The Real Cost of Recruitment and Retention

Like all things, there are pros and cons to recruitment agencies.  Auxato Director, Jonathan Johnson, covers some of the main points to consider before calling a recruitment agent.

Benefits of working with a recruiter

Saves you time: why spend your weeks trawling through CVs when you could be doing your day job?  The average job has over 50 applicants, you have to screen those and hope that the people you really like the look of actually get back to you – a surprising number of people that apply for jobs never answer their phones or respond to emails.  Having someone take that work off your hands could be invaluable to your productivity.

A specialist already knows everyone: if you go to a recruiter who specialises in a particular sector, the hard work is already done. Their years of work and experience will have built up a network of relevant people, giving you access to people who are not actively on the market, therefore won’t be applying to live adverts.

Market insight: if the recruiter has been networking specifically in one area, they will usually have a good grasp of what the market looks like, what your competitors are up to, and your organisation’s reputation.  This insight can be useful and is usually free of charge.

Saves costs on unsuccessful advertising campaigns: you don’t pay for a contingent recruiter up front; if they are unsuccessful with their advertising campaigns, it costs you nothing.

Reduces risk of drop-outs: candidates are more honest with a third party, whereas they often tell an interviewer what they want to hear.

Saves money in the long run if you work with a recruiter who understands your business:
employing the wrong person is expensive!    

Drawbacks of not using a recruiter: some tips and solutions

Cost: the number one complaint is that recruiters can be expensive. Make sure that you are including everything in your cost per hire calculations.

Direct advertising can be a great way to reinforce company branding but it is important to consider the cost and time spent creating material. You also need to ensure that you analyse the success rate from social media and job site postings.

Duplicate applications when using multiple recruiters: if a business uses too many, it can be hard to manage.

Time management: as in every industry, there are always inexperienced people with high targets to hit. Some jobs are more difficult and more expensive to fill. Here’s where working with a specialist for specific roles could be your best solution.

Work with us

Over the next few months, Joan Henshaw will be sharing a series of tips and techniques to help business owners and managers build their skills as recruiters.

If your company could benefit from developing in-house skills, contact Jonathan at Auxato to discuss short or long-term strategies.

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