How Companies Can Evaluate New Staffing Providers

For every 100 positions that are outsourced the hard cost of agency utilization can run in excess of $1.4 Million.  Add the soft cost of agency attrition, which averages 20-25%, the total cost of agency utilization can exceed $2.2 Million.

Most organizations don’t do enough to scrutinize the competency of their vendors.  Outsourcing hiring needs to an ill-equipped staffing agency can be a fiscally disastrous option.

Diminished Capacity

If your internal recruiting/HR capacity has been scaled back due to market conditions, your vendors (new or existing) may be experiencing similar reductions as well.  Before you outsource your positions, you may want to re-evaluate your current vendors’ capacity to ascertain they can deliver. 

To read about how you can evaluate your current staffing providers capacity and methodologies, you can view my article at:  http://dongee.typepad.com/my_weblog/how-companies-should-measure-their-current-staffing-providers/

Evaluation Criteria

During the evaluation (or re-evaluation) process, it is imperative to understand how an agency administers their candidate screening methodology.  

What is the Vendors internal candidate screening and evaluation process?

Has the firm worked in your industry/domain before?

How many recruiters will be working on your positions?  What is their experience level?

Does the Vendor offer a specialization based on your needs?

Can the vendor provide references?

Lastly, what is the agencies recruiting personnel attrition?  If a vendor asserts to be authorities in the human capital business, however, their internal recruiting experiences significant turnover, question their business model and quality.

Vendor Performance & Accountability

Once it is determined that a position need to be outsourced, vendors should be e held accountable to maintain their status as an approved vendor.  

 

Don W. Gee

Talent Strategy Manager

Escendent

Dgee@Escendent.com