Traditional VS Digital HR Agencies
Today, businesses and HR agencies in the world are challenged with the overwhelming tasks of processing all HR activities. Sourcing the right candidate, onboarding, managing benefits and payroll offboarding. All of this takes a large amount of time and resources. It is no secret that in order to be on the top leading board in every industry, businesses work closely with HR agencies.
HR in today’s world has evolved enormously. Technology can now accomplish many of the traditional responsibilities faster, cheaper, and better than before.
Agencies are now at crossroads, split between Traditional HR agencies and Digital HR agencies.
But what is the best alternative for your business? What type of agency should you consider? What is Traditional HR and Digital HR?
So many aspects and questions, but don’t worry, we are here to help !!!
Let’s take it from the top:
What is an HR agency?
An HR (Human Resources) agency is a company that is contracted to hire and staff employees for other companies. It can be a public or privately owned organization operating on a state or local level.
What does an HR agency do?
For example :
- Recruiting and staffing
- Compensation and benefits
- Training and learning
- Labor and employee relations
- Organization development
Types of contracts offered by HR agencies:
For example :
What jobs/positions are in an HR agency?
- HR manager
- Human resource generalist
- Personnel analyst
- Training development specialist
- Employment services manager
- Benefits specialist
- Benefits counselor
- Compensation and job analysis specialist
- Training and development manager
Traditional HR Agencies are mainly transactional and reactive. HR staff place job ads based on business requests for additional workers, respond to employee questions about benefits and payroll, and process terminations and resignations for employees leaving partner companies. In this reactive role, their actions can be fragmented and even rushed in some cases.
The Good | The human relationship in the recruitment process represents the deciding factor. The recruitment process starts at the stage of matching the position to the candidate and it does not end here. Recruitment consultants function as salespeople who create a bridge between the candidates and the client-side recruiters and expedite the process. Traditional HR agencies represent a marketplace of candidates and positions, and when the number of candidates and positions are larger, the chances of successful matching increases. Having a long term established database, traditional HR agencies, have a significant advantage for now.
The Bad | Labor intensive components of hiring like tests, job previews and interviews are used frequently in traditional recruiting. The traditional process has been marked by delays, communications problems and a long vetting process which results in the high cost of hiring.
The Bottom Line | The knowledge acquired over time by the traditional HR agencies should not be underestimated. Over the last decades, they have acquired a vast amount of knowledge in their field. Start-ups may understand technology, but have not yet learned what the experienced companies have managed to forget.
Digital HR Agencies leverage the power of AI in the recruitment process, which is optimized with data from social media platforms, mobile devices, analytics, and cloud based technologies in order to make HR more efficient, effective, and connected. It represents a major shift in the way Human Resources agencies function.
The Good | AI-driven recruiting proves that this method can be less discriminatory when it comes to race, age or gender. The new-generation AI has become progressively better in predicting the personality attributes of candidates based on the data available to them matching them more efficient with future positions.
Using data and analytics, digital HR agencies measure progress at every stage of the employee life cycle. From recruitment to retention and offboarding, analyzing each step with the intention of proactively adapting and changing when a given strategy does not work.
The Bad | There is no way to quantify (until now) the human relationship in the recruiting process. Technological tools reduce the resources invested in every candidate but also reduces human interactions. Creating an inability to correctly assess the personality of employs.
The Bottom Line | Digital transformation begins with a change of mindset within the HR agencies, putting a priority on connectivity, real-time operations, platforms, automation, and mobile-first. For many organizations, this is a revolutionary opportunity. The digital HR journey has a bigger focus on the employee and the HR experience has a large part in it, according to Deloitte’s Human Capital research.
Traditional or Digital?
Almost two-thirds of employees (64%) trust AI more than than a person, according to the second annual study on Artificial Intelligence (AI) at the workplace – “AI at Work”, conducted by Oracle.
When asked what AI can do better than a person, survey respondents said that robots are better at providing unbiased information (26%), maintaining work schedules (34%), solving problems (29%) and managing a budget (26%).
In contrast, when asked what people can do better than AI, employees mentioned that the first three tasks were: understanding the emotional side (45%), consulting and providing advice (33%) and creating an organizational culture ( 29%).
At the C-level, 81% of those who lead human resources agencies say that it is difficult to keep up with technological changes in workplaces.
Qemploy - the mix of both worlds
Both traditional and digital HR agencies have strong and weaker parts. But is it possible to collaborate with an agency that merges Traditional and Digital? Qemploy takes the strong characteristics of both worlds and improves the weaker parts.
The mission is to create transparency and digitalize the HR market by ensuring direct online communication between consultants and companies.
All of our clients have a full-time Qemploy HR manager that works closely with them in order to understand perfectly their needs and challenges. Also, conducts personnel analysis and handpicks the final tailored profiles for the perfect match.
Qemploy provides a platform where clients can search and contact freelance consultants, send contract proposals, manage time registration, and invoicing.
On the other hand, consultants have a profile with their competencies, experience and qualifications, a calendar to track professional engagements, the possibility of registering time per project and requesting payments.
Each consultant is assigned a human resource recruiter, doing a personal analysis and guiding them further in their carriers.
Qemploy takes the best from both worlds so you have one less decision to make.
Was there anything in particular that caught your attention?
Is there anything missing that you’re still wondering about?
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