Recruiting | 5Min Read

What are the Recruitment Challenges Faced by Recruitment Agencies?

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Recruitment agencies face various challenges while conducting the hiring process. Do you want to know what those recruitment challenges are? And the best practice to overcome recruitment problems. Then explore this blog, it will provide you with deep knowledge about recruitment challenges faced by recruitment agencies.

Finding and holding the right talent for the business is a valuable asset for them. However, finding and adding the qualified and the right candidates to the right organization is a challenging task for recruitment agencies- even though recruitment agencies are small or big.

Attracting a maximum candidate through digital advertising and building a large talent pool and then conducting the overall hiring process is a hassle for every recruitment agency.

But why? Why is the hiring process that much harder? Why does it take too much time? Why is finding good employees a difficult task? It is because of various problems, and challenges recruitment agencies go through during the period of hire.

In this article, we have mentioned some recruitment challenges and serve as the best practice to overcome those challenges.

Recruitment Challenges Faced by Recruitment Agencies

For recruitment agencies, problems constantly arise without modern advancements. The market is always changing with technology's fast-paced growth, and so are the candidates. They are online often and will be more likely to apply if it is an online application. These are the problems commonly associated with traditional recruitment agencies.

Applicant hiring speed

In-person notetaking and lengthy application processes are what current recruitment agencies are going through when, in reality, there are other options available. Transferring paper from hand to hand will always be slower and bulkier than having it automated. It consumes time, energy, and money. When other agencies are deciding to go with automated recruitment processes, they will start to outpace everyone else still being anchored down with overdue ways.

This is because when candidates apply for jobs, the job that gives the candidate the quickest response will most likely be the first to hire that candidate. The other business is then left with wasted time, energy, and money. With applicant tracking, you can quickly stay organized and keep up with the most important candidates only, all through automation.


Interview management allows you to view dates, reminders, and priorities all in a single, simple calendar. This lets you stay automatically organized and save you less time.

Automation completes the extra step of going through all the potential candidates. Application tracking chooses the best ones based on your interview process and sends them forward.

Hiring manager invest in recruiting software to speed up the process

42% of hiring managers are investing in recruiting software to speed up the hiring process. (Source)

Attracting the candidate

This is the very first step to master, and without it, your business will fall behind the current trends and get left behind. Finding the candidate that fits your business can be difficult to do, especially when you can't reach their interests effectively or filter out the unqualified ones.

76% of hiring decision-makers say attracting quality candidates is their #1 challenge and 88% agree that an informed candidate is a quality candidate. (Source)


Just going through the mass of physical files makes it almost impossible to find the one candidate you are looking for. With applicant tracking tools, you can swiftly go through the candidates with advanced search options so you can locate the characteristics you want easily.

Channels people use for finding a job

There are customizable questions, automated screening, and automatic rejection emails so you have targeted applicants and quick feedback. You can fully customize your prescreens and questionnaires so have control over the immediate requirements, which will drastically narrow down your applicants right away to those qualified.


When handling physical material, it can often get lost or misplaced. When using paper, you need to file each paper accordingly, and that often can be a whole job in itself. This can bog down the workplace. This is a key problem that many of the agencies face, and it can be solved with the amazing visual pipeline.


The modern and navigatable design of the recruitment software allows beginners to go through the stages of the application process; it makes the process easy, as well as organizing the applicants.

You can clearly see each stage your candidates are in and can send them to your client instantly. Verifying each application is done automatically, instead of blindly accepting applications. All of these features associated with the visual pipeline will keep you organized and improve your workflow.

Not making most of the data

Recruitment agencies have a profession where they have built a pool of data. Data pool of active and passive candidates. From this huge talent pool, they find and make the best match for the job with the purpose of talent acquisition

But it's not easy for recruitment agencies to make enough data. Thus, it is one of the recruitment challenges for recruitment agencies.

Making the best match of candidates and jobs is a crucial part of hiring. This will help agencies to avoid bad hires and serve qualified talent to the companies. Recruitment agencies supply the workforce to a variety of industries like the healthcare sector, tech sector, education sector and so on. 

Different sectors have different types of demand for candidates. And, making diversity data is quite challenging for recruitment agencies.


Recruitment agencies can overcome this recruitment challenge effortless just by adopting online recruitment software. Recruiting software that maintains the track of current and previous candidates data into a database. Moreover, split the data along with categories. The talent pool is where all the existing candidate's data is saved.

Ensure about good candidate experience

According to the survey, 60 per cent go through the bad experience from which 72 per cent of candidates share with their peers about the bad candidate experience.

That's why serving a good experience to the candidate is a significant component of hiring and becomes one of the recruitment challenges. Continuous engagement with candidates from the beginning to the ending of the hiring process: is a struggle. 

Candidate experience statistics

Treating candidates well at each iteration of recruitment is a longer and deeper process. Candidates who are satisfied with their candidate experiences are 38% more likely to accept a job offer. (Source)

Good candidate experience provides many benefits like high retention rate, more productive employees and more engaged employees.


Find out first about your existing candidate experience. Rate it and take the path of improvement. Small things can make a big difference. By adopting an applicant tracking system recruitment agencies can make the hiring process smoother for candidates. 

ATS provides a candidate self-service portal where candidates can fill their application and can schedule interviews according to their convenience. Many other features like automatic emails, offer letters, joining notification mail create the effective candidate experience.

Reaching to passive candidates

The current unemployment rate is so low. According to the survey, an estimated 30% of the workforce is only actively looking for a new opportunity. In the year 2016, a whopping 74% workforce was open for the job.

Thus, every industry is giving worth to passive candidates. Consequently, according to the business's demand, recruitment agencies have to reach out to passive candidates. And it is a challenging task for them. 

It is a tough task because as per the definition, they are the candidates who are not looking for any job opportunity. Moreover, working for any other company. This means they are not present at any job board site or watching any job advertisement. Hence, reaching to the passive candidates is one of the recruitment challenges for the recruitment agencies.


To reach the passive candidate, recruitment agencies have to leverage their network.

By carrying out the employee referral program and by attending other programs organized by other recruiters and agencies. Expand and enlarge your network size for reaching the passive candidates. 

Employee referral program

This will help you to know about the candidate before approaching them. This will help you to know about the candidate before approaching them. Companies can expand their talent pool by 10x by recruiting through their employees' networks. (Source)

Final Words for Recruitment Challenges Faced by Recruitment Agencies

Every recruitment agency faces these or might be many other recruitment challenges while setting up the hiring process. And they are struggling while overcome these recruitment challenges. The overall solution to recruitment challenges is Applicant Tracking System. 

iSmartRecruit is one of the best recruiting software. And serve all the required features to avoid recruitment challenges. Thus, eliminate the gaps in recruiting process, build a strong talent pool and hire the top talent faster with the iSmartRecruit.

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