Agencies may use platforms but not all platforms are Agencies
Job boards/ platforms and recruitment/ placement agencies are very different
Job boards/ platforms are a website, and as such is merely a tool. A recruitment/ Referral agency is a business that uses job boards and dozens of other tools as a part of their doing business.
A job board/ platform are simply an avenue to post a job where job seekers can apply. People that apply may be under qualified (or over qualified), not in the correct compensation range, or may not have an understanding beyond surface level of what the role is actually about. The company/ person with the job opening; if they have found someone they wish to interview via a job board/ platform, are then tasked with managing the hiring process. Most boards/ platforms are automated and have little to no human interactions when matching the worker to the job, so it’s often hit or miss
A recruitment/ Referral agency proactively “sources” qualified candidates for both current and upcoming job openings. They will share the requirements for the role and “thoroughly vet” the candidate to make sure they meet those requirements. They will then share much more about the open position with the candidate and makes sure the position fits logistically (location, shift, travel requirements, etc.), that the compensation package is in line with the providers experience and requirements, and that the scope of work is appealing for the candidate. The recruitment/ referral agency will then help facilitate the entire hiring process until the candidate accepts the position, and often times after. Recruitment/ placement agencies are very hands on and require human interactions throughout the whole process
Which came first? – Agencies were around way before platforms and continue to be a preferred choice for many because of the human element vs. the automated processes
Platforms/ job boards –Instant gratification, possible long term regret
- Support on some freelance platforms can be very poor
- Burden of vetting the contractor/ worker/ service provider falls largely upon the consumer to perform, while some platforms offer background checks (often for an additional fee) they never meet the candidates in person for one on one interviews prior to referring them nor will they run any sort of drug testing
- Marketplaces vary widely in the depth and breadth of talent available, and many do not include any of the legal compliance vetting.
- The burden of establishing a clear contractor-client relationship is often left up to the person engaging the contractor/ worker/ service provider.
- If that match does not work out the process resets back to square one
- You, the end user will be responsible for issuing legal documents at the end of the year (1099 or w-2 depending on your relationship with the worker) and in the case of W-2 workers you will be responsible for withholding and reporting taxes
Agency – supports both the Contractor and the Consumer through the whole process as well as after the match
- By offering sector expertise (in our case we have over 37+ years of service industry experience)
- A product / service that is going to be well supported
- The ability to work alongside the client through a discovery phase and well into the actual engagement.
- Agencies are generally locally owned and operated by neighbors who live in and know your community
- The agency is responsible for completely vetting each contractor prior to matching them to the jobs, which includes in person interviews and drug testing
- Agencies are well versed in Independent contractor compliance and the applicable laws and regulations
- If the Agency doesn’t have a readily available and suitable candidate in its talent pool they will typically advertise the post/ position on behalf of the end user
- Agencies offer flexibility. If the originally matched worker is not available or does not work out the Agency can quickly replace that worker with another for seamless coverage
- Agencies handle all of the year end legal paperwork for taxes