The Working of a Recruitment Firm


The work of a recruitment firm or placement consultants is to offer staffing solutions to corporate and businesses by matching the work profile with a suitable candidate. A mismatched placement causes financial losses on both sides. In this article, we will look into how a recruitment firm actually works.

How does a Recruitment Firm Work?

As the intermediary between the employer and prospective employees, the work of placement consultants entails sourcing the best talent for a specific work profile.

There are three major steps in the working of a regular recruitment firm.

  • Receiving Work Profile

The recruitment firm receives a detailed job description from the corporate client. The work profile brief contains details about the ideal candidate’s educational qualification/s, experience, skills, technical knowledge, yearly package and other roles and responsibilities.

  • Sourcing Suitable Candidates

The second step is about sourcing suitable candidates who meet the job requirements of the client. This is either done by assessing their existing database of candidates or advertising for the opportunity on popular job search websites. As the new resumes pour in, they are checked, verified and shortlisted. Sometimes a short telephonic interview speeds up the short listing process.

The whole process may take few days to few weeks. At the end, the placement consultants have a list of shortlisted candidates who are called for the next major step – interview.

  • Interviews and Finalizing

Conducting interviews is a time consuming process.

Here, it is worth to note that the interviews of shortlisted candidates are either conducted directly at the employer end or conducted by the placement consultants and a handful of potential candidates are forwarded to the employer for direct interaction.

Again, there could be a variation here. Ideally, there are three interview rounds to clear and the variation could be that first and second rounds are conducted by the recruitment firm and the last round takes place directly at the employer’s office. The recruitment firm and the corporate employer decide the terms in advance.

Depending on the number of openings, the candidates are finalized and the recruitment process closed. The recruitment firm receives its consultancy fees.

Temporary and Permanent Employment

The nature of employment, either temporary or permanent, also defines the role of placement consultants.

Temporary employees or contractual workers are mostly under the payroll of the recruitment firm. Their salaries are credited by the employer client to the recruitment firm and it is then disbursed to the temporary employees. These employments are limited by time and ends unless the contract is renewed.

However, permanent employees are always under the direct payroll of the parent employer.

When another requirement comes in, the whole process is repeated and this is how the recruitment firms work. Using the services of a recruitment firm is beneficial on many levels. They bring in industry-related experience and assist in sourcing the best available talent across a massive pool of applicants. It reduces CTC for the employer and reduces attrition rate.

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