By Snober Bains
A simple question with a not so simple answer (cue groan from audience). My answer is, “It depends”!
Unfortunately, not all firms are made equal, and, therefore, not all recruiting firms charge a similar cost for what might appear to be a similar service, which makes comparison between firms not an Apples-to-Apples proposition.
Studies have looked at the cost of hiring a new employee, and some estimate the cost of a New Hire to exceed $40,000 – although this cost includes training and lost productivity of trainers, much of this cost is the recruitment process! Starting with the Hiring Managers determining the roles & responsibilities of the role they are looking to fill, the days required to advertise to a public forum, followed by screening, interviewing, re-interviewing, and referencing of the short-listed candidates, there is typically a huge time commitment required from both HR and the Hiring Manager to find the right fit.
Although some would argue that Recruitment & Hiring is a normal business activity and an expected part of overhead costs, consider the overall cost of the above activities for the selected candidate to reject the role at the end of the process, or the acceptance by a candidate who is ultimately not the right fit?! Let’s call it for what it is, everyone is on their best behavior when first dating, but when things get serious and a proposal is on the table (an offer!), real motivations, fears and concerns come to the surface. We can’t count the number of clients that come to us with recruitment fatigue where after months of searching and getting to the end of this process, they still haven’t found the right person for their role. When you think about it, services like Match.com and E-Harmony use similar principles as Recruitment Agencies – gather intel on both candidate and an organization’s opportunities, short-list based on the criteria set for by both client and candidate, align on long term aspirations, and, last but most important, find commonality in values. As recruiters, we’re just trying to find the special person that will be able to do the job right: ready, aim, fire…cupid’s recruiting bow!
So, what are you willing to spend for the perfect match for your company? Alternatively, think about your opportunity cost of NOT finding the perfect Match.
When a Recruitment Consultant loves what they do and do it well, they have the answers to the difficult question, “who should I hire?” Recruiters are always creating and maintaining active and dynamic pipelines, they are acutely aware of candidate goals and motivations for searching, including those who are passive in their search. Plus, Recruitment Consultants go beyond the tangible skills on a job description, resume or salary expectation… they are motivated to make meaningful relationships that last. How do they prove it? Check out the firms that have the best guarantees in the game – only those that stand behind their process and “guarantee” a match or commit additional resources to ensure a perfect match in the end, are worth it.
So, what does a Recruitment Agency actually charge? It depends! Our recruitment fees are based on the caliber of candidate, specialization or niche of the role or industry and the timeframe in which you are wanting to place your ‘Perfect Match’. Recruiting is tough – It’s time-consuming, discouraging at times, and not always as much fun as you thought it would be. We recommend you set the intentions and let us put in the effort. Once you find your person, the ROI on Recruitment Agency Costs pays back in spades (or should I say hearts!) and as an Accountant, I couldn’t help but consider the actual Cost when amortized over a successful, fulfilling, long-term relationship. #relationshipgoals