Is a Recruiter a waste of money?
Did you know that recruiters will charge you anywhere between 15% and 22% of the value of a new employee’s annual salary to recruit them for you, sometimes even more.
That means if you hire a new employee for $60,000, and get a great deal from a recruiter so you only pay 15%, that means it will cost your business $9000!
What do you get for $9000? Well, recruiters will tell you that they will expertly write an ad for you, they will save you the time and effort of reading CV’s and interviewing people and they know how to expertly question and assess job applicants.
Sometimes this might all be true, but make no mistake, many recruitment consultants are sales people, living on commission and focused on placing enough candidates to meet the targets their employer has set for them. This means sometimes the right candidate is the candidate they can sell to you. It might almost be like this exchange from 'The Simpsons', when Marge was working for Lionel Hutz's Real Estate business:
I've been getting a lot of calls about you, Marge. People just love your no-pressure approach.
Well, you know what we say: the right house for the right person.
I'm going to let you in on a little secret. The right house is the house that's for sale. And the right person is anyone.”
Some recruiters are amazing, but many possess no special knowledge of how to write an ad or interview an applicant. They can’t do anything that you can't do for yourself. Often you can actually do a better job because you know your business better than anyone, and ultimately you are going to have to interview the possible candidate and make a hiring decision yourself anyway. So that leaves you to decide if it is worth $9000 or more for someone else to read through CV’s on your behalf. In many businesses, that $9000 can be better spent!
All you need is a solid recruitment process that is right for your business and a little bit of confidence. For a fraction of the cost of a single hire, we can help you design the recruitment process you need and put it into action, saving you thousands and thousands of dollars every year.
To have a free and no obligation consultation to find out how you could save a fortune in recruitment costs, enter some basic details below: