Where Companies Look for New Workers

Questions you may have on this subject are:

• What are the methods used by companies to find employees?
• How do most people search?
• What is the best thing to do?

This lesson will answer those questions on getting hired. There is a mini-quiz at the end of the lesson.

Sequence used by companies

Companies start with the easiest and most reliable sources. Then the move to more difficult, expensive and less reliable methods. The sequence is:

1. Hire from within
2. Hire through a known source
3. Use an agency
4. Hire through ads and postings

The following explains those methods

1. Hire from within

The first thing a company does to fill a vacant position is to try to hire from within. They will seek to transfer or promote an existing employee. Sometimes they may hire or reassign a temporary or contract worker who is currently on assignment at the company. The reason to hire from within is that the person is a known quantity, knows the work and people, and is familiar with the corporate culture.

2. Hire through a known source

If the company cannot find a worker from within, they will seek someone through a referral from a partner company, former employee, or respected worker. Sometimes the candidate is a person the manager has already met and likes personally. Occasionally, a highly qualified candidate with a proven track record and portfolio of prior work may contact the manager and arrange an interview. The advantage to hiring a person through a referral or with a proven record is that it is the next best thing to being a known quantity.

3. Use an agency

If the company cannot hire from within or through referrals, they may use the services of an agency. For higher level jobs, they will use a search firm, contract agency or employment broker to recruit and screen outstanding candidates. For lower level jobs, they will review resumes submitted by employment agencies. If they know the agency, they can assume some filtering is done before the applicant material is sent to them.

4. Hire through ads and postings

If the company cannot find a suitable candidate from within, referrals, or agencies, they will purchase classified ads and/or post jobs on the Internet. Since they often will then receive hundreds of responses, they usually use their personnel department to filter out most of the resumes.

Many of the people responding are not qualified. Also, the company sometimes assumes that these people will settle for lower pay, especially since so many have responded. It is a time-consuming process for the employer, so they would prefer to use the previous methods if at all possible.

Methods used by job hunters

Most job hunters scour the classifieds and Internet job listings, looking for places to apply. They often send our numerous resumes, getting only few replies and even fewer interviews. In general, answering ads is a difficult route to follow. But that is not to say people do not get jobs from answering ads.

Using an agency has the advantage that many specialize and often have an inside track on what is available. But in some cases, agencies will not use proper discrimination in sending out resumes.

About 80% of jobs are filled through other means than answering ads or using an agency. You can find which companies need your services by research and by networking or talking to people. If you can approach a company through a referral or with material to show you can satisfy their specific needs before they have to start placing ads, you have a much better chance at getting hired.

In conclusion

Companies prefer to hire from within or hire known quantities. They use agencies, newspaper ads, and Internet postings as a necessary evil. On the other hand, job seekers usually start looking through the want ads. It would be better for them to seek referrals or approach companies with a proof of their track record.

Be persistent in your efforts to get a job

Mini-quiz to check your understanding

1. Why would a manager prefer to hire someone he knows?

2. Why do companies dislike placing newspaper want ads?

3. How can a job hunter get an inside track on jobs?

If you got all three correct, you are on your way to becoming a champion in advancing in your career. If you had problems, you had better look over the material again.

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