The recruitment costs are very significant HR Cost and the pressure for the job candidates increases the costs the companies need to pay to recruitment and job agencies. The companies were not prepared to change their recruitment behavior and habits and right now, they just monitor the recruitment costs increasing.
The companies use the same recruitment approach for years and they do not analyze the recruitment sources and the trends in their own recruitment sources. As the recruitment costs do not jump in one single step, but they grow over a longer period of time, the real recruitment costs can stay hidden.
The recruitment agencies know the situation and they know, they are the only useful source of job candidates for many organizations. As they know about the lack of candidates, they can ask for higher provisions. It is an ideal situation for recruitment and job agencies as they do not need to increase their own service level for the clients, they just can increase the fees billed to their clients.
The client does not have to agree with the higher payment to the recruitment agency, but as there is a lack of job candidates on the job market, the recruitment agency can quickly decide to send the job candidate to the company with the best payment conditions agreed with the recruitment agency.
The only exception is the company with the high volume of vacancies, which is able to offset such a difference in the conditions agreed with the recruitment agency. Then the company can play with the high volume of the job positions.
It is not a mistake of the recruitment agencies to increase their fees; it is a mistake of the employees responsible for the recruitment process, as they need to make adjustment and they need to discover new recruitment channels in advance. The HR Recruiters need to make regular analyses of the recruitment sources to find the best working one.
