Dec 6, 2024 | IT, Tips
We are in the middle of a long and sustained talent crisis. Candidate availability is decreasing by the day, and job vacancies continue to rise. Albeit at a slightly slower rate over the last few months. But the success of your business depends on your team. The people you hire have a direct impact on your success. So, when it comes to your next vacancy, you may be asking which is best for you – recruitment agency vs direct hiring.
We’ve asked our expert consultants to share their insight on the pros and cons of both to help you make that all important decision.
Agency vs Direct
We’ve written at length about the benefits of working with a specialised recruitment agency, but let’s compare some key areas when it comes to recruitment agency vs direct hiring.
Writing adverts
This may sound like a simple process, but don’t be fooled. Yes, it’s true that we can all write an advert stating the responsibilities and requirements. However, in the current market, that is not enough! Candidates are less likely to apply for a job with a list of demands. They want the story, the feeling, a sense of what you stand for. They want the benefits, the future opportunities, and a sense of being part of something important in the world.
If you don’t have experience of this, you are likely to find that your advert will be a bit of a ‘damp squid’ and won’t attract the people you need to make your business a continued success. Agencies are writing adverts day in, day out. They know what it takes to get the best response.
Access to candidates
A recruitment agency will have access to many more candidates than you will if you recruit direct. Not only do they have a large database of experienced candidates, but they are also able to advertise in lots of different ways. This means that you don’t just get the best people who are currently on the market. A recruiter will also headhunt suitable candidates for you using a combination of technology and their personal network. This means that your shortlist should be the very best candidates for the job.
Direct hiring tends to be focused on adverts, website pages and the odd social media post. The reach is not as great as that of a recruiter. With direct hiring, you are unlikely to have the tools you need to get your advert out as far as it needs to go. Lots of companies use their own employees to recommend candidates. Whilst this is great in some instances, it can have an impact on your diversity. Something to bear in mind with any employee referral scheme.
Sifting through CV’s – Recruitment Agency vs Direct Hiring
Depending on how much time you have, it could be a benefit for you to read through all the applications you receive if you do decide direct hiring is for you. The advantages are that you see not just shortlisted candidates, but every single response. This will give you a real insight into the market (if your job advert is great!) and may give you insight on what you need to change to attract the best.
You’ve also got to have the technical knowledge when it comes to IT. You may be looking for experience in a particular piece of tech. And unless you’re aware of other technologies where skills can easily transfer, you could be missing out on a great candidate!
Either way, be prepared to spend lots of time looking at unsuitable CVs as the pay-off for direct hiring. However, if you don’t have the extra time needed to go through the process, using a recruitment agency van be a valuable way of finding new talent for your business. Shortlisting is completed on your behalf, and you only have to choose who to interview from a shortlist of CVs.
Employer branding
You’ve probably heard more and more people start to talk about employer branding. It’s a vital part of the direct hiring process. When was the last time you reviewed yours? What does your Glassdoor say about you? How are your Google reviews? There are many things to consider when recruiting direct when it comes to how you are perceived in the market.
However, we know that there are some really great companies to work for our there who don’t have any employer brand at all. And if this is you then using a recruitment agency is the best idea. Recruitment consultants are highly skilled at attracting candidates to opportunities. They sell the opportunity first and the company a very close second. This gives the added benefit that any questions candidates have about your values, culture, and more, can be answered directly. So, whether you have a strong employer brand or not, you’ll still get the best candidates using a recruitment agency.
The same can be said for candidate experience too. If you already have a robust recruitment communication process, great, direct hiring could be for you. But remember that candidates expect a response within 24 hours of their application now. They expect to be kept up to date at every stage in the process. Do you have the time and organisation to do that effectively?
Cost
There’s a general misconception in the market that using recruitment agencies can be costly. But this is usually when it’s looked at in isolation and not compared to direct hiring. If you wanted to do the same work as a recruiter does, it could end up costing you considerably more. And this cost increases if you’re not regularly recruiting. Recruitment agencies spend hundreds of thousands of pounds behind the scenes to make sure that they are providing the best service and the best candidates.
You’d be amazed how much it costs to just advertise a job on one job board, let along over 30! Access to CV databases is also at a great cost, and let’s not get started on the costs associated with LinkedIn! Then there’s the time spent searching out the best candidates. At Langley James, we allocate at least 3 full days just to shortlist candidates for you. And in the current market, this can take longer too.
But there’s one huge benefit when it comes to cost. Recruitment agencies will not charge you a penny until they have been successful, regardless of the time spent on the role. This is something you can’t do with direct hiring. You take a financial risk every time you recruit direct – there are no guarantees of success.
Recruitment Agency Vs Direct Hiring – Summary
If you have lots of time on your hands, and an ‘easy to fill’ role then direct hiring will probably work for you. But, if you have a harder to fill role but you still want the very best candidates, without having to invest your own time, you need the help of a recruitment agency.
About Langley James
We have been helping companies to attract and retain the very best IT talent since 1999. But we don’t just simply find the best candidates. We can advise you on the current jobs market conditions. Share data on average IT salaries. Talk to you about the benefits that candidates are looking for. In fact, we do everything we can to help ensure that you get the very best people for your team. Get in touch with our team to find out how we can help you to recruit the best!
Dec 4, 2024 | IT
How to Create Employee Loyalty
Employees are becoming the competitive advantage for business in the modern world. Bad employees can cause a business to fail; mediocre employees can cause a business to break even. Good employees can make even a business soar.
The key of course is to hire right. At least half of the personnel problems I face with my clients today are caused by poor hiring policies. But just as important as hiring good employees is keeping good employees. Good employees often feel (and with good reasons) that their employers take them for granted. It takes focus, work and commitment to keep good employees. The idea is that the satisfied employee is less likely to search for greener pastures. The following are keys to keeping the best employees in your business:
Pay. Don’t believe the ‘experts’ when they tell you pay is not important. Pay might not be always the most important thing but it always ranks right at the top. Pay is only a non-issue when an employee is not dependent on the paycheck or has another source of income. A general rule is that you must offer a competitive salary/wage for that position. You can offer minimum wage to a journeyman level worker but you will not get journey level skill. If you are offering below market rate you will only attract the worst of the prospective employee pool.
Benefits are similar to pay. If other like businesses are paying certain benefits you will have to also. Health and dental insurance are benefits that better employees are demanding. But you can also offer additional benefits that will attract better employees. Life insurance, 401K plans, sick and holiday days will “sweeten the pot.” Some of these benefits may cost less than you think. The more astute businesses are also offering a ‘cafeteria style’ benefits plan — the employee can pick and choose which benefits are best for them.
Training. Good employees know they must be continually learning and improving their skills. They will search for a ‘home’ that not only encourages but provides regular training. Most businesses concentrate only on direct job-related training. Don’t forget non-business training such as English, foreign languages, computers, etc. Employees also have interests that are not job related. Improving some of these interests may also help improve job performance. Don’t forget to look carefully at cross training so they can learn to do other functions in the business which helps all concerned.
A Learning Environment provides a chance to learn on the job. This not only improves skills, knowledge and performance but keeps the employee’s interest level high. The employee is more eager to go to work if they feel they will learn something new and improve themselves. Hit an interest and loyalty will follow.
A Career Plan will help the employee set their long term goals. If the business can assist the employee in reaching those goals the employee will become more loyal. Most businesses do not help their employees in this way.
Evaluations and Reviews should be held on a regular basis and certainly no longer than three months apart. Problems and concerns can be addressed and progress toward goals monitored. The idea in these reviews is not to build a case to force the employee to improve or to build a case so they can legally be fired. The idea is to focus on the individual as a person and how they fit in the business. Reviews should be used as a way to keep good employees and not weed out bad ones.
Regular Business Meetings are an excellent way to get employee input, make improvements and address concerns before they become problems. Good employees feel they must have input in the workplace. Meetings should be held at least once a month but I advise my clients to have them weekly.
Recognise Good Work with financial and non-financial recognition. Employees often feel management only addresses them when there are problems. Good employees expect to be told when they do good work.
Good Working Conditions are a must. Good employees expect their employer to be making constant improvements so the workplace is not only safe but pleasant.
Have Fun. Good, loyal employees do not want boring, drudgery-filled work. There are many ways employers can make work fun and many of these techniques cost little or nothing. This is not the same kind of fun one has on holiday. But it does add excitement and keeps attitude high and motivation up. Many recent studies are pointing to a labor shortage and a battle for the best employees. One study recently found that only one out of four applicants is actually qualified to do the job. To attract top prospects the business must offer an attractive package. Top prospects must be marketed to in a similar way a sales prospect is marketed to.Those businesses that are lazy and too cheap will have to be satisfied with minimal employees. The long term prospects for these businesses will be poor. The successful business of the future will not only attract the best but will create a loyalty to keep the best. The indicators are suggesting these will be the only businesses that truly succeed.
Dec 4, 2024 | IT
Two simple ways to help overcome the challenges of the IT skills shortage
It is clear that CIO’s are operating in an extremely challenging environment and the role has never been more important than it is right now. IT has a crucial role to play in the UK’s continued growth and with the worst of the budget cuts now behind most IT departments, the focus again is on the IT skills shortage.
We are all so heavily reliant on technology and whilst 80% of IT spend is still focussed on “keeping the lights on” to simply sustain some form of business growth it has been reported by Deloitte that only 58% of budget allocation within IT is for BAU and 42% for change and growth. This is great news for those CIO’s with an appetite to drive this area but with IT project delays frequently reported in the news and IT request backlogs growing at a rate of 10 to 20% per year, having the right team on board to help develop and deliver new capabilities is one of the highest priorities for CIO’s.
The report also highlighted the IT priorities for the next 12-18 months:
– 82% support new business needs
– 56% drive digital strategy
– 56% reduce IT cost
– 53% consolidate infrastructure
– 52% maintain IT operations
– 52% strengthen risk and security
– 49% develop skills
– 44% restructure IT operating model
– 29% develop sourcing strategy
– 12% increase offshoring
The impact of the recession has seen businesses being slow to hire and train and as a result, we are not developing our technical skills at the same pace as pre-recession. Over half of CIO’s are experiencing difficulties when looking for business-centric IT professionals who not only have the necessary skill set but can also think strategically and communicate effectively. According to a recent survey by CBI, 39% of companies are now struggling to attract workers with advanced STEM (science, technology, engineering, maths) skills and 41% expect this issue to continue for the next 3 years. More surprisingly, it also reported that 66% of UK employers are not satisfied with basic IT skills in their workforce. On top of that, the European Commission predicts that the UK will need an additional 500,000 IT professionals by 2015! Recruiting and retaining IT superstars is no easy task for any CIO.
So what can you do about it?
In a reported conducted by City AM, the average salary for technology jobs in the London area rose by a staggering 26% in the last 12 months, with the average topping £48k (£38k nationally) and according to CareerBuilder/EMSI, a third of UK businesses plan to hire full-time employees in 2014, with software professional vacancies expecting to increase by 3.1% to 325,500 jobs and ITC Managers by 3.6% to 326,429 jobs. Are we set to see average salaries rising even further as companies try to attract the talent they need to prosper?
But those of you who read last week’s newsletter will know that attracting and retaining is not all about salary. Over 40% of respondents to the Deloitte survey are redesigning IT roles and structures and providing access to cutting edge IT projects to help make their role the more attractive career choice.
Here at Langley James, we are seeing companies offering profit share, performance related bonus, blue sky thinking time, time for training and development and even “free pizza Friday’s” in an attempt to attract the best of the best.
Personal development with tailored training and project opportunities are key to attracting and retaining the right talent so it’s quite surprising to hear that only 12% of CIO’s are offering opportunities on projects outside the IT function – are you missing an opportunity to attract and retain talent?
Here at Langley James, we are passionate about recruiting – that’s why we do it! We love getting to know you and getting to know our candidates resulting in the right person for the right role; something we have done over 3,000 times in the last 15 years. We are experts at attracting the best calibre of candidate for your role, not just skills wise, but that all important personality and business skills too.
To discuss your IT recruitment needs please call us on 0207 099 4839 or email us: langleyjames@langleyjames.com.
Dec 4, 2024 | IT
As we get closer to the end of the year, and 2025 is almost within sight, it’s a great time to think about building your team and recruiting. Commonly, January, the start of the New Year and its associated fresh starts and resolutions, are perceived to be busy times for recruiting new employees. For many organisations it is, but starting early and preparing yourself now for hiring could be much more efficient and rewarding.
Applications to jobs in November and December are 3% higher than the yearly average.
Now, we don’t know, but this could be affected by the high amount of Christmas positions that are up for grabs in the retail and delivery sectors in the lead up to Christmas, but it does show that the year’s latter months are not a quiet time for recruiters. Hiring from September to December allows your new members of staff to join the team before the chaotic start of the New Year, meaning they’ll already by integrated into the business and their role come January. Having a new employee start in the build up to Christmas is also a great opportunity for them to mix with the team at festive social events.
90% of job seekers are passive.
According to the Office of National Statistics 90% of job seekers are passive, so they’re likely to act on the right opportunity when it’s presented to them. Many organisations push their job ads out in January as a reaction to the busy and chaotic time of meetings, new objectives, goals and budgets. The space is more crowded and there are more options for the candidate. Advertising your job in the months leading up to Christmas and the end of the year mean your potential candidates are more likely to be attracted to your job with less competition. And with less competition you avoid having to pay higher salaries to secure the right candidate.
It takes 6 – 8 weeks to fill a vacancy.
Adequate planning and preparation for your new team members is very sensible. Advertising, interviewing and selection can take months, and that’s without considering notice periods. Getting the process completed or at least under way, will allow your new employee to really hit the ground running in January, already being familiar with your organisation and with induction and training out of the way.
Project management applications rise by an average of 30 responses over the festive period.
Account management, sales and marketing were the other 3 areas to see this rise in response, and trends like that are really useful in giving recruiters a backing and genuine reason to get on with recruiting at that time. Perhaps there’s some of 2024’s budget to use up, so recruiting a new project manager could be a great way to use it up and save on next year’s training and recruitment costs.
Over the 5 days for Christmas, 49% of applications were made on Christmas Eve, Christmas Day or Boxing Day.
Although these guys wouldn’t be starting until the New Year, this is an interesting stat, and shows that during the downtime of the Christmas break, people still have jobs on their minds. Fresh starts and New Years resolutions may be the driving factor, but by getting your vacancy prepared early you’ll be more likely to catch those proactive candidates looking for their next move before the New Year.
If you’d like to speak to one of our experienced Langley James consultants about hiring new employees, get in touch today.
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