When should you really use a recruitment agency?

When should you really use a recruitment agency?

Article why using a recruitment agency.jpg 31.41 KB

As we enter Q4 2024, the industrial market in Southeast Asia is still sluggish. Manufacturing growth has slowed to 0.8% this quarter, down from 1.2% in the previous quarter. Source : Bangkok post. 

While the overall manufacturing sector has proven to be resilient by the past, companies in the region are reevaluating their talent acquisition strategies to better align with cost considerations. When sales budgets are not fully secured, we can anticipate the following trends in Q4 2024 to be carried over to 2025:

  • Conservative headcount creation
  • Prioritisation of vital positions and replacements only
  • Optimization of departments for higher productivity outputs

With this in mind, C-level executives and top HR professionals must consider how to optimise the hiring budget for recruitment agencies. 

Do you truly need an external sourcing provider? When exactly does your organisation require one? This article aims to address these questions.

WHEN SHOULD YOUR ORGANISATION USE A RECRUITMENT AGENCY 

The following conditions are gathered 

There is a dedicated Recruitment Budget:

It is essential for any organisation, whether an SME or an MNC, to maintain a dedicated recruitment budget with a clearly defined budget owner. Without it, recruitment decisions may be made on the fly, risking jeopardising profitability. By anticipating the need for replacements or new hires in the upcoming year, companies can ensure that they are prepared for the future.

ℹ️ HR Note on Unplanned Recruitment: In cases of unforecasted recruitment, we recommend challenging hiring managers to justify the need for the position. What is the ROI of the role, and how will it be financed? 

The recruitment budget should ideally be drawn from the hiring department rather than the HR budget, which may have already been allocated. The division manager should explain why the position is necessary, why it cannot be filled internally, and the expected ROI. We recommend implementing a requisition form to be completed by the hiring manager in such cases, and to coordinate the process with HR. 

It is a Tough-to-Fill Position:

For roles that are challenging to fill, a recruitment agency can provide valuable expertise and access to a broader network. It is important to note that “tough to fill” positions are not always limited to top management roles. For instance, service engineers in the packaging and food processing industries are in short supply, which may justify the need for external recruitment support. Conclusion : consider the talent shortage in your own industry for budgeting purpose. 

📣 Spot “tough to fill” positions in advance to avoid this :

What happens when a position is tough to fill
Below is a typical example of a situation encountered for “tough to fill” roles. Believe it or not, this scenario is quite recurring. 

It’s urgent, and the business is at risk


We know it, in an ideal world, everything is forecasted and all the scenarios are anticipated. In reality, last-minute resignations of unplanned positions can put the business at risk. This is especially true when a key position holder departs on short notice. If there is no bench strength or talent pool to draw from, we consider engaging a recruitment agency rather than jeopardising the entire organisation.

Recruitment capabilities are missing 


SMEs with a Single HR Manager:
In SMEs, HR managers are responsible for a wide range of functions, including learning and development, employee engagement, and payroll. The recruitment function might be outsourced for key positions. 

Group Affiliates without Global HR Support:
In organizations where there is no in-house HR function, it becomes essential to seek external expertise for recruitment. It is important to note that many teams are increasingly adopting matrix-based environments, where recruitment is managed regionally. This make the local team in need of fast support to fill critical roles. 

Stretched Internal Talent Acquisition Teams:
When the internal recruitment team is overwhelmed—whether due to a spike in turnover or a hiring spree—consider referring to the guidelines for unplanned recruitment mentioned earlier.

There is no HR Manager : In this case, there is a conscious choice to outsource recruitments to an external recruitment provider. 

HOW TO REDUCE THE RECRUITMENT AGENCY DEPENDENCY 

Perform Manpower planning 

A proper manpower planning will A Manpower planning must also take into account :

  • Risk of resignations 
  • Risk of retirements 
  • Risk of terminations 

Do not just forecast Headcount on excel sheets, get HR to meet with line managers involved to assess risk of leaving. You may budget hiring expenses according to risk of leaving for key positions, or tough to fill headcount to be created. 

Understand your industry shortage to focus external recruitment support 


There are some positions where : 

  • You can’t have a succession planning for everyone
  • There is a relatively high demand for these positions 
  • The positions are easier to train to operationality in case of replacement.  

However, you cannot beat the talent shortage in your industry. If you have not implemented a talent strategy in place, we recommend focusing external recruitment providers to high shortage positions, and develop a strategy to low and medium shortage positions.

Develop a talent pool 

Building a talent pool makes you resilient against market slowdown. Not only does it helps your company hire faster, but it also helps you save costs. 

In order to save costs hiring, your company must consider : 

Invite your internal employees to apply for open roles (internal recruitments) : Consider your internal employees before hunting elsewhere. Internal recruitment is the solution that helps you save the most costs! We recommend our HR users to invite internal employees to their open roles in priority in order to fill roles faster, improve employee engagement, and reduce costs. 

  • Enhance Employer branding : this is especially useful to be visible across your targeted audience and ensure you receive organic applications. You can consider investing in recruitment employer branding videos in “short format” to ensure you can scale your company branding across thousands of applicants. Click here to know more about employer branding. 
  • Pool candidates : Ensure your company gets a system to scan candidates from your competitors and overlapping industries. Huneety ATS helps you monitor candidates from your industry direct segment in order to feed your company's talent pool. Click here to create your company account. 

Invest in Employee retention 

In southeast Asia, increasing employee retention is especially challenging. Standard practices are involved. Here at the top 3 recommendations according to the latest engagement studies: 

🙂 Create a Positive Work Environment:

  • Foster a supportive workplace culture. Encourage open communication, recognize employee achievements, and provide a comfortable and engaging work environment.
  • Practice: Regularly solicit feedback from employees and act on it. Organise team-building activities and create spaces for relaxation and collaboration.

$ Offer Competitive Compensation and Benefits:

  • Ensure your compensation packages are competitive with industry standards. Offer a range of benefits that meet employees’ needs, such as health insurance, retirement plans, and flexible working options.
  • Practice: Conduct regular salary reviews and adjust compensation as needed. Consider non-monetary benefits like family support, professional development opportunities, and employee discounts.

🌱 Invest in Professional Development:

  • Idea: Provide opportunities for employees to learn new skills and advance their careers. This can include training programs, workshops, and support for further education.
  • Practice: Develop personalised career development plans for employees and offer mentorship or coaching. Encourage attendance at industry conferences and seminars.

About Huneety

Huneety is the leading talent matching platform in Thailand specialised in the industrial sector. Our vision is to provide companies affordable tools to recruit the best talents with : 

  • A.I Job board and talent matching platform : Get a talent pool, scan candidates from your targeted industry segments, and pre-shortlist them according to skills. 
  • Recruitment assistance for companies seeking to decrease their hiring costs. 

Do you want to know more about how to reduce the cost of hiring for your organisation? Click here to schedule a discussion with our team. 



Related articles (6)

Recruitment Tips: How to Hire Sales Engineers in the Food, Processing & Packaging industry
Recruitment Tips: How to Hire Sales Engineers in the Food, Processing & Packaging industry

Are you hiring Food, processing & Packaging industry sales engineer? This article guides you through how to find qualified sales engineers.

Learn more
How to choose a recruitment agency in Indonesia?
How to choose a recruitment agency in Indonesia?

Yes, there are a lot of recruitment providers in Indonesia. In this article, we explain how to choose the right recruitment agency in Indonesia.

Learn more
Plan your 2024-2025 HR Recruitment Budget with Huneety
Plan your 2024-2025 HR Recruitment Budget with Huneety

Are you planning your recruitmnent budget effectively for the year to come? Our mission to help organizations to do more, for less!

Learn more
Get started with goal setting
Get started with goal setting

Your success as a manager depends on goals you are setting up for your team. You must go beyond yearly objective settings and breakdown yearly goals.

Learn more
The science behind Huneety Behavior Assessments
The science behind Huneety Behavior Assessments

Huneety has further improved the Big-5 Assessment system to adapt to a wider variety of work behaviors and work cultures.

Learn more
Thailand 2030 : Turning vision into reality with a  qualified  workforce
Thailand 2030 : Turning vision into reality with a qualified workforce

Dive into the primary objectives of Thailand 2030, examining the talent challenges and Huneety solution to navigate Thailand talent shortage.

Learn more