Overview of human resource staffing service in Vietnam
Outsourcing human resources recruitment services is a trend for many businesses today. Undeniably, people are always the most valuable resource of a business. However, how to attract suitable personnel is still a difficult problem, especially in this period of volatile labor market. Companies always want to find candidates who are suitable for the business and share the same development direction, which requires business to invest a lot of costs and time. In this article, Smart Solutions For Business Company Limited (S4B Vietnam) will show you an overview and background situation of staffing and human resource management service in Vietnam.
1. What is a human resources recruitment service?
Human resource recruitment service is a service provided by Recruitment Agencies (Manpower supply and recruitment service companies) to businesses that need to recruit workers. These companies are third parties that search and select the most suitable candidates for businesses that need to recruit workers.
Current human resource staffing services will often search for candidates’ input profiles at universities, recruitment floors as well as through introductions, store records and notify candidates about jobs as soon as a company becomes available. This is a simple way for companies to optimize in-house human resources activities.
Don’t confuse human resource staffing agency with employment agencies. Recruitment agencies are headhunters specializing in finding human resources, their customers are businesses (B2B) that need to recruit workers. As for Employment agencies, they introduce jobs to job seekers, meaning their customers are workers (B2C).
2. The difference between recruitment services and staffing in human resource management in businesses
2.1 Recruitment responsibilities
For recruitment companies or headhunters, they often receive jobs from many companies and many different fields. Furthermore, they also have to deal with high recruitment demand from customers, from recruiting senior positions to short-term and contract employees.
On the other hand, they are also rarely able to recruit employees who can fit the company’s culture. The reason is because they only specialize in recruitment instead of working inside the company to understand the customer’s working culture. Therefore, although businesses include company culture compatibility as a recruitment requirement, not all headhunters can ensure this standard.
In contrast, corporate recruitment HRs always focus on recruiting for their company. This is also their main responsibility in the business. Therefore, they only focus on one company and one sector.
In addition, by imbuing the company culture, they can recruit candidates with the potential to quickly adapt to the business’s working environment. This helps increase senior management satisfaction as well as create an easy step for new candidates to familiarize themselves with the company’s culture.
In short, corporate recruiters can meet cultural needs better than human resources recruitment services.
>>>Read more: 5 Times When You Should Use IT outsource staffing company
2.2 Skills and expertise in human resource recruitment
For human resources recruitment services or headhunters, their work faces huge time pressure. With the goal of business growth, recruiting partners as many candidates as possible, therefore, the quality of candidates may be reduced. For many recruitment services, they will make it less difficult for candidates and poor quality employees can easily pass through their screening. In addition, they also face huge time pressure. The reason is because they also have to compete strongly with other human resources recruitment services. Therefore, if they do not recruit candidates promptly, they will likely lose the opportunity to grow sales.
Besides, headhunters also have the advantage of being exposed to many customers and recruiting in many fields. Therefore, they have a lot of experience and an overview of the Vietnamese human resources market. However, this is also a limitation of headhunters when they cannot focus their recruitment skills and expertise on a certain market/field.
In contrast, corporate recruitment staff have a clearer understanding of the company’s field of operations. Therefore, they can easily evaluate the necessary skills or mindset of candidates to succeed in the position that the company needs. The drawback of HR recruitment is that it is more difficult to optimize recruitment time. With the goal of recruiting high-quality employees for the business, they will take more time to search and review.
2.3 Recruitment cost
Recruitment costs are one of the criteria to evaluate the recruitment effectiveness of a business. For human resources recruitment services, headhunters only receive a basic salary. Their main income comes from “commissions” between recruitment contracts. Therefore, the level of competition among headhunters is very high.
If you are a business using third-party human resources recruitment services, the contract amount will be divided between the service company and the brokerage fee for the recruitment headhunter. In short, you will have to invest more to get the candidate you want.
However, you will only have to pay companies that provide human resources recruitment services if you really need them and when the business has positions to fill.
So between headhunters and corporate recruitment personnel, which side has higher recruitment costs?
On the other hand, corporate recruitment staff outsourced hr solution will have a lower income than recruitment companies. However, you will have to pay them in the long term, causing the company’s recruitment costs to increase. However, recruitment costs always come with quality. In addition, using the right resources and recruitment expertise will help the company have talented people who can quickly integrate into the culture of the business.
Above article has analyzed outsourced hr solution and the difference between recruitment services and human resources recruitment in businesses. If there are any confusions that business needs clarifying, please do not hesitate to contact us:
S4B Vietnam
- Address: Unit 602A, Tower A, Handi Resco Office Building. 521 Kim Ma Street, Ba Dinh District, Hanoi
- Tel: + 84 24 3974 4181
- Email: service@s4b.com.vn
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