What are Employment Agencies
These are agencies which act as mediator between prospective employees and companies. They help the companies in finding out candidates to match their requirements with the definite skills. Most of the times companies leave the job of find out right candidates for the right job to these privately owned employment agencies.
Usually companies give in writing the kind of candidate they need which is referred as job description to these employment agencies. This job description also has the other details like educational background, skill sets required, kind of experience they are looking at etc. Prospective candidates or unemployed people can also go to the employment agencies to register themselves in getting a job from them.
For such kind of services the employment agencies charge both the company and its prospective candidates certain fee based on certain terms and conditions. For helping the companies in getting candidates they maintain a huge database of candidates depending upon their skills and experience. Whenever the agency receives a requisition from the company for need of candidates, they search their database for candidates matching the skills requested by the company.
They do the initial screening of candidates to find out if they are interested before forwarding their resume to the company. Sometimes the company may tell these agencies that they would conduct the initial interview. In such cases the employment agencies provide the candidates who match the required skills with the venue and contact details of the person whom they should meet for the interview.
There are several advantages of employment agencies. It is a major source of cost saving for any organization. It also gives a firm an increased volume of candidates to choose from since they may contact more than one employment agency for recruiting candidates. They also are advantageous to employee’s in many ways like they also come to know about the vacancies that are not advertised, the employee has an option of multiple companies to apply for and they are also a kind of cost saving that is involved in sending their resumes to companies.
Apart from the advantages they also have their own disadvantages both for employees and employers. When it comes to employers they have to shell out large fees for example if an employee is hired the company many have to pay 10% of their CTC as commission to these employment agencies. Sometimes they may prove very costly if the employee quits within a short period. One more disadvantage is that lot of time is lost if they don’t find a suitable candidate.
The same implies for the employees as well, the commission paid by the employer is deducted from the salary of the employee. This is a great disadvantage for employees. These employment agencies focus more on the company needs rather than the candidate, since they work on direct commission basis with the employer.