Why Big Companies Don’t Use Recruitment Agencies

Think your company needs to use a recruitment agency to hire new employees? The big companies don’t use them, and we don’t think you should either. Here’s why.

They’re expensive

Topping the charts as one of the most expensive resources for companies, recruitment agencies can burn through a company’s budget like wildfire. Not to mention the cost and risk of a wrong hire, for example, someone who leaves the company after a short time, after realizing the job is not for them.

They’re ineffective

When it comes to recruitment agencies, speed is the name of the game. Because they are in constant competition with other recruitment agencies, they are looking for fill positions as fast as possible. This means they are not looking for quality, and they generally access the same small candidate pool over and over again. And even after all of this, they are still not the fastest way to hire new employees.

They’re old-fashioned

The world and its networks are moving faster than ever before – and it’s not going to slow down soon. No one reads newspaper ads anymore, and job boards are a snail-paced way to find candidates. What about the millennials – how do they reach them? And what about the passive candidates who are not actively searching for a new job but are still interested? Research shows that 90% of professionals are interested in hearing about new job opportunities, so reaching these people is now more important than it’s ever been.

They’re not experts on your company

A recruitment agency’s goal is to fill your positions, but how should they know who is best for the job when they don’t actually it’s day-to-day duties? They may understand the company’s culture as it’s described on paper, but have they really experienced it? Do they feel as passionate about your business and it’s vision as your employees and business partners? We doubt it.

So how do the big companies hire?

They use an employee referral program!

In fact, it’s the common denominator in how the big guys hire.  Referrals are found to be a more successful recruitment avenue than career sites and big job boards. For companies such as Google, Uber, Apple, Microsoft, and Linkedin, just to name a few, referrals are one of the best sources for hire simply because employees know which candidates would be best for the company. It saves the company time and money and provides them with culturally suitable, better-performing employees who stay with the company for longer.

As the most successful source of hire, employee referral programs can no longer be ignored.  It’s true that the big companies have the ability and finances to build their own internal employee referral program, and many of us don’t have that kind of luxury. However, companies and startups of any size can use the same methods and technology to hire successfully. An online employee referral program, such as Firstbird’s, can allow any sized company to invite their employees and business partners to help them recruit. So you certainly don’t have to give any power or money over to those behind-the-times recruitment agencies, and you definitely don’t have to be Apple or Uber to hire the best. Any company can hire great employees exactly the same way they do – through their own networks.


So if you’re ready to hire great candidates the same way the big guys do, check us out.

3 thoughts on “Why Big Companies Don’t Use Recruitment Agencies

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  1. I disagree. My company in Japan cares a lot about their candidates and the clients. We have refunds for our clients in most of our contracts for up to six months of employment. All of these companies must also interview the candidates and we need permission from candidates (and must follow strict compliance laws) before we can even send their resume and this requires us to know a LOT about our clients and the industry.

    I don’t know which company you used but it wasn’t mine…

  2. recruitment agencies have sent me to jobs In fields I knew nothing about which ended badly for me and the company. More and more of these greedy leeches are popping up all over the place so I agree with the author, companies definitely do not need the assistance of a middle man whose only objective is to line their own lazy pockets.

  3. Dear Nathalie,
    These rumors are just because of bad recruitment agencies those who recruit only for earning money and doesn’t care about the relations. We’re hiring for Gulf country companies since 2008 and not received any bad complaints regarding recruitment.
    Kind Regards,
    Landmark HR Consultant

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