The Use Of Recruitment Agencies By Small Companies

In many large organizations (and I’ve worked as a manager at a few) there is an attitude that they can’t always get staffing right and that is just to be accepted. Once I worked in a small company I soon realized that it is in fact essential to get it spot on.

Associated difficulties with recruitment in smaller companies include:

Lack of kudos - top quality candidates often perceive larger organizations to have greater status.

Less impressive packages – so unable to compete on the same level as their larger counterparts

No comprehensive structure within the company – so can’t clearly present possible career opportunities

Smaller advertising budget – so less able to reach the wide cross section bigger companies can target

Can be subject to rapid growth – and this is met by the need to hire new staff but often in a hurry

It’s not all gloomy news for small companies struggling to recruit internally. In fact you have these advantages:

A role within a small company is unlikely to be bogged down by as much red tape as one in a big business.

Being small allows for performance related awards to be made quickly as they’re not limited by annual pay reviews and the constraints of corporate policies.

Quick development is more likely within a small company and this means the creation of new career opportunities for its staff

A simpler recruitment process is often preferred by small businesses and this can appeal to candidates who are daunted by long, complex processes of larger organisations

Recruitment for small companies can be risky when the above points are combined and these risks may well be further enhanced if an expert in recruitment isn’t in charge of the process. Many small companies are set up by entrepreneurs. While they have cleverly used their skill and expertise in a specific area to set up their own business, chances are even though they will have little experience in recruitment they will indeed be the person hiring staff they will be responsible for recruitment.

Recruiting someone quickly and without any fuss is extremely tempting especially when a small company is rapidly developing and more staff is essential but it should really be avoided as this is when mistakes are made. A small company can’t afford to get it wrong and find itself entering the mire of employment law. Recruitment can’t be rushed. Small companies should set aside enough of a budget to target the type and quality of candidate they need and have in place a recruitment system that consists of more than one stage.

Many small companies may consider using a recruitment agency too costly but if they have no experience in recruitment they will almost certainly be better off doing so in the long run.

By: Jac Bult

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John Bult runs internet job sites for recruitment agencies in the UK