11/03/2015The real cost of Recruitment
There are lots of companies that have preconceived ideas that using a recruitment agency is an expensive way of recruiting.
When in fact there are lots of hidden costs involved in recruitment and the true cost of "doing it yourself" can be quite expensive.
Underinvestment in technology or machinery would be seen as poor commercial decisions, so why not invest in the recruitment and the recruitment process?
When recruiting you will have to advertise the position, this could be within a newspaper, or online. It is not just the cost of the advert you have to consider. Research shows that more than 50% recruitment costs are indirect costs. The most obvious aspects of this is your time.
As well as taking time out the put the job description together, the advert or uploading it online, you will have to take time out plough through all the CV's that you get in response to it. If you have 75 CV's in response to a job advert and spend on average five mins looking at each CV its easy to see where the indirect costs start to add up.
Following this you will then have to start to arrange interviews, and send unsuccessful letters out to candidates. On average it is said a hiring manager conducts 10 interviews per job, this may not seem a lot but that soon adds up when you add up the lost earnings from time taken out from their "day job".
According to the most recent studies the average cost of filling a vacancy is £5K per employee, this cost increases depending on the level of the role.
More Hidden Costs
Assuming you find the right candidate for the job first time round, if not you will have to start the process all over again. Getting the right candidate is important for the morale of the existing team. Getting the right fit is crucial to how it will effect the rest of the company and if you get this wrong it can do long term damage.
Recruitment agencies can help eliminate the "poor hiring" decisions made as we are able to find the best candidate for the position, finding people that can add value to our clients business.
A Sound Investment
At Higgins Recruitment we take the time to find out and understand the company cultures, environment, needs, skills, and personality attributes of each candidate so that we can ensure they fit the criteria.
Whether you have or haven't used a recruitment agency before see how we can really help save you precious time and money.
Remember if cost is an issue in terms of either internal time or recruitment fees, its worth remembering the old housewives tale "buy cheap- buy twice".
Caroline Giles- Higgins Recruitment