Supply-Chain Hiring Strategies or hire recruitment agency

Manage The Labor Shortage Like a Pro With Supply Chain Strategies-Or consider a recruitment agency.


Managing the labor shortage during the Great Resignation wave has become a priority for corporate boardrooms and top management around the country. 

In logistics and supply-chain, results come from proper planning. Businesses understand this concept as it relates to the goods they procure and produce, but few apply those strategies to hiring, training, and retaining talent. 

Employers looking to hire the talent to run/grow their operations, are going to have to improve their talent sourcing channels and focus on improving their workforce skills. The latest report from Harvard Business Review, provides strategies on how to manage the current hiring crisis with supply-chain like strategies. These are some of the strategies they recommend:

– Employers must work actively to draw from a broader talent base. 

This means recruiting from a wider set of feeder jobs and geographies. Some candidates may not have all the skills needed for a job. Can the rest be trained? Employers will also need to reevaluate job requirements to determine which are truly necessary and which are “nice to have”.

– Employers must invest in “growing their own.” 

Most employees find that the best way to climb the ladder, is to leave the company, driving turnover. Only 31% of workers with expertise in emerging technologies were promoted from within. Employers need to invest in their workforce in the same way they invest in R&D. The best companies make planning promotion a part of each performance review.

– Employers need to implement fundamental principles of supply-chain management. 

Companies need to share job specifications with colleges, meet regularly with them, provide access to experts and technology, discuss their requirements, evaluate their performance, and offer data-driven feedback. That’s especially important given the misalignment between America’s community-college system and the job market. Only 17% of community-college enrollees make it to a bachelor’s degree.

Americans have never been prone to accepting any type of shortages and always find solutions to problems, that’s when perhaps considering hiring a recruitment agency comes into play. 

Hiring the right staff is crucial to your business, so it’s important to hire a good recruitment agency to get it done correctly.

A professional recruitment agency can be the best way to quickly and effectively find and hire quality candidates for your business. However, there are several advantages of using an agency for your hiring needs.

Hiring a top-rated agency can shorten your time-to-hire, increase employee retention, and reduce your overall talent acquisition costs. Some companies hire agencies because they don’t have access to candidates that aren’t actively looking/applying for jobs, or they’re in-house recruitment teams are swamped and they have open jobs of more than 30 days, or they just are too busy and need the time-and money-consuming recruitment process taken out of their plates.

There are plenty of reasons to work with a recruitment agency, but you should always consider a number of factors before you make a choice. 

We’ve listed the top five areas you need to consider when choosing a recruitment agency below…

What type of agency are you looking for?

If you are considering hiring a recruitment agency to staff your business, you should consider which kind of agency is best suited to your needs. There are different types of agencies suitable for different types of jobs.

Unsurprisingly, you’ll find a lot of agencies specializing in finding people for white-collar jobs. Go further into this field, and you can start narrowing down your options.

The agencies with thousands of staff and large pools of talent can hire at every level, across a variety of industries. Smaller boutique agencies with focused searches focus on specific industry sectors. This is great if you want a narrower focus and want to fill a more specialized vacancy.

When looking for a job outside of traditional agencies, you can often find staffing companies who hire people on a temporary basis – great for jobs that require short-term work or jobs where you need someone to cover a temporary absence.

At the top of the market, you’ll find niche agencies that focus on executive roles. These companies will hire executives who are active in senior roles and they’ll pour more effort into finding the right candidates, even if they’re not actively looking for a new job. They’ll typically pay a higher rate for these candidates.

Know what you’re looking for

Having a clear vision of what kind recruitment agency you need to hire is the first step. The second step is to determine what you need from your new employee and what he needs to bring to the table.

A great job description will help you find the right candidate. It should clearly state the tasks and responsibilities of the job, your working environment, the salaries you are prepared to pay, your organization structure, and hiring preferences.

If you can provide the agency with more pertinent information, you will have a better chance of getting results.

Do some research

After you figure out what type of agency you want, you’ve got to find the best agency for that specific role. Usually, this means you should narrow down your list of agencies.

Go to the agency’s website and you will see what the agency’s capabilities are, what their strengths are, and whether or not they can help you. Look at case studies, testimonials, and evidence of previous clients.

Search for an agency’s social media profiles. Check them out to see if they have a positive and active presence in the wider world.

Interview the agencies

Browsing the web is not enough to decide on recruitment agency, having a good conversation is a must. Having a phone or zoom call doesn’t necessarily give you all the information you need, but you’ll be able to create a shortlist of favorite or potential agency partners.

When doing interviews with agencies, it’s important to ask questions that help you learn about the company. See it as if you were interviewing a candidate for a position. This helps you get a better understanding of their story, background, and approach.

Using this approach will allow you to get the most information about the timeframe in which the process should be done, as well as to know if they are flexible enough to accommodate your needs.

At this stage, it is possible to ask about the guarantees given by potential agencies. Most good agencies provide companies with a 3 month replacement guarantee. If during this time, the employee resigns, leaves, or is fired because he or she is not a good fit, the the agency should provide candidates to replace your employee at no cost to you.

Make sure it fits your budget

Consider the financial implications of hiring a recruitment agency early on. Recruitment agencies can offer your business the perfect candidates for your roles, but they do cost money. So consider the financial implications.

Many recruitment agencies work on a contingency basis, meaning that your business is billed only if you decide to hire the candidates they present. This helps remove the cost of an in-house recruiter (or takes load off your recruitment team), removes initial costs, and eliminates some risk. However, if you don’t have an exclusive agreement in place, a recruitment agency may offer the candidate to other companies as well.

In general, you will have to pay what’s called a placement fee.  These fees depend on the level of service offered and range 20-30% of the annual salary.  Some agencies charge more than 30%, and the more senior a job is, the more likely you are to be asked to pay 40-50% for senior positions.

Another way to hire agencies is on a retainer basis, where you pay the agency’s fees up front (or in stages). This provides protection from any missed engagements and gives the agency time to plan and allocate more resources for the search. It is used for executive positions or key roles and it provides a more thorough process, higher retention, and a better replacement guarantee.


If you are going to hire an agency, you should have a clear idea of how much you will be spending on their services, but at the same time, calculate how much that job opening is costing your business, then figure out the return on investment you’ll have.

You can use this free Cost of Vacancy Calculator to determine how much your job opening are costing your business and to determine if hiring a recruitment agency makes sense.

Happy Hiring!


Eduardo Alarcon



Supply-Chain Hiring Strategies or hire recruitment agency