Why use a Recruiter vs Procurement Specialist vs Staffing Agency for your hiring needs?
Ever wonder how massive software projects get done swiftly? Well, the secret is out, many software start-ups are using professional contractors to greatly enhance their company’s flexibility and competitiveness.
Technical contractors can be a great choice!
So here’s a short guide on effectively utilizing technical resources throughout your business:
Basically, you have a lot of work piling up or got new targets for your products and you need additional resources. You just care about how the work is going to get done and what will be the costs for it. There are a couple of ways to go about to fulfill requirements in a IT product based teams. You can either hire a recruiter, use a staffing agency or hire a procurement specialist for the same. Let’s discuss them in detail. Managers themselves cannot manage the product and find profiles at the same time. I must have help to find and fulfill positions.
Hiring a Recruiter to fulfill roles at your company:
Recruiter can work on 3-5 requirements a day. First, he will check his database in excel or a CRM like MS CRM used to store consultants to check if any candidate is available that matches the requirement. If not, he will use one of the subscriptions available to his disposal to source new candidate profiles like LinkedIn, Dice.com, Monster.com, Indeed.com, etc. They can get 3-5 matching profiles a day for easy requirements with old technologies and lenient criteria like Business Analyst, Testers, .Net Developers, Java Developers etc. He can probably get 1-2 profiles a day for difficult requirements with more recent technologies. He will send it to the hiring manager to review and set up interviews. There are a few things can go wrong like background check failed or consultant isn’t available to join, etc. He can fulfill at least 3-5 positions a month depending how easy or hard requirements are.
Recruiters can also use staffing companies to help fulfill requirements faster. They can easily get 8-10 profiles a day and fulfill 10-12 positions a month. But that involves additional costs, more on that later. With help from staffing companies’ recruiter can manage at least 10 requirements at any point of time.
Costs:
According to Glassdoor, A recruiter’s salary can be anywhere north of 70K per annum. There are a few criteria to consider for salary are benefits, onsite or remote or hybrid, etc.
Using a Staffing Company to fulfill roles at your company:
Staffing company can work on fulfilling requirements for you just like a recruiter or even better. They have more firepower to fulfill the requirements. They can work on permanent or contract requirements. You will generally have 1 point of contact with a staffing company usually called an account manager or sales representative for the hiring needs.
Let me tell you a little bit why staffing company has more firepower to fulfill your requirements. Our team of 10 recruiters reviews the requirement as soon as our account manager shares the requirement. Any recruiter can submit the profile from his 500-1000 active consultant database. 2-3 recruiters will go on job boards and use all subscriptions and network to source the profiles until at least 3-5 matching profiles aren’t submitted for the roles. These recruiters are continuously searching for profiles on other client requirements or even if there are no requirements. Because their targets are submissions and sourcing focused.
You can get at least 8-10 profiles within a couple of hours for easy requirements and at least 3-5 profiles on more difficult requirements in a day since you get a team of recruiters’ vs 1 recruiter.
Costs:
Companies charge at least 10% of annual salary for permanent placements and 20% or more margin for contractors for per hour. Companies have charged up to 40% margins for consultant in past but that’s the thing of the past. To avoid that situation, qualified candidate can send an email confirming the rate to you and CC staffing company at the time of submission for rate transparency.
Hiring a procurement specialist in IT to fulfill requirements:
Procurement specialist keeps a track of open requirements, maintains list of approved staffing companies and keeps an eye on onboarding of the selected candidates.
Basically, when you have 50 or more requirements in IT that needs to be fulfilled at any point of time. You need to have procurement specialist to manage list of open requirements and list of approved companies who your company has signed a contract to be supplier of consultants.
Costs:
Procurement specialist cost north of 66K per annum as per Glassdoor.
Recruiter can also perform role of recruiter and procurement specialist at times but depends how much time he has. Ideally, hire a recruiter if you need to fulfill 3-5 requirements, use 1-3 staffing companies if you have up to 20 requirements and use procurement specialist to fulfill up to 50 requirements on an average.
Using RapidHire Staffing to bring on your next loved technical resource could be what your team needs. Fill an upcoming project role with a full-time or contract candidate today!