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Secrets of a Successful Hire: Why a Great Tech Recruitment Agency is Key

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Secrets of a Successful Hire: Why a Great Tech Recruitment Agency is Key


With the current tech hiring trajectory, it's likely that tech startups to be concerned about how the recession will affect them. Unlike big tech companies, startups aren't financially prepared to survive a recession. During a looming recession, companies have an even smaller margin for error, and every recruitment decision is critical. But not to worry, your startup can weather this economic storm by being mindful of the efficiency of your hiring efforts. Partnering with the the right tech recruitment agency is a great start. Here's how you can help recession-proof your startup by partnering with a professional tech recruitment agency.

Table of Contents

Why Tech Startups Need to Prioritize How They Are Hiring Right Now

Tech startups need to prioritize their talent acquisition strategy now because: 

  • Talent is your greatest asset- The right talent is what differentiates struggling companies from successful ones. Hiring the right team can help your company reach and exceed its goals and lower the need to hire more employees, saving the company costs during an economic downturn.

  • You need a go-to recruiting strategy- You’re likely not looking to hire during a recession, but a recruitment plan is vital. Recruitment is an ongoing process, so searching for the best candidates the moment you need them creates huge inefficiencies and affords you less control of the hiring process.

  • Reduced staff- Companies tend to downsize during a recession. But this could mean more work for your remaining workers, affecting employee morale and productivity. It's essential to reassess your hiring strategy to prevent overworking your teams with recruiting tasks.     
     
  • A recession can be a period of great uncertainty for a startup, and this can promote bad decision-making due to a lack of clarity. A recruiting partner offers a different perspective, helping you make better hiring decisions.

  • Roughly 73% of recruiters find it challenging to find the right candidates  for open positions. You can rely on a great recruitment agency to handle all of  your hiring needs, thanks to their expertise and recruitment technology. This lets your team focus on the business’s core competencies, giving your company a competitive advantage in product launches and optimizations.

  • Companies are hiring remotely during the recession to cut costs. But there are so many factors to consider when hiring remote talent, which is why you should partner with a professional staffing agency that understands the ins and outs of recruiting remote talent. 

Prioritize your hiring needs by working with an experienced nearshore tech recruiting solution like TECLA. We let you secure your next wave of strong hires now, helping your company gain a competitive advantage when the economy recovers-whenever that may be.

Questions like: "How will this recession affect my company? What's the best plan B for us?" are beginning to linger in hiring managers' heads, especially in the tech market. Your next move matters.


What the Right Recruiting and Staffing Agency Can Do for Your Company

Here's why you should partner with the right tech recruitment agency:

  • It saves you time- It takes a company 36 working days on average to hire talent. A tech recruiting solution takes the time and effort out of the search for talent by providing qualified talent for open positions. A company like TECLA can help fill an open position faster than your in-house team. They use a combination of resources, including expert recruiters and smart matching technology, enhancing the recruitment process. Instead of weeks, you’ll have a candidate ready for the role in days.

  • It saves you money- You can lower your overhead costs by partnering with a tech recruitment solution that manages the entire recruitment process. Also, a tech recruitment partner like TECLA gives you access to a network of remote talent from Latin America whose rates are much cheaper than those of local software developers. For example, a DevOps Engineer in San Francisco, California, earns on average $156,662 in comparison to a DevOps Engineer with the same skill set from LatAm, earning $65,778.

  • Efficiency- A tech recruitment agency can present different hiring solutions, further simplifying the recruitment process. While your team works on what’s important to your core business goals, the right staffing agency will find the best way to hire the best candidate as quickly as possible.

  • Scalability- A startup's hiring needs tend to be unpredictable. Working with an agency means you have access to on-demand workers ready to fill in whenever a position opens up. Also, you need to work with a tech recruitment agency that understands the fluctuations of the tech market, helping you stay ahead of the recession curve. 

  • Quality candidates- Using a tech recruitment agency increases your chances of meeting high-quality candidates who meet the relevant skillset and expertise. TECLA, for example, gives you access to a talent pool of vetted candidates that are likely inaccessible to your internal HR.

  • Expertise- Recruitment agencies are able to provide you with valuable advice and insight. They are experts at what they do because of their interactions with companies and clients. They can advise on matters such as available skill sets, salary rates, current market trends, hiring complexities in a recession, career growth expectations, and more.

The Potential Risks of Partnering with the Wrong Tech Staffing Firm:

The wrong technology recruiting firm doesn’t have your interests at heart. When you partner with such a firm, you risk hiring the wrong candidates. A bad hire can cost a company roughly $14,900, lower team member morale by 32% and reduce productivity by 36%. Consequently, you won’t achieve your company goals, lowering your chances of surviving the recession.  Here are the risks of working with the wrong staffing agency:

Prioritizes quantity over quality-

Most recruitment agencies are out for money. So, they'll send any applicant your way, regardless of whether or not they've met your requirements.

Unmotivated talent network-

A tech recruitment agency that doesn't vet talent properly likely has a talent pool of unmotivated candidates who wouldn't be a good fit for your company.

Wrong candidates-

Subpar agencies lack a thorough screening process. So, they'll send you candidates who don't meet your ideal skill set, lack experience working remotely or aren't fluent in English.

Candidates may not be a cultural fit due to a poor onboarding process-

If the recruiter fails to present your company values, culture, and role correctly, the candidates will not properly understand your company. So they won't know if they're the best fit for the team. You cannot afford to hire a candidate who’s not a cultural fit, especially during a downturn, because it loses your team time, delaying potentially time-sensitive tasks.

A recruitment company can charge exorbitant placement fees-

And not provide value. Your startup can’t afford to lose money, especially with the current market trends and a tech recession that is projected to last throughout the first quarter of 2023.

There's the risk of intermediaries-

An agency may outsource your hiring needs to a third party who will only partially commit to your hiring needs.

How to Choose the Right Tech Recruitment Agency in Today’s Job Market

Here are the five steps to take when choosing the right staffing firm in today’s job market:

  1. Identify your company’s hiring needs- Be clear on your hiring needs so the agency knows what to look for. What type of position do you want to fill? Is it one position, a few, or many? Are you looking to fill a temporary or permanent role? Is it an entry-level or executive position? Is it a general or specialist role?

  1. Define your budget- Check the prices of the recruiter's services beforehand to see if you can afford them. If you are planning to hire nearshore, make sure to review the region’s salaries. We have an insightful 2022 LatAm Developer Compensation Report available for those numbers.        

  1. Choose a type of agency- Are you looking for a staffing agency to fill a temporary or contractual role? Or are you looking for a recruiting agency for a full-time hire? One solution will not fulfill all of your hiring goals, particularly during a recession. That’s why we recommend partnering with an agency that can provide both alternatives, like TECLA.     
      
  2. Treat and interview recruitment agencies like job applicants. Ask about their process, experience, clients they've worked with, and the recruitment duration.   

  3. Check to ensure the recruitment agency provides a free or guaranteed trial period.  The ideal candidate will fit with your company’s culture, team dynamics and daily task execution seamlessly. This can only be tested once the candidate is on the job, so you should always expect (and ask if it's not offered) a no-cost trial period.
Five steps to choose the right tech recruitment agency


Hire TECLA as Your Tech Recruitment Agency of Choice 

At a time when startups are forced to lower overhead costs, it's extremely important to choose your next partnerships wisely, starting with the right tech recruitment agency. TECLA has the skill set, experience, and resources to pitch your startup to top talent and successfully attract those candidates to your company at a fraction of the cost compared to U.S. and Canadian talent.

Get access to our strong network of 40,000+ nearshore vetted IT professionals and save time and money without compromising on quality. Reach TECLA today to connect with top on-demand LatAm talent.


FAQ About Choosing the Right Tech Recruitment Agency

Do Staffing Agencies Really Work?
Yes, hiring the right staffing agency can save your startup time and money by helping you source, vet, and hire the right talent faster than your internal HR. However, hiring an unprofessional agency can end up costing your startup more- a mistake you can’t afford to make during such a critical period.
What Is Nearshore Hiring?
This is when a company hires workers within the same continent and time zone. For example, a U.S.-based startup can hire top tech talent, i.e., software developers from Mexico, Argentina, and other LatAm countries. Contact TECLA today for more on the tech talent scene in LatAm.
Why Hire Tech Talent from Latin America?
There is a shortage of tech talent, including software developers, in the U.S. and Canada. But that’s not the case for LatAm, whose region’s tech talent is growing exponentially. There’s also a vast difference in salary expectations. The region has a significantly lower cost of living. And with a looming recession, this is a cost-effective solution for American startups. Also, LatAm is a cultural fit with North America and shares the same time zone as the U.S. and Canada.
How Do I Get Started with Hiring Tecla As My Tech Recruitment Agency?
You can book a call with TECLA to communicate your company's current hiring needs, values, culture, and more. Next, interview top LatAm developers within a few days and hire directly or use TECLA as an employer of record.
Abigail Houck

By 

Abigail Houck

Abigail is the Head of Operations @ TECLA. With more than ten years in the tech recruiting industry, she is especially focused on international and global talent acquisition.

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