One of the most frequently asked questions we get asked is why we charge so much for our service, and if the benefits of our approach to recruitment can really justify such a high price tag?
In short, the answer is yes! But, for the more curious business owner, allow us to put it into perspective for you. Imagine, after years of hard work and personal sacrifice your business is booming and you now find yourself in the precarious situation of needing more staff to keep up with the demand placed on your expanding operations.
In this situation, you have two clear choices. You can either outsource all your recruitment efforts to an external agency such as ourselves, or, manage all your hiring responsibilities in house.
For many, the latter is the more appealing option, due to the apparent short-term monetary savings. However, the simple truth of the matter is that many business owners underestimate the true cost of the recruitment process by around 90-95% (Quarsh 2019) which if not appropriately budgeted for can result in a financial disaster!
This is because the recruitment process can often be a lengthy and drawn our process that requires a multitude of checks and procedures to be adhered to for it to be a success. For example, here at Tri Ltd, we will typically complete the following when recruiting for a client:
1. New client visit
2. Terms of Business agreed
3. Job description and advertising
4. Resource & shortlist candidates
5. Pre-screen and registration
6. Submit CV’s
7. Interviews and feedback
On average, we pride ourselves on completing this process within 2-6 weeks dependent upon the client’s needs, whereas independent businesses who strive to meet their recruitment needs internally find themselves taking anywhere from 12-16 weeks to successfully fill a vacancy! Furthermore, over 70% of all “in house recruitment solutions” fail to meet even 90% of their recruitment needs, due in part to the lack of extensive databases and wider industry contacts that an external agency such as ourselves possess (Quarsh 2018) and the fact that a shocking 50% of candidates misrepresent themselves on their CV, whilst a further 30% tell blatant lies in their resumes (Business2BusinessCommunity 2019).
For professional recruiters such as ourselves, we have the knowledge and experience necessary to identify when someone is being disingenuous, but, for inexperienced recruiters it can be difficult to tune in on this, and has the potential to result in what we refer to as a ‘bad hire’ which comes accompanied with a variety of issues including decreased workplace productivity, reduced service quality, dampened workforce morale, reputational damage, and, of course, a significant financial cost. To better put this into perspective, a recent study conducted by the REC found that the financial cost of making a ‘bad hire’ for an individual on a £28,000 salary could exceed a total of £130,000!! (REC 2019).
Hopefully this article has better helped to demonstrate just how involved the recruitment process is, and, outline that the true cost of in-house recruitment is not limited to simply how much you pay for your recruiters and ads, but the multitude of hidden costs associated with unsuccessful hires, and the accompanied reduction workplace efficiency and organisational performance that will impact your overall profitability.
So, how does that recruitment fee of 15-30% of salary sound now?