Not all IT staffing agencies are created alike.
And in other news, the world is round.
IT headhunters. IT recruiters. IT staffing agencies. They (well, we) go by different names and seem to be everywhere in the tech field.
According to the American Staffing Association, close to 30,000 staffing and recruiting companies operate in the United States. Information technology employees account for 11% of the overall staffing market, so we can estimate the number of technology staffing companies to be in the ~3,000 range.
There are thousands of staffing companies, each with its own sales reps, recruiting team, and, of course, the all-important differentiating statement: “I swear we’re nothing like the other 2,999 staffing firms out there!”
If that number seems surprisingly large, consider this: There are more than thirty million independent businesses in the United States. That’s not a typo. 33,000,000+ businesses of every conceivable size, industry, vertical, and culture – all with their own unique way of doing things.
And then there’s you: The HR professional or hiring manager who wants to recruit and hire the best available talent efficiently and economically.
Considering the limitless hiring scenarios that exist when combining millions of companies with thousands of IT staffing agencies to support them, it’s impossible to cover all the variables that go into selecting the best match. But what if we could somehow narrow the decision-making criteria to the areas that matter most? I think we can, and it’s not as daunting as you might think.
First, Do You Actually Need Staffing Help?
Before figuring out how to separate one staffing firm from another (thousands of others), the first thing to figure out is IF you need one in the first place. Ask yourself the following questions:
- Do I have the necessary time to spend sourcing and screening candidates to meet my staffing objectives?
- Do I have the tools and resources that will allow me to locate prospective candidates promptly?
- Do I possess the knowledge to assess the technical skills required for the role?
- Do I have the headcount and budget in place to support this position indefinitely in the form of a direct employee on my payroll?
- Can I do all of the above for every position, every time?
If you can answer ‘yes’ to each of these questions, you likely don’t need an IT staffing company. You can stop reading here and get back to recruiting on your own.
If you answer ‘no’ to any of the above, you need the help that a staffing agency can provide, so keep scrolling!
Next, Are You Prepared to Work with an Agency?
Now that you’ve determined you need an outside professional, the next step is preparing to work with one. It’s important to acknowledge that when you engage an IT staffing expert to fill your open position(s), they will hit the ground running. Not only will you need to clearly articulate the purpose behind your need(s) along with all of the associated pertinent details, but you should also be ready to facilitate interviews, decision-making, and onboarding smoothly and efficiently.
Before calling out an opening to a staffing agency, make sure you have appropriately addressed these internal questions:
- Do I have the budget to use an agency?
- Do I have the required approval/ authorization to use a staffing partner?
- Are all relevant internal stakeholders in agreement that we need outside help?
- Are our needs clearly defined?
- What is the purpose behind the opening(s)
- What skills & experience are needed?
- Do we have a well-written job description?
- Duration of need (i.e., contract-based or direct/permanent)
- Do we have a defined hiring process?
- Who will participate in the interviews?
- What are our hiring criteria?
- Who will make the hiring decision?
- What is our timeline for interview completion/ start date for new hire(s)?
If you take nothing else away from this article, please remember this advice:
You shouldn’t engage a staffing firm until you’re prepared to do your part. The good ones won’t want to keep supporting you if you aren’t.
Considerations When Choosing the Best Staffing Agency For Your Technology Needs
While I fully believe that 4 Corner Resources is the best at what we do, I’m also quick to let prospective clients know that we aren’t right for everyone. With limitless variables, there can’t be a single best staffing agency, and for the same reason, there isn’t a best automobile. While you may think that the Chevy Camaro is the greatest and coolest car ever made, it simply can’t transport a family of six. Certainly, it wouldn’t be a good fit for anyone who needs to haul large items regularly. So, while it may very well be the best for a lot of people, that doesn’t mean it’s the best for everyone. Remember – the goal is to figure out which recruiting agency is best for your IT needs.
1. Do you want a partner or a vendor?
We’re all aware that the word “partner” is often used loosely these days when describing business relationships, but consider the more traditional usage, which denotes familiarity, trust, and commitment. While having a true partnership isn’t a required criterion for a successful staffing agency relationship, it’s important to know what you want from the company responsible for supporting your hiring needs.
There’s been an impossible-to-ignore evolution in the staffing industry over the past decade with the rise of third-party organizations that exist to manage the hiring process for end-user companies. They call themselves, among other things, Managed Service Providers (MSPs) and Recruitment Process Outsourcers (RPOs). They facilitate the staffing and hiring process through recruitment marketplace websites and software applications known as vendor management systems. They sell on the promise of driving down costs while increasing efficiency, and they claim to do so by operating between the staffing agencies and the end-user company that is hiring. In these scenarios, the staffing agencies contract with the MSP/RPO, which exists as a vendor in a commoditized process.
The truth is that developing and maintaining partnerships requires significant time and effort. Are you willing to spend that time, and do you see value in doing so, or does it make more sense to let a third party handle it for you?
Consider the following:
- Do you want or need to communicate your hiring needs via a live exchange with a recruiter (versus plain job descriptions being communicated via software or email)?
- Do you want or need to have a personal relationship with the company and recruiters who represent you in the marketplace?
- Do the agencies who recruit for your openings need to be intimately aware of your culture?
- Are your hiring needs unpredictable and/or inconsistent?
- Would you benefit from a staffing agency that is flexible, agile, and creative in supporting your evolving needs?
Affirmative answers to the questions above strongly indicate that you would be best served by having a direct relationship with one or more IT firms. With time and the development of mutual trust, partnerships will follow. If you answered “no,” an outsourced option may very well be right for you.
2. Do you want quality or quantity?
No organization wants to admit that it values quantity over quality in IT staffing. Nor should it, as this approach is far from ideal when it comes to interviewing and hiring the very employees who will make a difference in the organization’s success. Yet, many companies have chosen to do exactly that. IT staffing agencies, in particular, are aware of this, and more than a few have developed business models to support the increasing commoditization of the staffing process when resume volume is rewarded more than accuracy and diligence.
So, how can you determine where you fall on the quality vs quantity scale? While it’s impossible to universally define, HR recruiters and hiring managers need to be aware that it comes down to simple math for the staffing companies. Here are two examples:
Example 1: Acme Corporation has an IT opening which they send to 20 different staffing agencies. They receive 40 resumes before scheduling a single interview.
Example 2: Acme Corporation has an IT opening, which they send to 2 staffing agencies. They receive 4 resumes in total, and schedule interviews as the resumes come in.
In Example 1, the odds of success are very low for even the best recruiting companies out there, while Example 2 allows for a high chance of success. In both cases, the recruiters are well aware of the odds and will act accordingly. The opportunity in Example 1 doesn’t justify the time, resources, effort, and expense that Example 2 warrants. In other words, something needs to give, and it will. While attractive on paper to some (40 resumes versus 4!), staffing companies will calculate the odds and act accordingly.
If you operate similarly to Example 1, you’re placing more value on quantity than you are on quality – consciously or not. It’s very difficult, if not impossible, for an agency to be proficient at quality- and quantity-based recruiting. As such, you don’t want to choose one when you really need the other.
How can you tell the difference? If quality is your priority, the best staffing agency for your business will have traits that include:
- A high resume submission-to-interview ratio
- A high interview-to-hire ratio
- An onshore, in-house team of professional recruiters
- A thorough and documented candidate screening process (that they are willing to show you)
- A consistent end-to-end recruiting process (that they are willing to show you)
3. Do they have the experience and resources you require?
When comparing the types of positions and roles in the workplace, technology jobs are among the most complex. Making staffing these positions even more difficult is the extremely low (if not nonexistent) unemployment rate in the IT space. Considering this, you need a partner with the experience, knowledge, and resources that a generalist recruiting firm won’t be able to match. To help you narrow the field, here are some high-level qualifying questions that any IT staffing expert should be able to answer without hesitation:
- Number of years in business?
- Number of years staffing IT(specifically)?
- Types of positions placed?
- How many of each (annually)?
- Number of IT recruiters on staff available to support your openings?
- Number of IT candidate resumes in their ATS/ database?
4. Do they have a good reputation?
When it comes to sourcing, screening, and recruiting your company’s next software developer, project manager, or IT director, you should be very selective about who represents you in the market. Not surprisingly, a staffing agency’s reputation in terms of honesty, reliability, and accessibility greatly differs from candidates who must consider who they trust with their resume and professional future.
Fortunately, you don’t have to work hard to assess a recruiting agency’s reputation quickly. In short, just Google it! If you’re looking for a little more depth, here are some additional sites to use:
Insightful Questions to Ask Prospective Staffing Agencies
As you consider different firms, these questions will help you separate the true experts from the cookie-cutter hiring mills.
How do you attract top IT talent?
In a competitive tech market (which we’re currently in and will be for the foreseeable future), understanding how an agency attracts top talent is essential for assessing its effectiveness. This question will help you understand where they look for candidates, what kind of industry connections they have, and what sourcing tactics they use to turn those connections into applicants.
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What is your candidate screening process?
High-quality IT hires hinge on thorough screening. A good agency should have no problem explaining in detail how they decide which screening questions to ask and how they vet applicants’ skills, especially highly technical ones. Their answer will give you insight into how much effort the agency places in selecting candidates that align with your requirements, which promotes retention and reduces turnover.
What experience do you have hiring for the roles we need to fill?
An agency with industry and role-specific expertise will more likely understand the challenges and nuances associated with the positions you need to fill. This question will reveal their prior experience (or lack thereof) recruiting for similar job titles. They should also be able to provide references who can speak to their positive experience with the firm.
What’s your success rate for placing candidates in our industry?
A high success rate means a proven track record of reliability and effectiveness. In addition to asking about successful placements, find out what percent of temporary hires are converted into permanent ones and how long the average employee stays with a client once hired.
How long does it typically take you to fill a position after a request has been made?
Speed is essential in filling high-value roles, but it’s also not the be-all, end-all factor. A strong agency shouldn’t sacrifice quality in the name of moving fast. Look for a staffing partner that prioritizes efficiency and whose speed aligns with your hiring timeline. If you often require high-volume or urgent staffing, talk about their capabilities in these areas.
How will we communicate with you, and how often will we receive updates?
You need to receive timely feedback and have your agency make any necessary adjustments to your search. It’s less about staying in touch at all times than it is about aligning your expectations. Some clients prefer to receive phone updates several times a week, while for others, a weekly email summary will suffice. Getting a picture of what your communication cadence will look like will ensure you have the appropriate visibility into the hiring process.
How do you handle unsuccessful placements or mismatched hires?
Even the best recruiters make mistakes, and the most appealing candidates can simply change their minds or turn out to be different from what they presented during the screening process. It’s not the most fun topic to discuss, but discussing what happens if a candidate doesn’t work out is necessary. Things like having a replacement policy or offering financial or service-based compensation for mishires demonstrate accountability for the agency.
Red Flags to Watch Out for in an IT Staffing Partner
Lack of price transparency
Be wary of agencies that don’t clearly explain how you’ll be charged. If they gloss over additional costs like background checks or onboarding, you could be charged unexpectedly.
Lack of relevant references
A reliable agency should have a solid list of satisfied clients and should be more than happy to connect you with them for a reference. Beware of website testimonials that sound too polished, as a marketing team may have drafted them.
Weak screening process
If the agency can’t explain how they vet candidates, run! Without a structured method for assessing skills and fit, you’ll be inundated with unqualified candidates and end up wasting more time than before.
Shifting points of contact
If you’re speaking with a different person each time you make contact during your selection process, imagine how it’s going to be once they’ve got your signature and your guaranteed business. While working with multiple people in an agency is fine, you should have a dedicated representative who serves as your main point of contact for updates, new requests, and any issues that arise.
Rigid contracts
If an agency is unwilling to adapt to your specific needs, it might be a sign they’re only concerned with making their jobs as easy as possible. It could indicate an excessive workload if they cannot make changes to accommodate your unique situation.
Lack of accountability
In order to prioritize performance, an agency should have a designated method for tracking progress and reporting results. If they don’t offer any metrics or analytics on their performance, you may have a hard time assessing ROI.
Are You Ready to Partner With a Staffing Agency?
As you can see, there are many questions to ask and answer when determining the best IT staffing agency for your business. While this article will hopefully provide valuable guidance, it is in no way a comprehensive list of all the potential variables and factors that determine the best fit.
Here at 4 Corner Resources, IT recruiting has been the heart of our business. We are equipped with many years of insight and expertise that will allow our headhunters to surpass your hiring needs and expectations. Our employer solutions range from direct hire placement to headhunting, contract staffing, contract-to-hire recruiting, and payrolling services.
If you still have questions, contact the professional headhunters at 4 Corner Resources. We would be happy to help find the answers you need.
