Cost is a key consideration in choosing a recruitment partner, but so is understanding the quality of the hire. The wrong decision will wind up costing you more. It is therefore important to understand the true cost of a hire.
With the current state affairs, It’s important that you take the time and effort to hire the top talent who will add value to your company at an affordable cost. Calculating this cost will vary depending on the way you choose to approach it. The true cost is not just the fee payable to an external recruiter.
Some businesses choose to have their HR department be in control of recruiting/hiring. In this scenario there are a costs associated with it.
HR departments have a heavy workload as it is and the recruitment process demands a lot of invested time. Whether you use a contingency or retained recruiter the fee will set you back 15-30% of the salary, not to mention the rolling cost to the business, if the role takes time to recruit and you have recruitment re-runs.
- Hiring a new employee can cost you thousands of pounds.
- The cost of hiring is much more than the fee payable to an external recruitment firm
Be aware of hidden costs. This includes salaries of employees involved in the recruitment process, initial screening, interview, tests, assessment and offer management, communication with new hire, reference checks & security checks and onboarding.
Cost is always a consideration in choosing recruitment partner but shouldn’t be the only one. Understand what they do and assess the true cost per hire. If a recruitment firms charges 15% and its’ taken you three recruitment re-runs to find the right person, 1. What was the true cost of the hire? And 2. Would you have been better off choosing another firm?
Cost in an important consideration when deciding which recruitment partner to engage but not at the expense of quality; investing in your hiring process makes more sense than suffering the cost of a bad hire/hiring process.