How Much Does Your Recruitment Cost?
How well do you understand the cost of your recruitment? When we speak about recruitment cost, it is often confused with recruitment fee and spoken of as a % or a fixed sum. If you don’t understand the detail, you can’t control your cost. Let’s break it down.
If we re-engineer the cost model, we can spot the obvious additional costs.
How much did you pay the recruitment or internal team for your last hire?
How many hours of interviews did you conduct to make that hire?
What is the cost for the interviewer’s involvement? i.e., in consultancy terms, the cost of the lost billable hours.
How much time did you invest in screening the candidates? Again, equate the cost.
What were your recruitment overheads? Systems, advertising, personal/company branding.
Now you have your cost. How much beyond the initial % of fixed fee is it? I bet you’re surprised.
How can you make this more effective?
In the first instance, using a specialist is mandatory. Even volume exercises should be quality focussed. Why?
Reduction in screening profiles when working with a specialist partner.
Fewer interviews required for success. Think about those billables.
One process can often unearth multiple stars. You may not hire all of them, however the groundwork has been laid for the next time you hire.
Someone else is showcasing your company employment brand, which will lead to future direct applications. You’ve now saved a fee on a future hire.
However, you approach your recruitment, lean into the data, and adjust your process to maximise the efficiencies. Doing so will reduce your overall recruitment cost.