The Actual Cost of Recruitment: A Guide (2022)
When you're looking to fill a vacancy in your company, the cost of recruitment can seem like a lot. You have to factor in advertising costs, as well as the time and effort it takes to review resumes and interview candidates. But did you know that working with a recruitment agency can actually be cheaper than doing it all yourself? In this blog post, we'll take a look at the real cost of recruiting and why it's better to work with an agency.
The cost of recruiting can be broken down into two main categories: direct costs and indirect costs. Direct costs are the ones that you can easily quantify, like advertising and interviewing expenses. Indirect costs are harder to calculate, but they can include things like the opportunity cost of your time spent on the recruitment process.
When you work with a recruitment agency, the majority of the direct costs are covered by the agency itself. This includes advertising, resume screening, and candidate interviews. The only cost that you'll have to bear is the fee you pay to the agency, which is typically a percentage of the successful candidate's first-year salary or an hourly rate, which offers you more flexibility, no long-term contract, and no upfront payment.
Here's a quick breakdown of typical expenses when building out your own recruitment team:
HR team that handles searching and filtering candidate resumes
Hiring manager to interview candidates
Advertising and online job board costs
IT costs including tools
As for indirect costs, the biggest one is the opportunity cost of your time. By working with a recruitment agency, you can free up your time to focus on running your business and free up your employee's time to run other business operations. This means that you'll be able to generate revenue while the agency handles the recruitment process for you.
In conclusion, the actual cost of recruiting is lower than you might think. Working with a recruitment agency can save you money and time, making it the better option for businesses of all sizes.
If you're looking for a reliable and experienced recruitment agency to help fill your next vacancy, get in touch with us today! We'd be happy to discuss your needs and see how we can help.