Are Talent Marketplaces the Future of Talent Acquisition?

The workforce in the post-pandemic world has different expectations from their employers. While looking for jobs, candidates closely look at the parameters. These include engaging in meaningful work throughout their employment tenure, fair compensation, and opportunities to grow. Hence many companies are making drastic changes in their hiring practices to improve the employee retention rate and suit candidate needs. 

Since many organizations are transforming their workforce structure to hybrid, companies will tap into new and non-traditional talent pools to find ideal candidates.

For most recruiting agencies, finding these sources can be tough. It has induced companies to look for other reliable sources such as talent marketplaces. Talent marketplaces are making it easier for organizations to hire on the basis of skills and connecting candidates to better opportunities easily.

How Does Talent Acquisition Work in the Post-Pandemic Era? 

1. Hiring Internally through Talent Marketplaces: Taking internal references and job postings a step ahead, companies are establishing talent marketplaces within the organizations as well. Talent marketplaces not only help employees find better opportunities as per their interests within the organization but also eliminate the element of business through references. Employees get a particular opportunity or project solely based on one of their many skills and experience. If done right, these talent marketplaces can offer benefits across talent acquisition, mobility & management, and organizational agility.
2.  Closing Vacancies Through Recruitment Agencies: Almost everyone is familiar with recruitment agencies in one way or another, but many people are actually unaware of how they work. Recruitment agencies work with clients directly on job vacancies and source quality candidates to fill those vacancies. Clients then pay a finder’s fee to the agency. In simple terms, recruitment agencies are intermediate between candidates and companies.

Process agencies commonly follow-

• Agreement: While deciding to work in a recruitment agency, companies first need an agreement that generally includes the retainer fee or contingency fee structure. 
• Profiling: The next step is when agencies connect with you to understand the requirements such as job description, important skills, and other attributes. 
• Sourcing: Agencies scan their own talent pool and network to find qualified candidates. They scan every application received & create a list of potential candidates. On average, only 2% of applicants reach the interview stage. 
• Interviewing: The interview process generally has two phases. First, agencies conduct the interview to understand if the candidate is an ideal match. Selected candidates go to the second phase and are interviewed by the company. 
• Placing Offer and Negotiation: When companies have finalized their perfect candidate, agencies also assist with extending offers and negotiating. By taking this responsibility into their hands, agencies save companies a lot of time and effort. 
• Onboarding: If the company wishes to, agencies also assist and ensure smooth employee onboarding. Agencies help both the parties complete necessary paperwork and ensure the new hire feels comfortable and welcomed.

Recruitment Agencies vs Talent Marketplaces 

The changing workforce structure requires better, dynamic, and time-saving tools for effective management. External talent marketplaces help

companies to source and onboard talent, saving more time than hiring an agency.

1. Saving Money on Talent Acquisition: As per a survey conducted by SHRM, the average cost per hire through traditional methods is around $4000. External talent marketplaces allow companies to post jobs and fulfill their needs in one place. Companies that are not looking to hire full-time employees can avoid spending the same costs for hiring gig workers by using an online talent marketplace. Also, searching for new skills with talent marketplaces hardly poses any risk. It is because talent marketplaces provide access to better information about the candidates' skills and their qualifications. 
2. Access to Top Talent: While both methods ensure access to top talent, external talent marketplaces are a step ahead. Candidates in talent marketplaces show a great deal of initiative and zeal in addition to skills. Most of the candidates signed up on talent marketplaces have great experience. Even freshers have great confidence in their skills and impressive portfolios. 
3. Future Planning: The emergence of a hybrid workforce and gig economy clearly indicate where the future of work is heading. With external talent marketplaces, companies can take advantage of emerging skills and technologies and predict changes. It can help companies create better training programs. Also, a quality external marketplace will always keep important forecasts in check and implement new ways of working accordingly. 
4. Ensuring a diverse Workforce: The network of a recruiting agency is often restricted to a certain nationality or region. With external talent marketplaces, companies get easy access to global talent. For one position, you can find applicants across the globe. It not only brings diversity but also brings different perspectives to the table. 
5. Flexibility: It is comparatively easier and cost-saving to find and onboard people on a pay-per-project basis from a talent marketplace. With external talent marketplaces, companies can hire people and create project-based teams. It allows them to get the work done faster with agility and flexibility.

Will Recruitment Agencies Eventually Disappear in the Future?

Recruitment agencies are not about to disappear in the future. However, technologies such as artificial intelligence and machine learning are already seeping into the industry and will impact how agencies will work. For instance, as per a report by Glassdoor, agencies receive an average of 250 resumes for one vacancy, from which 4-6 candidates get a call for an interview, and one is selected. Giving control of these time-taking tasks to technology will save so much of the agency's time.

As the traditional ways of recruiting are undergoing massive changes, agencies will have to find ways to adapt and work hand in hand with technology. Also, it will be necessary for agencies to rely more on their selling skills. They must be able to influence and advise clients they will be working with. 

Agencies will find new talent pools to solve their inability to tap gig workers. To solve these woes, recruitment agencies can partner with talent marketplaces like FlexC to connect with top companies and candidates and multiply revenue 10x. FlexC's in-built AI engine will help agencies in the screening of candidates. FlexC will provide a technology-packed secure platform for agencies to track, manage and store candidate databases.