Do you know how many Recruitment Agencies are in Malaysia as of 2020?
There are 994 Recruitment Agencies! (and this is the number of officially registered agencies)
It's very difficult to find the most suitable one out of 1,000 options, so let us please disclose 3 facts, and conclude the method in the end.
Fact 1: Recruitment Agency = Database Business
Yes, recruitment agency is actually a database business. In order to understand it well, let's see what they are doing as 5 steps:
- Get a recruitment case from you (=client)
- Find multiple candidates from the database (target is around 10)
- Make sure the interest from the candidates (target is around 3)
- Introduce the candidates to you
- Make sure the process (interview - offer - join - retention), and close the case.
The candidates' information is simultaneously updated to the latest one on the process, which maintains the quality of the database up to date.
It's heck of a ground work, but that's the reason why recruitment agency has a lot of employees inside. That's also perhaps the reason why there are 994 registered recruitment agencies in Malaysia.
Anyway, on this chapter we just wanted you to know that it's a database business, so finding a right agency is like a finding a right database.
But don't you wonder where the database came from? Yes, it's the next chapter, and you'll be able to identify the strength of each agency after reading.
Fact 2: Origin of The Database
To be honest, the database is everywhere. Facebook, LinkedIn, or all over the internet world.
However, they are unfortunately not in a best form for the recruitment purpose. We can barely know their expertise or experiences.
That's why there is a "guessing specialist" called Recruiter!
Whenever the recruitment agency received a sourcing request which is not matched with their database, agency orders their recruiters to find the candidates from outside.
The recruiters start guessing where the targets are, read the profiles until they smell something, and get connected with soft targets first.
If lucky, that's the candidate. But often they are not exact-match, so the recruiter starts connecting with as many people as possible within or around that network.
Again, it's heck a lot of ground work. But eventually the information is accumulated (even from one project, 10 or more candidates information can be gained).
This is the reason why each agency has different strength. Yes, it is made by you and other clients.
Therefore, you should simply check the opening positions on the webpage first. If nothing is disclosed, you can ask what are the current projects.
Now, you can explore with the clearer insight. We hope you are confident to communicate with each agency with a fair understanding.
So for the last, let's match with your budget.
Fact 3: Recruitment Fee Structure
We made a particular article for this topic. Please refer to "Recruitment Fee in Malaysia 2020" if you wanna know the details.
Okay, we just put the practical information only here since you must be a busy business person!
Recruitment Fee = (Monthly Salary x 12 months) x Agency Rate
Here is the typical agency rate table:
Agency Rate 1: Candidate's Monthly Salary basis
|Candidate's Monthly Salary||Agency Rate|
|RM5,000 - RM9,999||18%|
|RM10,000 or above||20%|
Agency Rate 2: Candidate's Job Title basis
|Candidate's Job Title||Agency Rate|
|Manager / Senior Manager||18%|
Agency Rate 3: Expertise / Nationality Basis
|Candidate's Expertise / Nationality||Agency Rate|
|Foreigner / Expat||+5%|
Recruitment agencies often mix these factors and hold their original rate, so you don't have to remember all right now. Whenever you got TOB (terms of business) from the agency, please feel free to come back here to check back.
But yes, now you may be feeling that there are too much things to do for selecting an agency.
So, here is the solution from us.
Seekers: Flat Rate Headhunting with 100k database.
Seekers started the business as a Headhunting Tech company since 2016 in Malaysia. We have more than 100,000 candidates in our database, and also affiliating with over 20,000 Malaysians as a freelance-recruiter as of July 2020.
Our database is strong in Senior Executive - Management Level (RM4,000 - RM15,000 class), all industry and specializations.
Regarding the fee, since the market price is too expensive, and the agency rate is often unfair, we offer you only the flat rate Max 15%.
If you don't have the time to investigate the agencies, we wish you would consider using Seekers.
Contact our Corporate Care
Ezzati | Corporate Care Executive
We hope this articled helped you, and looking forward to hearing your enquires as well. Have a good recruitment!