Staffing Agency and HR?

[chelle21689]

Hi, I don't know if some of you guys remember me but several months ago I asked about the staffing agency start ups.

I just accepted a job as an HR Coordinator and consists mostly me taking in resumes, screening, interviewing, etc. I really like the job and I'm happy because it was so hard to break into the HR field. Although I like my job and the company, I can't help but still think about how nice it would be to own my own business ONE day.. maybe when I turn 30 and start taking real action.

Do you guys think that building that HR experience would be valuable towards this goal one day?

One thing I can't help but wonder is why do companies pay agencies to search for employees when they can do it themselves? Is it that cheaper?

[chelle21689]

I'm not a recruiter or a head hunter, I receive applications. If that helps

[Freelancier]

One thing I can't help but wonder is why do companies pay agencies to search for employees when they can do it themselves? Is it that cheaper?

A company will pay the recruiting firm a third of the first year starting salary for a winning candidate and nothing if the recruiter can't produce. That's certainly cheaper than doing it yourself if you're going to be picky, because it saves you sorting through hundreds of unqualified CVs to find the few diamonds that you might want to interview. And the recruiter will do a first interview for you to make sure the candidate matches their CV. So, yes, in some instances, it's definitely cheaper to use a recruiting firm. But if you've got your own underutilized HR department, then it can be cheaper to do it in-house. It just depends on the situation.

[chelle21689]

A company will pay the recruiting firm a third of the first year starting salary for a winning candidate and nothing if the recruiter can't produce. That's certainly cheaper than doing it yourself if you're going to be picky, because it saves you sorting through hundreds of unqualified CVs to find the few diamonds that you might want to interview. And the recruiter will do a first interview for you to make sure the candidate matches their CV. So, yes, in some instances, it's definitely cheaper to use a recruiting firm. But if you've got your own underutilized HR department, then it can be cheaper to do it in-house. It just depends on the situation.
Thanks for explanation. I know the multi-billion dollar company Limited Brands has HR but for some reason uses staff agencies. Do you think building my background in HR would contribute A LOT to this or do you think it's somewhat of a help?

[Freelancier]

Do you think building my background in HR would contribute A LOT to this or do you think it's somewhat of a help?

Contribute a lot to what?

My wife has spent a lot of her career working with HR people and the thing that jumps out at us is how often companies run their HR department as an expense and not as something to reduce costs (unless by "reduce costs" they mean reduce headcount). In the collective minds of those organizations, HR doesn't produce revenue or save money, so it's one of the first places where things get cut. So HR departments are often understaffed and outsource their functions -- like company-to-employee communications -- to overpriced consultants. Which is awesome if you're one of those consultants, but not so great for someone with HR skills who wants to work for one company.

Just something to think about.