FAQ's

One21 Recruitment

Employer FAQs: Working with Recruitment Agencies in New Zealand

Below are some frequently asked questions (FAQs) that employers and businesses in New Zealand often search for. This is particularly useful for clients navigating when to use an agency, how to choose one, and what is considered best-practice hiring. Our answers reflect how One21 Recruitment works.

FREQUENTLY ASKED QUESTIONS

What exactly does a recruitment agency do?

A recruitment agency acts as an intermediary between the client and the candidate (Employer / Hiring Business and Employee / Job Seeker), helping companies find qualified candidates for job vacancies and matching job seekers with suitable roles. They advertise jobs, screen applicants, conduct interviews and checks, and facilitate salary negotiations. By leveraging their networks, industry knowledge, systems and resources, a good agency will simplify the hiring process for employers whilst providing access to job opportunities for candidates, making the process more efficient for both parties.

Benefits For Employers:

Streamlined Hiring: Agencies reduce the time and cost associated with recruitment by handling administrative tasks and initial candidate screening.
Access to Talent: They tap into a wider pool of candidates, including both active job seekers and ‘passive candidates’ who aren’t actively job searching but might be open to the right opportunity.
Expertise and Market Insights: Recruiters understand industry trends, salary benchmarks, and company culture to ensure high-quality and best-fit hires.
Reduced Risk: They conduct thorough background and reference checks, minimizing the risk of a bad hiring decision.

Benefits For Job Seekers:

Better Applications: Some Agencies will offer advice and feedback to help candidates put their best application forward for a role.
Access to Opportunities: They provide access to a range of jobs, including exclusive roles that may not be advertised elsewhere.
Streamlined Job Search: Candidates can save time by letting an agency match them with suitable jobs instead of searching and applying directly.
Free Service: Recruitment agencies are free for job seekers in New Zealand, as they are paid by the employer upon successful placement.

NOTE FOR EMPLOYERS:

Not all Recruitment agencies are alike – some are simply CV-Forwarders, whereas others like One21 Recruitment become your exclusive recruitment business partner and your internal ‘recruitment-arm’ with an external reach.

One21 manage the complete recruitment process on your behalf – from running a comprehensive job marketing campaign, information gathering and vetting, right through to onboarding the successful candidate.

2. How do recruitment agencies find candidates?

One21 Recruitment combines a mix of the following:

Job marketing across multiple platforms – not just relying on one advertisement.
Direct mail – sending out job notifications through candidate database searches.
Utilising industry networks and social media platforms for passive sourcing, shoulder-tapping and headhunting.

3. Why should businesses use a recruitment agency?

Agencies access more talent, move faster, reduce hiring risk, and provide specialist screening you may not have in-house.

One21 manages every stage of the recruitment process on your behalf – from job ads to final placement, and bring market insights, wider candidate access, technical know-how, structured processes, and can mitigate the risk of making a bad hire.

They solely focus on recruitment every day, and have access to more job sites and databases, use comprehensive applicant tracking systems and have systems and processes in place to screen, sort and shortlist.

They know the questions to ask to fill in the holes and eliminate the red-flags before you make a hiring decision…

4. Which industries benefit most from agencies?

All businesses can benefit from outsourcing their hiring needs, and industries like trades, professional services, engineering, construction, healthcare, manufacturing, IT, tech, and logistics often rely on agencies for access to specialised skills and talent.

Businesses find real value in working with agencies like One21 that know the market well and are adept at sourcing for skills shortages both locally and internationally.

5. What is the difference between a Contingency and a Retainer fee for recruitment?

There are two common recruitment fee models:

Contingency recruitment: Agency is paid only if a hire is made – this can fluctuate as it is a percentage calculated on the successful candidate’s final salary and package. If a candidate is negotiating up another $10K and the recruitment agency has Terms agreed at 15% that could mean the recruiter is earning an extra $1.5k. It could sway the recruiter to push more on behalf of the employee than keep things real for the employer.
Retained or fixed-fee: Agreed service fee – either a percentage or a set amount. Fixed-fee models offer more transparency and are often preferred by small businesses seeking predictable costs without percentage-based commissions that fluctuate with the final remuneration package. Often fixed fee recruiters get a retainer/deposit to get started, and they are working exclusively with the client as their sole recruiter marketing and filling the role. This is how One21 Recruitment works – although we do offer both options. We prefer to work with our clients to get the best results.

6. What is the average fee/dollar amount an employer would pay a recruitment agency to fill a job vacancy?

In New Zealand, the average fee an employer pays to a recruitment agency to fill a job vacancy varies based on the agency type, seniority of the role and salary package, and the industry, but here’s a general breakdown:

Agency Type	Typical Fee Structure	Average Cost (NZD)
Contingent Agency Commission	12%-20% of annual salary	$8,400-$14,000
Specialist/Niche Recruiter	18%-25% of annual salary	$15,000-$30,000
Executive Search	25%-33% of annual salary + retainer	$25,000-$60,000
Flat-Fee/Flexible Recruiter	Fixed price per placement	$5,500-$12,500

Contingent Agency Commission

Fee Structure:12%-20% of annual salary

Average Cost:$8,400-$14,000

Specialist/Niche Recruiter

Fee Structure:18%-25% of annual salary

Average Cost:$15,000-$30,000

Executive Search

Fee Structure:25%-33% of annual salary + retainer

Average Cost:$25,000-$60,000

Flat-Fee/Flexible Recruiter

Fee Structure:Fixed price per placement

Average Cost:$5,500-$12,500

One21’s fixed-fee model is the smart, low-risk middle ground between DIY and traditional contingency / commission-based recruitment, with prices starting as low as $3,500 for a complete recruitment process, which includes advertising the role across a mix of major NZ job boards Seek / TradeMe / JobSpace, and social media marketing on LinkedIn, Google, Facebook etc.

7. So, should You Pay for a Recruitment Agency or Do It Yourself?

Many small and medium-sized businesses in New Zealand recruit staff themselves, which can work out fine, especially for entry-level or low-risk roles. But when it doesn’t, the cost of a bad hire (or no hire at all) can be far greater than the cost of getting expert help upfront.

Let’s compare both sides:

DIY Recruitment – Pros & Cons

✅ Pros:

No recruitment fees
Only outlying costs are for job ads (average $500 plus per job board) – but don’t forget the cost of resources and manpower to your business
Full control over the hiring process
May be faster if a candidate is already known to you

❌ Cons:

Time-consuming: Writing ads, screening CVs, scheduling interviews, figuring out how to sign up and use online job sites
Limited reach: Ads alone may not attract the right people
Risk of bias or missing red flags
May not have expertise in screening, information gathering, shortlisting, and reference checking
No backup plan if the hire doesn’t work out

💡 Using a Recruitment Agency – Pros & Cons (based on using One21 Recruitment)

✅ Pros:

Saves you time and stress – well-constructed job ads, screening, shortlisting, and interviews are all handled by the agency.
Access to wider networks and passive candidates, industry contacts, and more advertising reach – a good agency will do the ‘door knocking’ for you.
Expertise in candidate vetting – we read between the lines, pick up on inconsistencies, and dig deeper into work history, motivations, and fit.
Mitigates hiring risk – especially in a tight market or high-turnover role.
Replacement guarantees (depending on your contract).

❌ Cons:

There is an agency fee to factor into the hiring budget
You may feel less in control of the process if you’re not used to outsourcing

8. What is the Cost of a Bad Hire?

Hiring the wrong person costs more than just salary. It can result in:

Lost productivity
Reputation damage with clients or your team
Increased turnover
HR, legal or compliance risks and associated costs
Wasted onboarding/training investment

Estimated cost of a bad hire is often cited as 30% of the employee’s annual salary.

9. What are reasonable timelines for making a Hire?

A recruitment process can take anything from a couple of days to weeks or even months, especially if screening large volumes of applicants, sourcing hard-to-fill talent, or conducting multiple interview rounds. Average time would be 2-4 weeks for selection and longer for complex roles.

A good recruitment agency will factor in what the client’s needs are, and aim to fill the role by a certain date. Where possible they will communicate this timeline to candidates and keep them updated and ‘warm’ – although there are many factors that can ‘blow out’ these timeframes.

One21 recommends getting in touch as soon as you identify a need to fill a job vacancy, so that you have as much time as possible to market the role and run a thorough recruiting process and factor in employees notice periods which can be anything from 4-12 weeks.

10. How can I ensure quality candidate screening?

By the time it comes to interviewing One21 have already gathered the preliminary information from each shortlisted candidate through our bespoke application questionnaires and candidate communications, so you can concentrate on honing in on the job specific details and ‘fit-factor’.

One21 recommends casual, yet well-structured Interviews and suggests using a mix of conversational and competency-based behavioural questions to get a better insight into how a candidate deals with real-life work situations. E.g.

Adaptability: “Tell me about a time you had to deal with a major change.”
Initiative: “Describe a time you improved a process.”
Cultural fit: “What environment do you thrive in?”
Behavioural: “Tell us about a time when you didn’t agree with your Manager, or had a conflict with a colleague”

One21 can give you a range of questions to ask and ensure the candidate is also well prepared – so both parties make the most of their interview time.

We can also sit-in on your interviewing panel as organiser and facilitator, ask the curly questions, take notes, gather and give constructive feedback, be your sounding board and help you make an informed decision.

We also take care of job offer negotiations – often the most critical part of the process where an employer can lose their preferred candidate if the ball gets dropped!

11. Are references still valuable?

Reference Checking is often considered an unnecessary formality and skipped over, but reference checking done properly can uncover any discrepancies and verify critical info.

Many employers treat them as a box-ticking exercise, but tailored reference checks can reveal strengths, weaknesses, trustworthiness, level of skills, performance consistency, and confirm a candidate’s claims.

Don’t cut corners – a good Recruiter like One21 will do their due diligence on a candidate before you make a job offer.

12. Are there risks to using agencies?

Some business owners feel recruiters add cost but little value. Common complaints:

Overcharging via percentage-based fees
Underwhelming job marketing, talent sourcing and screening
Lack of cultural understanding
Poor communication
Limited role-worthy candidates

The best results come from working with recruiters who deliver trust, transparency, and ongoing involvement – but it’s a too way street and the employer / business owner also needs to be trustworthy and transparent and work with their recruiters – not against them.

One21 recommend only working with one agency at a time, as they will invest more into the job marketing and recruitment process if they are exclusive and going to get paid. That way all internal, direct and external applicants will be put through the same hiring process for consistency and better results.

13. Why is One21 Is the Smarter way to Hire?

At One21, we work like an in-house recruitment partner, without the high fees of big agencies. You get:

Expert job marketing
Candidate sourcing beyond job ads
Thorough screening and reference checks
Honest advice, market insights, and flexibility
Fixed fees, transparent process, and real results.

14. Can you compare DIY Recruitment vs. using One21 Recruitment?

DIY vs. Outsourced Recruitment Comparison

DIY vs. Outsourced Recruitment

Compare the pros and cons of handling recruitment in-house versus using a specialized recruitment agency

DIY Recruitment (In-House)	One21 Recruitment (Outsourced)
✅ Lower upfront cost	✅ Fixed-fee, cost-effective solution – may save you money in the long run
✅ Full control of the process	✅ Support from an expert recruiter, collaboratively working with you
❌ Time-consuming - write ad, post, screen, shortlist, interview	✅ Done-for-you process, frees up your time
❌ Disjointed process - may not align with brand	✅ Professional process aligned with your company’s brand and reputation
❌ Limited reach - relies on job boards or word of mouth	✅ Wider reach – more job boards, social media, databases, passive candidates, networks
❌ May miss red flags or be swayed by emotion	✅ Trained eye - deep candidate screening and vetting – unbiased process
❌ No guarantee of hire or fit	✅ Hire replacement guarantee offered (T&Cs apply)
❌ Cost of a bad hire can exceed $20,000+	✅ Reduces risk of wrong hire by doing due diligence
❌ Often reactive - hire under pressure	✅ Strategic approach with timing and pipeline building
❌ May overlook soft skills or cultural fit	✅ Holistic approach - skills, attitude, and values alignment

DIY Recruitment (In-House)

✅ Lower upfront cost

✅ Full control of the process

❌ Time-consuming - write ad, post, screen, shortlist, interview

❌ Disjointed process - may not align with brand

❌ Limited reach - relies on job boards or word of mouth

❌ May miss red flags or be swayed by emotion

❌ No guarantee of hire or fit

❌ Cost of a bad hire can exceed $20,000+

❌ Often reactive - hire under pressure

❌ May overlook soft skills or cultural fit

One21 Recruitment (Outsourced)

✅ Fixed-fee, cost-effective solution – may save you money in the long run

✅ Support from an expert recruiter, collaboratively working with you

✅ Done-for-you process, frees up your time

✅ Professional process aligned with your company’s brand and reputation

✅ Wider reach – more job boards, social media, databases, passive candidates, networks

✅ Trained eye - deep candidate screening and vetting – unbiased process

✅ Hire replacement guarantee offered (T&Cs apply)

✅ Reduces risk of wrong hire by doing due diligence

✅ Strategic approach with timing and pipeline building

✅ Holistic approach - skills, attitude, and values alignment

15. How to choose a good Recruitment Partner – what do Employers look for?

Employer Recruitment Preferences

What employers look for in an ideal recruitment partnership

Employers Prefer…	Ideal Recruitment Solution
Local Industry Expertise	Recruiter who knows the job market
Transparent Pricing	Fixed-fee; no surprise commissions
One-on-One Support	Direct access to senior consultant
Active Candidate Engagement	Including headhunting and references
Structured Communication	Clear updates, timelines, candidate care
Cultural Fit Understanding	Recruiter conveys company values and expectations

Employer Preferences

Local Industry Expertise

Recruiter who knows the job market

Transparent Pricing

Fixed-fee; no surprise commissions

One-on-One Support

Direct access to senior consultant

Active Candidate Engagement

Including headhunting and references

Structured Communication

Clear updates, timelines, candidate care

Cultural Fit Understanding

Recruiter conveys company values and expectations

16. Why choose One21 as your recruitment business partner?

Ranked in the Top 10% of NZ Recruiters (Sourcr)
Local to Tauranga, but with a nationwide and international reach
Works across all roles and industries with a fixed-fee, transparent model
Deep Industry Knowledge
Access to Passive Talent
Only shortlists candidates who are screened thoroughly
Offers smart recruitment with structure and speed
Credibility and Risk Reduction

✅ Work with One21 Recruitment

We Connect Top Talent With Great Companies

Kirsty Morrison – your Recruitment Business Partner @ One21 Recruitment
📞 021 355 179
📩 kirsty@one21.co.nz
🌐 www.one21.co.nz

Fixed-Fees | Top 10% NZ Recruiter | Smart, Local, Done-for-You

RECRUITMENT – JOB SEARCH – CV WRITING – OUTPLACEMENT SUPPORT

Office

Tauranga, 3110
New Zealand

Contact Us

Email: kirsty@one21.co.nz
Mobile: 021 355 179