Having a specialist recruiter available to help in specific industries is critical to hiring the right person for the job. All organisations great and small, need external agency support from time to time in order to fill critical positions where a specialist recruiter can tap into talent outside of the employer’s network. The verdict is clear, specialist recruiters make a significant difference to time to hire, and quality of candidates.
Traditionally, when organisations reach a certain size, they decide to set up preferred supplier agreements (PSAs) with a number of recruitment agencies. Before the rise of HR tech and vendor management platforms, this was to ensure that when a position couldn’t be filled internally, they had pre-agreed rates and terms in place with agencies that can assist in that certain job type.
Much like horse carts before cars, leading employers are now future-proofing their talent acquisition requirements by evolving to a recruitment marketplace that provides an ‘Elastic PSA’ so that they have the right hiring support, at their fingertips whenever it’s required.
The main differences for employers are as follows:
| PSA | Recruitment Marketplace |
|---|---|
| Agency-based engagements | Specific recruitment consultant engagements |
| Static Fees and Replacement Terms | Favourable fees and replacement terms via silent auction |
| Less specialism: eg IT agency assists with all IT roles. | Niche specialisms: eg Cyber-security, Infrastructure, Software Engineering specialists work on niche roles |
| Limited number of agencies to assist | 500+ specialist, vetted agencies ready to assist |
| Procurement issues with using off-panel agencies | Single vendor relationship for complete vendor flexibility |
| Majority of agencies are large, multinational organisations | Corporate social responsibility by working with multinationals through to independent, boutique agencies. |
| Agency selection based on historical hiring needs | Consultant selection based on current and future hiring needs |
| Limited points of differentiation when selecting recruiters | 15+ data points to compare and select the right recruiter |
| Panel agencies expect follow-up work for duration of PSA regardless of outcome | All recruiters rated by the employer after each assignment - The cream rises to the top |
| Recruiters obliged to work on roles regardless of current capacity and candidate availability | Recruiters opt in to work on a role depending on their capacity and candidate availability |
Download the full report
Read about the 150+ TA Managers that have upgraded to using a marketplace to get more from their outsourced hiring.
While some employers may want to use a recruitment marketplace such as TalentVine to hire on demand and get competitive market rates from all recruiters working in an industry, larger organisations will use TalentVine to hire consistently and benefit from having preset rates and customised terms of service that all recruiters agree to before bidding on any roles.
What if my company already has a PSA?
You can use TalentVine to:
- Manage your existing panel
- Use the ‘Elastic PSA Marketplace’ in place of your panel, or
- Have the marketplace on standby as your ‘tier 2 panel’
Alternatively, when a PSA comes up for review, your business can start with a clean slate and use TalentVine as your PSA. Simply notify the recruiters you know and trust with you and get access to Australia’s best recruitment agencies through TalentVine’s existing recruitment network.
If you’d like to find out whether TalentVine is the right model for you, please get in touch with the team today on 1300 940 459 or info@talentvine.com.au.
