- May 9, 2019
- Posted by: Doug Bryson
- Categories: Recruiters, Tech Talent Blog
There’s a war raging as small and mid-sized firms are going up against big corporations in a search for top technology talent.
Employee initiated turnovers are high, unemployment is low, and the accelerating adoption of automation is creating intense demand for technical skills that don’t widely exist in today’s workforce, according to Deloitte’s 2019 Global Human Capital Trends report.
Small and mid-sized firms are particularly under the gun. Workers find the visibility, prominence and potentially higher salaries of big-name corporate America an alluring proposition.
It’s no wonder recruitment—particularly in the technology arena—is one of, if not the most, significant of challenges experienced at small and mid-sized firms. How to win this war for talent boils down to one of two very distinct options: Do It Yourself (DIY) or Partner With An Agency.
DIY: the cost of flying solo
Admittedly, having full control over the process that determines the candidates who initially come through your door makes a case for DIY. Plus, DIY saves money by eliminating the need for a potentially hefty placement fee.
But control actually comes with cost, maybe not in dollars but definitely in time. Weeding out resumes can be a drag on limited HR time and resources or take away from you concentrating on other tasks, for starters, your core business.
The pain of a bad hire
Even worse, your functional expertise is likely neither in hiring nor technology and its necessary skill sets. Put that up against the need to fill an open position quickly, and you could end up with a disastrous outcome. You thought a candidate had the right credentials and sterling references. That candidate flew through the interview process but on the job turns out to be a problem.
The financial costs can vary depending on the position for which the hire was made. A CareerBuilder study cited estimates above $7000 to $10,000 as the average cost of hiring the wrong individual for an entry or mid-level position. The cost of wrongfully hiring a manager is typically in excess of $40,000. The same survey found a price tag of $25,000 or higher by 41% of companies and $50,000 or higher by 25% of companies.
For a small company, a five-figure investment in the wrong person coupled with the cost of replacement unquestionably pressures company coffers.
Beyond dollars and cents, there’s the collateral damage of reduced productivity, missed deadlines and diminished colleague morale.
Partnering up with an agency
Working with an agency can help you eliminate some of the pitfalls of flying solo.
An agency can do all the legwork for you. Plus, an agency that specializes in technology recruiting can work from competency profiles to more readily identify and then match job requirements with a candidate’s expertise.
Agency interviewers know the ins-and-outs of technology’s forward movement and are skilled in asking the right questions to evaluate competency. They can weed out unqualified applicants and send only those who have the appropriate skill set to your company for an interview. Also, agency recruiters have typically placed many candidates with other employers and are thoroughly familiar with a candidate’s performance. They often know where and to whom they should direct their outreach, helping to maximize efficiency.
Beyond that, an agency manages the entire onboarding process. In the rare cases in which an applicant doesn’t work out, the agency handles offboarding and goes back to its talent pool to find an applicant more suited to the position. Because of its ample resource pool, the agency can likely replace the bad hire quickly.
A leg up from a trial run
When you work with an agency, you can hire a contract employee and over time change the worker’s status to permanent. This progression gives you the opportunity to test fit a new hire.
Agility is also an advantage. Because of continuous technology evolution, you may prefer to maintain an ongoing relationship with an agency and use a contract-based strategy to fill your next big project as your company grows to the next level.
In the long run, small to mid-size companies will likely find they are more apt to win the talent war by turning to an IT staffing and recruiting agency. Partnering with an agency will help you populate your business with quality workers at incredible time and cost savings.
Call us at 908.864.8081 or reach out to Peter.Garner@spearheadstaffing.com if you’re interested in bringing superior IT talent to your business. Our high-touch service, technical acumen, strategic value and Right Hire approach enable us to efficiently and effectively fulfill and exceed your IT talent needs and provide you with the highest quality in IT staffing and recruiting.