7 Fun Facts About Direct Hire Agencies

Working with direct hire agencies can sometimes feel like both a blessing and curse. While they help you find needle-in-the-haystack and company-critical hires faster than you could on their own, they are expensive and add yet another component to an already complicated hiring process.

With the right data, however, you can build a more strategic partnership with your agencies. Knowing things like when to work with them, how they operate, and what results to expect can help you stay on the same page and build a strong relationship.

In that spirit, here are 7 things you may not know about direct hire agencies:

Gen X (aged 36-50) is most likely to hear about a new job opportunity through an agency than by any other means. Tweet This!

Source: LinkedIn, Why and How People Find Jobs

Different generations go about their job search differently: While Gen X tends to use direct hire agencies, Baby Boomers (51+) are more likely to hear about new opportunities through referrals, and Gen Y is more likely to use job boards. If you’re looking for a mid-career candidate, a direct hire agency may be the best way to find them.

Direct hire agencies spend 39% of their time searching for candidates, and 16% of their time maintaining candidate relationships. Tweet This!

Source: BountyJobs data

Agencies spend more than half their time developing candidate relationships so they can submit the best possible talent to their clients. The remainder of the time is spent on the other side: 26% on business development and 15% on maintaining employer relationships.

61% of direct hire agencies say availability of quality talent is the biggest obstacle to recruiting. Tweet This!

Source: LinkedIn, US Staffing Trends

40% of employers report difficulty filling jobs, and are sending the most hard-to-fill positions to direct hire agencies. It’s no surprise that the availability of quality talent is seen as a bigger obstacle than the quality of offers (compensation, location, etc) and competition.

Direct hire agencies have a 20-30% interview rate. Tweet This!

Source: BountyJobs data

Organizations review an average of 42-62 applicants per job requisition, and interview only 9-14% of them (depending upon company size). Good direct hire agencies have a 20-30% interview rate, allowing employers to review half the resumes to hold the same number of interviews. However, agency candidates come pre-screened, so it’s not necessary to interview quite as many candidates to find a great hire.

Direct hire agencies can buy you 50-65% more time with your candidates. Tweet This!

Source: Expectations! Recruitment Services

Candidates are receiving multiple offers, so employers only have a short window to make an offer of their own before they lose their candidate to another organization. Direct hire agencies can extend that window by 50-65% by managing candidate expectations and keeping candidates engaged. Just make sure you’re keeping them up-to-date on next steps and timing so they can communicate effectively with their candidates.

The average direct hire agency fee is $22,000. Tweet This!

Source: BountyJobs, 2015 Direct Hire Agency Benchmarking Report

The average direct hire agency fee was $22,113 in 2014, 6.3% higher than the average fee in 2013 ($20,793). As a percentage, agency fees have remained around 21% of a candidate’s first year salary for the past two years, reflecting the strong offers companies are making to attract talent.

53% of contingency recruiters say that playing matchmaker is the best thing about their job. Tweet This!

Source: BountyJobs agency survey

The majority of agency recruiters genuinely love matching clients to their ideal candidate, and vise versa. After that, 20% said money was the best thing about being a recruiter, and 17% most enjoyed the thrill of the hunt.

What other fun facts have you seen about direct hire agencies?

2017-08-02T22:08:05+00:00 September 2nd, 2015|

About the Author:

Jen Dewar is a marketing consultant in the HR technology space with a focus on developing educational content for recruiters, corporate HR professionals, and staffing agency owners. She has spent the past 10 years working with a wide variety of companies — from corporate marketing for healthcare organizations and recruitment firms, to startup marketing for both Identified and Bright.com, prior to their respective acquisitions. When she's not doing marketing, you can find Jen snowboarding in Tahoe with her husband, traveling abroad, or enjoying a night in with friends and a good bottle of wine. She's a graduate of the University of California, Santa Barbara, with a degree in Socio-Economic and Political Global Studies.