As an Engineering and Technical headhunting firm we frequently hear objections from companies that don’t use agencies because they hire internally. They may assume the cost of using a recruitment agency would outweigh the benefits, and ultimately the value, that such a service could provide.
While considering the financial cost of outsourcing to a recruitment firm, you may balk initially at the “startling” fees, but here are the top 3 ways in which a head hunter will actually save you money.
A value and quality-driven head hunting firm that ideally specializes in your particular industry can actually keep your costs of recruitment down, as they are trained and have access to a network of vetted candidates. Ultimately their goal is to find the “perfect” talent to not only fill your position, but also earn the fee in doing so.
With this in mind, a head hunter can reduce recruitment costs by increasing retention rates by finding the best candidate not merely what’s available (or applying to your job postings).
Simply put, hire the right employee from the get-go. You can then solely focus your energy on keeping that person, rather than having to replace them. With estimates of the cost of a lost employee near 150% of their annual salary, retention will keep your costs down significantly.
Moreover, industries like engineering, for example, typically have a longer time to fill, (about 58 days) so the accumulated costs of a longer hiring process result in greater costs per hire. Again, another reason to find the perfect person for the job right from the start.
Within the vast talent network of a recruitment agency exists a fully vetted talent pool of candidates suited to meet your needs. This means your open job will be filled quicker as you will only need to consider the best few, dramatically shortening your time to hire. One survey found that 63% of jobseekers accepted a less favourable offer because they waited too long to hear about a preferred role, which negatively impacts company revenue.
Furthermore, as specialized recruiters in the engineering, construction, manufacturing and technical industries we possess the knowledge and a deep understanding of targeted job market segments. We have taken the time needed to foster in-depth relationships with our candidates. This knowledge working in tandem with our specialized recruitment expertise, saves you time (and money) in the end.
Low staff retention rates result in more direct expenses to your company, but the less tangible costs come, according to Paul Slezak at Recruitloop, not only with the hiring of a new person, but the loss of productivity around the resignation, rehiring and retaining process.
There are many upsides of hiring a great candidate: improved productivity, positive corporate culture and having a favourable impact on the company’s bottom line. Unfortunately, the same cannot be said of a bad hire. A Robert Half survey, substantiated that bad hires negatively impacted workplace morale up to 95% of the time. Subsequently, studies show that over 80% of employee decisions to quit have been directly caused by other employees.
While productivity suffers, a bad hire can further damage an entire organization’s reputation. Sought after candidates will shy away from your company based on the perception you have gained for hiring the wrong people.
At PHM Search | Simply Technical our goal is to simplify the very difficult process of recruiting the best possible talent for your company’s hiring needs. With over 19 years of experience cultivating and curating trust and knowledge-based relationships with over 100,000 Engineering and Technical candidates; we strive to add measurable value to your recruitment solutions and strategies. Want to know how we can save you money on recruitment? Contact us for a free consultation and we would be happy to discuss.