Business is all about profit. As a business, Sharp Decisions understands the need to make cost effective decisions. So, when a hiring manager is hesitant—or downright adverse—about hiring a recruiting company because of the price, we understand. But, we’d also like to state our case, which is this: despite the price, recruiting companies are, in the long run, an economical solution to hiring.
When making decisions, I find pro/con lists helpful. Grab a pen and a sheet of paper—or your colleague’s arm—and let’s get started.
- Recruiting companies are expensive.
Recruiting companies are either compensated with a percentage of the candidate’s salary or with a flat rate. Regardless, all fees will be negotiated beforehand, so no surprise costs emerge later.
On the flip side, most recruitment firms only charge if the candidate they submit is hired.
Even without outsourcing recruitment services, cost of turnover is generally about 250% of the leaving employee’s salary. This figure can be higher or lower depending on the seniority level and degree of specialty of the position.
Sometimes—i.e. most of the time—finding an employee with the right personality and skill set takes time. We’re talking months. The cost of turnover does not consider the Cost of Vacancy, which increases as time passes. A vacancy may immediately reflect a decrease in spending because that salary is no longer being paid. However, the vacancy will definitely cause a decrease in performance, which triggers a decrease in revenue.
Hiring is expensive period—whether you’re the one recruiting or you’re hiring someone else. The key is to complete the hire as quickly as possible to minimize loss of income.
2. The hiring manager loses control of the hiring process when turning the recruitment process over to the recruiter.
This is simply a misconception. The hiring manager retains full control of the hiring process; he/she simple doesn’t have to do the grunt work. The client provides recruiters with a list of the qualities they want in a new employee, the recruiters find those candidates, and the client chooses the best candidate.
(Feel free to add other cons, but I’m moving on to the pros before I lose your attention.)
- Recruiting companies are specialists and, like any true specialist, have perfected the recruitment process, making searches more accurate.
- Because processes are streamlined and because all of a recruiter’s time is devoted to finding candidates, recruiting firms find them faster. In fact, Sharp Decisions is proactive and has a database of great candidates at our fingertips, ripe for the picking.
- Smart job hunters are increasingly seeking out recruiting companies. They know that recruiting companies send resumes directly to the client, so their resume won’t be lost in the masses. Predators pursue their prey—they don’t hang around the dried up waterhole waiting for antelope to show. Likewise, shrewd hiring managers track bright candidates, in this case, to recruiting agencies.
BOTTOM-LINE (for those only reading the bold print)
At first glance, hiring a recruiting company seems less cost effective than simply hiring an employee yourself, but when cost of vacancy, time, and effort are equated, it actually turns out to be a profitable hiring solution. And, because the client only pays if he/she decides to hire the candidate, no risk is involved.
At Sharp Decisions, we have 23 years of success in recruiting and consulting under our belt. Our recruiting specialists are great at their jobs and diligent in their search. Thus, they repeatedly find top-notch candidates quickly. Contact us. Let us find the perfect candidate for you. It’s what we do best. What do you have to lose, besides needles stress and frustration?
As always, Sharp Decisions wants to know your thoughts, questions, and concerns, so send them to email@example.com. We’ll do our best to answer them accurately and quickly.