What are the advantages of using a recruitment agency?

Recruitment is challenging for many companies, including SMEs. In a highly competitive environment, attracting talent can be complex for this type of structure, although they can draw on a number of advantages to achieve this. These companies can also use the services of a recruitment agency. This can be particularly helpful, as Gwladys Costant, Partner at GOTOFreedom, explains.

What are the specific recruitment needs and challenges for SMEs?

Recruitment is even more challenging for SMEs than for major international groups, as these businesses tend to work less in silos, i.e. based on the model of one team/one responsibility. Given their size, SMEs primarily need employees who can take on responsibilities across a number of different areas. They are looking for candidates capable of understanding the business model of these small and medium-sized structures, as well as their respective business segments. This process is easier for some sectors. For example, in the financial sector, it is harder for employees to understand their value added in the production chain. Another challenge for SMEs is to find employees with a highly developed sense of commitment and responsibility – and this is imperative, as there is not always a backup for every position. The work that is achieved (or not achieved) is therefore more visible than in a large company.

Given their size, SMEs primarily need employees who can take on responsibilities across a number of different areas.

What are the specific difficulties encountered by SMEs due to their size?

Recruitment is challenging for any company these days, irrespective of their size or sector. We are dealing with an ageing population. It is estimated that more than 20% of the population will be over 50 in 2030. Luxembourg is less competitive and attractive than neighbouring countries, making the situation even more complex.

Size is not therefore necessarily an issue. On the contrary, a small outfit enables employees to make more of a meaningful impact with their work, which is highly sought after today. What is more complex for SMEs, is to work on their attractiveness. If they operate in a little-known sector or one that is considered unattractive, it will be difficult to appeal to employees with the profile they are looking for, unless they have worked on publicising their advantages as an employer or have a well-known management team that can attract candidates naturally through its network. Candidates will tend to apply to companies whose brand is part of their everyday life.

Why should they seek support from a specialist recruitment agency?

The support of a professional generally guarantees higher quality service. In recent years, recruitment has become much more complex, and today it remains primarily a candidate’s market. When candidates embark on a recruitment process, they can often choose between several offers. Based on the survey carried out by the Luxembourg Employers’ Association (UEL) and the Federation for Recruitment, Search & Selection (fr2s), 91% of candidates had the choice of several employers in 2023. This figures is 75% for 2024. Some recruiters wrongly believe that they will definitely be able to attract the right candidate. However, these days, recruitment requires the company to properly identify its needs and be able to manage candidates as part of the recruitment processes.

Using a recruitment agency also helps improve your image as an employer in the future.

Using a recruitment agency provides you with advice on your needs, help with the successful completion of the selection process, and work on improving your image as an employer in the future. Employers think it is very easy to recruit. However, a well-edited recruitment advertisement published in the appropriate medium is crucial to targeting the right candidates. Competition between companies and between European countries is very strong. It’s worth bearing in mind that a poor recruitment campaign is catastrophic in terms of cost, time, reputation and impact on the team.

What are the main advantages?

For optimum impact, long-term cooperation is best. An agency that knows its client and their corporate culture will make all the difference when it comes to selecting the best candidates in the market and saving the SME time. We do much more than provide CVs and our value added is that of an expert who can ensure that the role offered properly meets what candidates are looking for. We often find that mandates are not filled because they do not match what candidates are seeking. A company can improve its short and medium-term attractiveness thanks to the agency’s knowledge of earnings practices (competitive salaries and fringe benefits) and time horizons, and a professional approach that will raise the company’s market reputation.

What are the different services generally offered?

A recruitment agency generally offers 360-degree recruitment advice. Thanks to our in-depth market knowledge, we also understand our clients’ competitors. We can therefore advise on the organisational efficiency of the department looking for extra staff. We can let a company know whether the recruitment is feasible based on the specified candidate profile, responsibilities, package etc. We can also offer recommendations on the process itself, interview techniques, etc. Many interviewers are not generally trained to conduct interviews. Yet this is a true selection process and a chance to properly present your company.

A recruitment agency can also advise on integration matters. The recruitment process does not end when the candidate signs the employment contract. Onboarding advice is therefore just as key as preboarding advice. Some candidates can become quickly disappointed as they are not perfectly integrated and do not have the opportunity to create a sustainable employer/employee relationship.

All this depends on making the recruitment process more professional: what questions need to be asked to ensure the right skill sets? When and by whom? Agencies can optimise the recruitment process and provide feedback on the employer’s image. To help choose the right partner, companies can contact recruitment agencies who are audited and certified by the fr2s (Federation for Recruitment Search and Selection).

Your words must be aligned with your deeds, from the interview, via the employment contract, and through to integration.

What advice would you give managers and HR teams at SMEs to ensure successful recruitment campaigns?

I would advise them to tell the truth and remain authentic. For this, their words must be aligned with their deeds, from the interview, via the employment contract, and through to integration. It’s important to explain things properly, without overselling or caricaturing tricky situations, in order to avoid any nasty surprises.

I would also advise them to think about “sustainable recruitment”. A successful candidate should still be with the company tomorrow and over the longer term. If your recruitment is based on potential, you will create a long-term relationship that enables a company to be more competitive thanks to lower employee turnover. For this, you need to invest in high-potential individuals.

It is also key to take a professional approach. A successful recruitment process requires certain techniques that a recruitment agency can help improve.

In a period when some people consume jobs the way they consume other goods, it is more useful than ever to develop a shared employer/employee project that will instil a relationship of trust.