Employees are the single most important resource in your business and losing one can be disruptive to your day-to-day operations. The knock-on effects can include slower production, lower output and ultimately less revenue, and this is before you even consider the time and resource spent on finding a replacement, as well as some inevitable training.
It’s no secret that recruitment businesses are often thought of as an expensive option in comparison to recruiting directly, but there are a number of things to consider when coming to this conclusion. This blog takes a look at the real cost of recruitment, and how outsourcing could actually save your business money.
The cost of recruitment when direct hiring
Advertising – a single posting on one of the major job boards costs an average of £250. For maximum exposure your vacancy should be visible in as many places as possible, which would cost your business £1,000’s in job board fees. Your job would be advertised on average for 30 days and if you didn’t fill the role in that time, further costs would incur.
Screening – if your adverts are successful, there’s then significant time spent filtering through applications and shortlisting the best candidates. Who in your business would be responsible for this task and how would their primary role and outputs be affected? What impact would this have on your business? Do you have someone with the requisite skills to do this or would you need to train somebody?
Bad hires – arguably the biggest cost of recruitment is how much your business could spend replacing a bad hire. According to REC, 85% of HR decision-makers admit that their organisation has made a bad hire – at mid-management level, this could cost a business over £100,000 in wasted training and lost productivity.
The cost of recruitment when outsourcing
Fees – The average recruitment fee is 15% to 25% of the final remuneration offered to your new employee and so can vary depending on the role you’re advertising. For the purpose of this blog, we will consider the cost of recruiting a Maintenance Engineer at the average salary of £32,500 with a recruitment fee of 17.5% – at these terms, your hire would cost £5,687.
Talent pool and passive candidates – For your £5,687, you’re getting access to a much wider pool of talent than if you were recruiting directly. In fact, it is the network of people you are really paying for. Did you know that recruiters might register and keep in touch with up to 50 people per week who are geographically, and skillset matched to their sector? Only 30% of candidates are actively job-seeking, and you wouldn’t be able to tap into the other 70% without the help of a recruitment business that hold many of these in their database or network and have extensive experience in dealing with passive candidates.
Guarantee and reduced risk – As mentioned previously, the cost of a bad hire is substantial and employing the help of an engineering recruitment business doesn’t always completely remove this risk. However, within the fee you’ll often be covered by a guarantee that offers a replacement at either no cost or a reduced cost dependant on the time period… in fact, we’re so confident in our service that we offer a guarantee for 2 years – read about it here.
Time-saving – When working with an engineering recruiter, you would only need to set time aside for initial briefing and interviewing meaning that there’s little to no disruption to your business.
Ultimately, it’s very likely that outsourcing your recruitment needs would actually save your business both time and money. The average 15% to 25% fee means that your vacancy reaches a significantly larger audience and the entire sourcing and screening process is done on your behalf, so that you can concentrate on business as usual.
The added value of hiring the right person
There’s a lot more than just financial cost to consider when it comes to recruitment. Yes, we believe that outsourcing ultimately saves businesses money, but what else does it provide?
Recruiters have internal databases and exclusive networks that aren’t available elsewhere and the main advantage to outsourcing is the ability to find the best candidate in the entire marketplace, instead of just the best candidate in your limited talent pool.
The outsourced candidate may have stronger contacts and connections, they may have better budget control or be a more talented sales person, all of which has a direct effect on business performance. Just imagine what it would be like to have a business full of your most effective people instead of the second or third best performers?
How ATA Recruitment can help
The engineering skills shortage means that sourcing and recruiting high-quality engineers is harder than ever and employing the help of an experienced engineering recruitment business gives you an advantage in a very competitive market.
The ATA Recruitment internal database includes over 40,000 relevant and engaged engineers not available on job boards and on average we send meticulously matched CV’s to our clients within 5 days of a vacancy being raised. ATA find out more than just candidates job history – we identify goals and motivations to ensure a complete match with the values of our client’s businesses.
We’re so confident in our recruitment services that our market-leading guarantee covers all full fee placements for 2 years, substantially longer than any of our competitors. Contact us to discuss your requirements and how ATA Recruitment can help using the button below.