Recruitment Agencies: These firms act as intermediaries that handle the heavy lifting of the process, such as writing job descriptions, advertising, and shortlisting. The business makes the final hire and employs the individual directly.
Employment Agencies: Often used for short-term or 'temp' needs, these agencies maintain a database of workers. Crucially, the agency remains the employer and pays the worker, while the business pays a fee to the agency.
Strategic Value: Agencies provide expert market knowledge and save management time, which is particularly beneficial for businesses without dedicated HR departments.
Choosing between internal and external methods requires balancing cost, speed, and the need for innovation.
| Feature | Internal Recruitment | External Recruitment |
|---|---|---|
| Cost | Low (no external ads) | High (advertising/agency fees) |
| Speed | Fast (no induction needed) | Slower (full process + notice periods) |
| Innovation | Low (existing culture) | High (new ideas and skills) |
| Morale | High (promotion paths) | Mixed (may cause resentment) |
Evaluate, Don't Just List: When asked about recruitment, always weigh the pros and cons. For example, mention that while internal recruitment is cheaper, it creates a 'ripple effect' where the candidate's old job must now be filled.
Context Matters: A small local shop has different recruitment needs than a multinational corporation. Tailor your answer to the size and nature of the business described in the case study.
Check the Agency Type: Be precise when discussing agencies. Using the term 'employment agency' when you mean 'recruitment agency' can lead to lost marks because the legal employment relationship is different.
Productivity Impact: Remember that external recruits often cause a temporary dip in productivity due to the time required for induction and training.