recruiting firm costs

  • Recruiting is perhaps one of the oldest occupations since the dawn of civilization.   Today instead of recruiting for battle recruiters find talented people to fill the ranks of our corporate organizations revolving around a common objective or mission.   Thanks to modern technology resources for recruitment are vast and far reaching.  However, to that extent it also falls short on delivering top quality candidates.   There are literally thousands of avenues to search resumes and post a job to reach millions of job seekers.   The challenge then is weeding through a large stack of resumes to find a small handful of talent that is most qualified for the job.

    Here a few reasons why utilizing a recruiter to help with the hiring process is worth the cost.what does a recruiting firm cost

    1.        Time is money.   Recruiting is a time intensive task.   As mentioned previously there are hundreds to thousands of resumes to sort through to find what you are looking for.   Screening, qualifying and interviewing each prospective candidate is even more time consuming.   Leveraging the skills and experience of a good recruiter can help an employer save time and focus on other important tasks for the business.

    2.       Making a bad hire is expensive.  How costly? The U.S. Department of Labor currently estimates that the average cost of a bad hiring decision can equal 30% of the individual’s first-year potential earnings. That means a single bad hire with an annual income of $50,000 can equal a potential $15,000 loss for the employer.   Not to mention the negative effects this may cause on employee moral or negative reviews by unhappy ex-employees.  Having a recruiter assist in assessing candidates for an opening will greatly help in making a better hire.  A recruiting agency has a targeted network of contacts and resources that can provide great information and prequalified candidates to help you make a better hiring decision.  Also, fees for a recruitment agency on average are far less than the cost of a bad hire.
     cost of a recruiter

    3.       A more pleasant hiring experience.   In general a great recruiter can have a big impact on the quality of candidates and the experience they have throughout the interview process.  A recruiter is the key point of contact between the company and the candidate.   The critical part of this role is to provide clear guidance and feedback regarding the hiring process.  Quite often candidates that go through an interview process with a company don’t get a call back or any further feedback with regard as to why they are not being considered.   Most candidates are receptive to any feedback that might help them improve their interviewing skills and makes the employer more sincere and professional.   Furthermore, a recruiter inadvertently provides great a public relations service as they are networking with good candidates and telling them how great it is to work for your company.  The word can travel around quickly.

    4.       Specialized recruiters have insight and industry experience.   Many recruiting agencies typically focus on certain industries and talent.   Recruiting firms work with a wide array of companies that vary in size and resources.   Through this third party relationship you can gain insightful intelligence on what works for other companies in your industry.   Even if some of the information may be confidential it can often be disseminated through the body of work provided by the recruiter or agency.

    5.       Attracting passive candidates.   Any company with enough money to spend on a resume search or job posting provided by a job board can get a few resumes to start with. (see also reason #1)  This is a limited and finite resource that doesn’t effectively engage all of the best talent.   While you can find qualified talent that is looking for a job, you are not engaging even better talent that is currently employed and not actively looking for a job.   Even happily employed candidates are open to hearing about a new opportunity and a good recruiter can ask the right questions to find what might encourage them to pursue a job at another company.  

    6.       The legal stuff.   There are many employment laws that every employer must follow.   Do you know what ADA, FLSA, or OFCCP stands for?  A well trained recruiter will understand and be up to date with the current employment laws.   This can help avoid unwanted conflicts with regards to interviewing and hiring new employees.

    7.       Two heads or better than one.  Even large companies with well-resourced recruiting departments still need help.  That’s simply how complicated the recruiting process is too many jobs to fill not enough time.   I often hear from clients that say we already have access to job boards such as Monster or Dice.   As an experiment we assigned the same job to two recruiters with access to the same resources.    Each had their own unique approach to the search.   While there were instances of some overlapping candidate results each recruiter found good candidates the other did not.  That is because everyone thinks differently and there is a lot of data out there.   Sorting through massive databases of resumes takes time and skill that even one skilled recruiter would be challenged to master.

    8.       Competitive advantage.    Timing is everything when attracting the right talent.   There are many companies competing for the same talent at the same time.   It is critical to swiftly engage the talented people you are looking for and start the hiring process before the widow of opportunity closes.  

    9.       Reading between the lines.   Recruiters recruit people, they have families and lives to live.   Everyone has unique career goals, skill levels and personal objectives that may or may not sync up with what a company is currently offering or doing.  It takes a trained recruitment professional to asses a candidate’s background outside the resume to see if they are truly a fit for the job currently being offered.

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