Employment agencies will go the way of the dinosaurs if they don’t provide a different experience for their candidates.
Under the noses of traditional employment agencies, a new generation of start-up companies is emerging. These companies, powered by innovative technology, are aiming to widely distance themselves from the archaic term, "employment agency," despite sharing the same essential goal – connecting potential candidates to employers.
Under the noses of traditional employment agencies, a new generation of start-up companies is emerging. These companies, powered by innovative technology, are aiming to widely distance themselves from the archaic term, “employment agency,” despite sharing the same essential goal – connecting potential candidates to employers.
Three months ago, traditional employment agencies that have not yet adapted to the new realities of 21st-century technology faced their first warning sign when the Adecco Group, one of the largest employment agencies in the world, purchased the digital recruiting start-up Vettery for over one hundred million dollars.
The Future of Traditional Employment Agencies
Ten years ago, we called a taxi station to order a ride, went to the bank to deposit a cheque and needed a computer to share our photos.
But while these methods have become obsolete with the advent of the smartphone, communication with employment agencies has largely remained unchanged. The handling and communication between the recruiters and candidates are generally done in a manual and Sisyphean manner, including long emails and tedious phone calls at inconvenient times for the candidate.
This form of “industrial” work does not help the employment agencies earn the trust of the candidates and results in low retention and memorability of the candidates. The attempts made by employment agencies to improve their service quality and to strengthen their connection with the candidates is not sufficient – and usually results in spamming the candidates with irrelevant proposals.
But while traditional employment agencies are operating in the past, a change is taking place under the surface of the recruitment industry that is no short of an earthquake. In recent years, a young and fresh generation of start-ups is emerging that are using advanced artificial intelligence and are placing an emphasis on the candidate’s experience and 24/7 availability.
So What’s New in the Employment Agency Market?
New start-ups, including HIRED, GLOAT, and WOO, are using smart technology to quickly register the details of the jobs and candidates, automatically match between candidates and jobs, and continuously learn about the candidates’ preferences. These and other tasks are currently being done manually by traditional employment agencies and require a great deal of time and resources.
Technological tools reduce the resources invested in every candidate and therefore enable start-ups to simultaneously handle a much larger quantity of candidates. This also includes candidates who are not actively searching for jobs and are interested in maintaining anonymity.
The main advantage of using technology is the quick response – once a position is advertised, it is sent almost immediately to all the relevant candidates who can then quickly respond at their convenience using an easy-to-use interface.
Has the Countdown to the End of Traditional Employment Agencies Begun?
Despite the many advantages of new start-ups, they suffer from a number of significant disadvantages that are preventing them, for now, from dominating the recruitment market:
- The human relationship in the recruitment process carries significant weight.
The recruitment process does not end at the stage of matching the position to the candidate. Recruitment consultants also function as salespeople who expedite the process and create a bridge between the candidates and the client-side recruiters.
- The supply of candidates and clients.
Employment agencies are essentially a “marketplace” of candidates and positions, and when the “stock” of candidates and positions are larger, the chances of successful matching increases. These already established databases give employment agencies a significant advantage (for now).
- The knowledge of employment agencies should not be underestimated.
Over the years, employment agency professionals have acquired a vast amount of knowledge in their field. New companies may understand technology, but have not yet learned what the experienced companies have managed to forget.
To Be, or Not to Be, That Is the Question
Alain Dehaze, The CEO of the Addeco Group, emphasized that “Digital innovations have the potential to transform the recruitment industry and the Adecco Group is taking the lead.”
Traditional employment agencies are facing a critical point in which they must ask themselves, “Where are we going?” Implementing innovative technology can streamline work operations, keep them in the game with new start-ups, elevate their knowledge and experience to new heights, and significantly improve the experience of their candidates.
With Quali.fit, employment agencies can provide their candidates with the ideal candidate experience. Every candidate will benefit from personalized positions, complete control of his/her preferences, progress monitoring, and especially 24/7 availability.