The Cost and Benefit of Job Placement Services

headhunter in singapore

Employment placement agencies exist for good reasons as finding the right job is one of the most prominent challenges for any professional. By ‘right’, we mean employment that suits the applicant and are not those that simply source of wages.

Worldwide, recruitment agencies are popular options among job applicants regardless of reason. These recruitment agencies are varyingly referred to as “headhunters,” “search consultants,” or “sourcers” depending on how they work and are paid.  There are of course, internal or in-house corporate recruiters which are contractors of a company that source and recruit for full-time employee positions and are paid with regular salaries and benefits just like any unit or employee of the company.  Since they are relatively stable, have longer, even permanent tenures and do not rely on commissions for pay, they are also less aggressive and do not provide additional services for applicants.

On the other hand, external recruitment agencies in Singapore can be generally classified based on the type of job they target. Regular recruitment firms which find regular company positions. Temporary job placement or temporary staff recruitment agencies hire employees or candidates to fill temporary positions in a company or organization and are paid by the companies at hourly rate for the candidate it hires.

Generally too, hiring recruitment agencies are beneficial to both employer and potential employee. For companies, recruitment agencies reduce operational cost by out-sourcing basic functions like recruitment to external entities which in turn reduces need for office staff and cost of basic staff benefits. Since external agencies are aggressive, they also speed-up the filling up of manpower needs. For job seekers, recruitment agencies help establish good relationships with companies due to their track record and familiarity. Since most recruitment agencies work with various companies or industries, they have enormous network and provide job seekers extensive options and wider chances for employment since these firms have information on jobs that are not publicly announced. Professional temporary recruitment agencies in Singapore also have a through grasp of exact standards and consideration of the companies and therefore help companies find the right person and help applicants find the right job. Some Singapore recruitment agencies even offer services like resume and letter writing, professional interview tutorials and career path counseling which help job-seekers extend their potentials to get hired.

Of course, with the advantages come the disadvantages. There are also major drawbacks for both company and applicant. For companies, external recruitment agencies often preform selection on their own and therefore the company ends up with an applicant they do not intensively know. While this has not been a very significant problem especially for temporary staff recruitment agencies,  they do have effects when hiring regular or executive positions especially since placement agencies are not mandated or authorized introduce a potential employee to the culture of the company precisely because there agencies are external agencies. On the part of the job applicant, finding a job through an employment agency usually means a pay cut since a portion of the applicant’s monthly pay would go to into paying for the placement services of the recruitment agency. In Singapore a few recruitment agencies are paid by the employer but generally, particularly among temporary staff agencies, candidates pay their fees through a percentage of their pay for a specified amount of time.