The Financial Quandary of Recruitment Fees
In the world of small businesses, the refrain “Recruiters are too expensive!” is all too common. Picture this: you’re hiring for a $100,000 position. With a typical 30% recruiter’s fee, you’re investing $30,000. In a tight-budget environment, that’s a substantial investment.
Is there a more financially savvy approach? The TL/DR answer is yes. But it’s important to evaluate the often “hidden” costs of recruiting and hiring.
The Real Cost of a Mis-Hire: More Than Just Money
First, it’s crucial to look beyond the immediate cost. Studies, including a recent one by the U.S. Department of Labor, estimate that a bad hire can cost up to 30% of the employee’s first-year earnings. For a $100,000 position, that’s a staggering $30,000 lost. Add to this the intangible costs: lowered team morale, lost productivity, and the potential tarnishing of your brand.
In-House Recruitment: A Resource-Intensive Alternative
Moving recruitment in-house might seem like a cost-saving measure. But consider the resources needed: time for sorting applications, expertise in screening, and the know-how to navigate the nuances of a perfect hire. For a lean team at a company where everyone is already wearing multiple hats, this could mean diverting precious resources from core business activities. It also increases the odds of a mis-hire, delays in the hiring process, and missing out on great people.
AI in Recruitment: A Helping Hand, Not a Savior
AI tools offer a glimmer of hope, efficiently handling the initial stages of screening and ranking people on paper. But they fall short in assessing cultural fit and understanding the unique needs of a niche industry like unmanned systems and robotics. The human element remains irreplaceable.
The Current Labor Shortage: A Compounding Factor
Today’s hiring landscape is marked by a notable labor shortage, particularly in specialized fields like ours. This makes the hiring process even more challenging, increasing the value of a precise and effective recruitment strategy.
Employer Branding: A Magnet for Talent
Today, more than any other time in my decades-long recruiting career, it’s critical to shift focus to becoming a talent magnet. A compelling employer brand is a powerful tool to attract top people organically, reducing dependency on external recruiters.
Harnessing the Power of Referrals
Referrals can be a secret weapon. They are cost-effective and bring in candidates who are often a better cultural fit and come with a built-in level of trust. It’s about leveraging your existing network to find those hidden gems.
We may be biased, but we know a great recruiting partner is an investment that will pay dividends. However, we also believe that there is a better way than to pay recruiters over and over again for every person you need to hire. We’ll empower you to be successful through our strategic hiring and retention services including tailored recruitment strategies, expansion of your recruiting capacity, building in-house capabilities, and customized support. Let’s talk to see how we can support your growth and stretch your recruiting budget.
