Cost to hire Deeper Insight, Better Hiring
Compare the cost and impact of recruiting internally or using the resources of a recruitment company. £8,000! The recruitment consultancy you spoke to want £8,000 for your next hire, sounds extortionate no? Well, not exactly, we think it’s good value and here is why... Internal Recruitment
Advertising £’s
Reviewing Applications
Job Boards ... Monster, Total Jobs plus a specialist boards eg. Supply Chain Online cost approx £400 each for 2 weeks. 3 job boards 8 weeks (standard) advertising time = circa £4,800
CV reviews... Most well written job adverts will receive many applications and you obviously can’t see everyone but equally you need to check everyone for the diamond in the rough.
Organising
Interviewing
Once the decision is made who to bring for interview there is the process of calling emailing and planning the for the next step.
There is a huge amount of time for all stake holders involved with interviewing which can involve travel and all the extra costs.
Once stage 1 interviews are omplete and you have narrowed the field the next steps can be implemented - testing - second stage etc.
Most companies have some form of testing to evaluate if the candidate would be able to do the job role required to the standard expected.
Psychometric testing & personality profiling are common place in most hiring processes and come at a cost but also provide good benefits in the long run.
Once you have done all the stages you require for interviews, testing etc. you can then move to offer.
Additional standard recruiting costs: • HR / Internal Recruiters salaries – Average £35,000 pa. • Technology: ATS systems, video interviewing tools, psychometric testing & personality profiling: circa £10,000 pa. • LinkedIn Recruiter License £6,500 pa. ( Assuming 10 hires pa. makes all cost above divisible by 10 ) • Interviewing & screening costs: Line Manager’s cost for 2 stage process, plus travel: x 4hrs per candidate per stage x 5 days = £1000
£
Employer Branding – including attending events, creating materials (company videos etc, social media) Graduate Fairs, partnerships with universities & institutions averages
£15,000 according to a recent industry survey.
Cost to hire Lets do the math... If we add up the standard costs for each vacancy using the numbers above. To internally recruit: Job board costs per role = £4,800 (on average) + internal staff costs £6,650 (per employee hired) + managers time used in work hours £1000 (for interview costs)
Total = £12,450 Verses the price of recruitment
£8,000
20% of the role’s £40,000 salary, recruitment fee = £8,000. On a retained basis the recruiter keeps going until they find the perfect candidate.
Price of recruitment: £8,000
Doesn’t sound expensive now does it? only 2/3 of the price & a lot less hassle
Most recruiters offer an 8-week rebate period so if their candidate leaves within that time you will find a replacement for free.
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