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Hiring staff – agencies & newspapers

Last updated: 05 April 2022

Hiring staff – agencies & newspapers

Reliable trustworthy staff can be hard to come by but do you trust your own instincts or those of the professionals?

There are many things to consider when deciding whether to advertise for staff off your own back, or employ the services of an agency.

The plus side with an agency is that they take the onus off you when it comes to vetting suitable candidates – a time consuming exercise for an individual with other responsibilities – as they will already have a wide selection of people on their books. The downside is that prospective employees do not necessarily opt to apply to agencies if they are looking for a specific position so you are relying on what agencies have available, not always the open market.

Another big factor to think about if you’re a small business is cost. Agencies earn commission from a placement, usually based on a percentage of the hired applicant’s first year salary. This percentage would be variable depending on agency, experience of the candidate and industry sector. It is always therefore advisable to ensure that all angles have been covered before you decide to work with an agency.

The good thing is that, by law, employment agencies must inform you of their current terms of business. This includes everything from what the course of action would be if an employee turned out to be unsatisfactory (i.e. would there be any cost to you?), a scale of their fees and the circumstances in which rebates are payable. Make sure you request a full explanation including all of these factors.

A cheaper alternative, and one that gives you full autonomy, is that of advertising yourself. Placing an advert either in local or national press is cheaper and it means that you are likely to get specific prospective employees applying.

A reasonable sized advert placed in a local newspaper can cost anything from £345 upwards, with a full page being anywhere in the region of £3,726. National press is significantly higher. It is also important to realise that agencies charge commission on ads so newspapers tend to give them a percentage of advert cost. This means that agencies will always go for the highest price possible to gain the most commission. If you book direct, you’re likely to get a better price because an agency will never push for a discount.

It can be a time-consuming exercise to sift through lots of CVs and you face the issue of receiving untruthful references and ‘tweaked’ qualifications. However, on the upside you retain the ability to rely on your own instinct. With an agency you are relieved of this pressure as they must check workers possess any necessary qualifications and should also obtain enough information to show a worker is suitable for the job. Incorrect referrals could cost them dearly.

If you do decide to employ directly be sure to include a probationary period in a contract, which allows employer or employee to end employment. However, if an employee behaves in an unsatisfactory manner, legislation gives you the right to terminate the contract without notice if the conduct of the employee justifies it.

So, if you trust your own intuition and you’re trying to fill a position within a specialised field or you need to keep costs down, then it might be best to go it alone. But, if you cannot afford the time to sift through details or are employing within a popular sector and you have the money to let someone else do the work, an agency just might be the answer.

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