How much are your fees? It’s a question I am often asked, and rightly so, but the right question should be “what is the cost of recruitment?”
A recruiter’s fees are often the only tangible cost in a recruitment process, but it is usually only a small fraction of the overall cost to a business that companies are not necessarily aware of.
A number of studies have been carried out showing that the cost to a business can range from £5,000 to more than £50,000, depending on the impact of the position across the wider business, and that not being able to find the right people at the right time is costing UK business over £2 billion a year.
So where is all this additional cost coming from?
The biggest impact on a business is productivity. When someone leaves, it usually has a ripple effect across the company, and depending on how integral that person was, it can sometimes affect the business for months. By then splitting their responsibilities across the team productivity will drop and whilst the team may be able to carry this extra workload for a while at some point they will start to tire and the extra work will increase the risk of more team members leaving.
On top of this, you, as the leader, need to find a replacement. Writing or updating a job description, advertising, sorting through the applicants, 2-3 rounds of interview, salary negotiation and on boarding, as well as induction and training for the new team member. Resulting in a minimum 3 month impact on productivity on the team, 6 months for the manager and up to 12 months for the new hire, and this is assuming you are able to hire a replacement within a month of the incumbent resigning. If it takes longer the impact on the business and the cost of hire increases exponentially.
So how do you reduce the cost of recruitment? By working with a recruitment business that truly understands what it takes to hire based on values and culture rather than just skills and experience alone, significantly reducing the risk of hiring the wrong person saving you both time and money.