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What Are the Main Types of Agency That Organisations Use in Recruitment? What Are Their Major Costs and Benefits?

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Submitted By blaine
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What are the main types of agency that organisations use in recruitment? What are their major costs and benefits?

I. Introduction

This essay examines the major cost and benefits of the main types of agencies, that organisations use in recruitment. In first part I will explain background of the market. Then I will move on to explain each of the types of agency used in recruitment. After that I will carefully examine their major costs and benefits and as a conclusion I will explain where I see a future of the recruitment market, supported by my arguments for the strongest type of market.

II. Background

One of the ways how the company can attract potential employee is to advertise job vacancies through the employment agencies. Recruitment market in the UK changed a lot over the last decade as it was influenced by factors such as: immigration, ageing of population, evolution of internet, slow growth of economy in the UK, war in Iraq, changes in working patterns and many regulations supporting disadvantaged groups of working age people.

The recruitment market is from government side regulated by The Department of Work and Pension. The government is committed to take care of the welfare of its people. Department of Work and Pension helps to tackle contemporary issues with introducing New Deal, creation of Jobcentre Plus and introducing National Minimum Wage. Proposal of the new Welfare Reform Bill is debated in the House of Commons and hopefully will come into practice in 2007. Employment agencies are also regulated within this much expected new reform. (DWP website) and (Murphy, 2005)

As the UK operates within an EU market, there will be another directive AWD – EU Agency Workers Directive coming in to force, but at the moment is shelved as EU plans a much broader directive. (Keynote 2006) However major survey about the impact of workers from EU on...

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