered on social proof.”

    Find out more about Elevano, it’s recruiting process, and the man who started it all.

    Taken from the ‘Share Your Story‘ Podcast with Michael de Groot.

    Q: Tell us a little about yourself.

    A: I was actually born on the East Coast of the States in around the Washington D.C area. My parents were immigrants, the classic $100 to America story. I went to school on the East Coast. Graduated with technology degrees, Master’s in technology. My family was actually moving out West for my brother who also is my business partner, but he was gonna play tennis at a university out in California in Orange County, and my options were to take a shiny new job with Verizon, at a very nice entry level starting salary or turn that down for nothing.

    Q: Why did you start your recruiting agency?

    A:  Came out here, got here and realized, “Well, now I got no job, living with my family, that’s nice. But I’ve got to find a job.” I found a job, dug into the engineering side.

    Slowly, I realized that while I could do software development and the sort, it really wasn’t what was driving me. I realized I enjoyed talking to people and the meetings and the prep work a lot more.

    I started to pivot into more of an analyst role, got into business intelligence, where I could get towards the business side of technology a little bit more, and then gravitated towards at one point running a BI practice, where I got a good taste for the sales process. That’s where I started thinking I could do this for myself.

    I made that decision to go out on my own. Again, my brother is my business partner. So it’s a nice comforting factor to have him as a backing. Somewhere along the line early on we got into recruitment and it became my thing. That’s where we are at.

    Q: What does BI stand for?

    A: BI is business intelligence. Back in the day it was a little bit different than it is now, but obviously providing that basis to get reporting and analytics to business, KPIs, metrics, that sort of thing.

    Q: How did you get into that? Is it just looking for a job or you were interested in doing that?

    A: When I got my master’s degree, there was a concentration in the data space. Building data warehouses, which were fundamental towards this type of reporting. I had a lot of I guess educational training when I got out, I didn’t have the experience to do that so I became a software engineer.

    I did see a little bit of an opportunity to start helping in those areas of the company I was working for. My manager was really fantastic, a South African guy. And he gave me a crack at touching that side. It just resonated more and I just gravitated towards it.

    Q: What inspired you to go into the kind of people side of the work?

    A: Initially Elevano started as a business intelligence consulting firm. That was my expertise, and that’s what we set off to do. Along the way we had a customer who basically said, “Well, all right. The project is done. We just need someone to help us with this.” We knew very little about recruitment honestly. I mean, I was recruited extensively all throughout my career. I knew it from that perspective. I’d never actually done it.

    We were a small business at that point, and we said, “Sure, why not? We could help you. We’ll figure it out obviously.” We kind of said yes, and that committed us towards wanting to succeed. If we said yes we knew we were gonna be all in to ensure as much quality and we’d figure out what we had to to deliver essentially.

    Q: How did you approach recruiting people?

    A: Basically I approached it as I was an internal hiring manager. How I had to gravitate towards recruitment was, “Okay. I’m going to hire this person for me. For my team, for the BI consulting, What would I be looking for? How would I actually go about finding this person to expand my own team?” If I’m comfortable enough that he or she is a good fit for my team, then I feel comfortable sending that candidate to the client to interview.

    We just took ownership based on if it’s a good hire for us, especially knowing the data space. That’s kind of how we operated initially. That’s actually transcended the business. Part of our fabric is, we really take ownership of the roles in terms of trying to put ourselves in a hiring manager’s position a lot of times.

    Q: What exactly is Elevano?

    A: We are a recruitment agency. We don’t operate much like most agencies I suppose. There are some commonalities, there are some differences. I’m an engineer who comes from the perspective of, I know what I liked from being recruited and I know what I didn’t like.

    We just set about going, how would we want recruiting done? We approached it from the standpoint of that. And then obviously coming from a consulting background, we really liked to dig in and understand. In essence that’s part of who we are, and that’s kind of into the training that we provide people when we bring them onboard, is to help them understand those gaps, and the mindset that we expect here to resonate with, being true to our own history.

    Q: Your route for getting people onboard, getting candidates, and then getting those candidates in front of recruiters. What is the process in terms of how much technology is involved with that?

    A:  I like leveraging technology. We are not a platform. We had thought about, we actually had thought about many times, converting the service to platform. We might still do that down the road. Part of that is being an engineer, being somebody who is good at dissecting problems and try to reverse engineer solutions. I do see the gap pretty soundly. I have used my engineering background to go find tools and technologies, and process tweaks that leverage that.

    My goal is to get my hands on any tool that’s out there before another recruiting company can think about it, see it, because obviously I’m digging into a lot of startups and technologies that are emerging, that are still risky but I can evaluate because of my background. That does give us an advantage. I do believe that’s a distinct advantage.

    Q: How did you work on getting “social proof” for your business?

    A: We’ve made a big push to ask our candidates, “If we’ve done a good job, write reviews.” In four months I think we amassed close to a hundred reviews written for us. Not all of those reviews are placements. Some of those are people that were so happy in the way that we approached them and our unique philosophies of recruitment, that they were willing to write a couple of nice words about us.

    We focused on Google, Facebook, Trustpilot, but I’d say the majority is around Google. The reason we centered on Google is you have to have a user profile, it ties back to a person. For me, the social proof and transparency is of imminent importance to establish that good practices can be done. Again, what I really like about our candidates is, we sometimes have one meaningful conversation, and that person is willing to write us a review.

    Q: How would you convince someone that they should be coming with you rather than go to some platform, LinkedIn, Indeed or somewhere else?

    A: That’s where our strategy has shifted. We’ve spent a lot of time in the past trying to convince people. I’ve done a lot of reading in this area and I realized one thing, most people don’t like to be convinced of anything. That actually goes counterculture to actually getting people to agree with you. That’s why we’ve now fully are vested and centered on social proof, so the word of mouth and others.

    Our view is, instead of trying to go out and try to convince people on an individual basis, we wanna have the social proof speak for our quality of work. A place with five out of five with 1,000 reviews, you are like, “Okay, why wouldn’t I go to that place? As long as it’s authentic and trusted reviews. Why wouldn’t you do that?”

    Q: How do you see the future for recruitment, and how do you see the future for you as an organization?

    A: I maintain that recruiting is just a marketing activity as it would be in any sales organization. You need lead generation, candidate generation. I think marketing and branding will ultimately define people who can help generate passive inward burn applications versus you constantly going out and doing the solicitation. I actually think at some point that most HR, internal HR teams, will actually be made up of mostly content and marketing people. There’ll be fewer resources needed just to handle the inbound and outreach and nurturing of candidate pools. I think a lot of that will shift because the content, and the platforms will kill off the transactional need for some of the basic recruitment activities.

    I view whatever we’ve done, whatever we’ve figured out as pretty valuable, because I don’t hear many other agencies replicating what we’ve done. I actually think we will probably spin off a second company that’s an actual marketing company that helps recruitment companies, whether internal or external, do what we’ve done.

    I think my recruitment company will continue, it will be a strong brand, and I think we are gonna take our knowhow and help actual brands get to the numbers we’ve gotten. I think there are so many different techniques that aren’t even remotely being used. I think there is gonna be a big convergence, and I think the platforms, AI will come for a lot of the recruitment industry and eliminate some of that transactional.

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