And what if the hire you need is critical to your plans for your business success. Or perhaps you need someone that has rare skills and experience? (For both these sectors the talented, highly skilled people you need, are becoming increasingly difficult to find.)
Well there is more than one way for sure, you can try to do it yourself. Or maybe your HR department will give it a go. Maybe you have an internal resourcing department or RPO agreement or maybe you go externally to a recruitment agency.
But whatever it is, what drives your choice?
One things is certain, at some point cost is a factor and there is cost involved no matter what you decide, whether it’s the cost of your time or the fee you pay, advertising costs, referral costs etc. Someone somewhere has to be paid to do the leg work and bring everything together.
Then there are the other recruitment costs too, the indirect or hidden costs, those involved when things don’t go to plan, you don’t get the right applicants, you don’t see the right CVs, the candidates you do see are second rate or worse, or you make an offer that gets accepted only for the candidate to drop out before they join (or shortly after).
This wastes time, it sets plans back, it frustrates everyone, its distracting and it slows your own performance (and what might that mean for you?). These are the Recruitment Costs that are almost always overlooked.
Well, if you do happen to know people you can persuade to come on board, that’s great. If some of your staff know people that will work too but if not you have to go out to the market.
So again, what is driving your choice of how to recruit especially for your critical, business dependant recruitment needs?
Time and again when I speak with hiring managers I hear the same thing; we can only pay so much and we cannot pay more than this or that amount. So it would seem that the reason for their choice is mostly about recruitment costs.
The watch on your wrist
Just for a minute, take a look at the watch on your wrist, it may not be a Rolex, but I bet it’s not a Timex either! Yet both these watches do exactly the same, they tell the time. Functionally there is little to choose, both brands are well designed and look good. So in fact to all intent and purpose, why not go for the cheaper option?
But most professionals I know don’t make this decision on price alone. I don’t know about you but I wouldn’t buy a Timex, (sorry Timex, I am just not your market!). When it comes to clothing, mostly I don’t shop at Primark, I tend to go for something I feel has quality, style and a certain amount of prestige.
So, in cases like these, it’s probably true to say that Price isn’t the chief motivator to what we buy. There are other factors (otherwise nobody would buy a Mount Blanc pen, would they! Bics write perfectly well. A bit blotchy sometimes, but with my hand writing who’d know.)
Why then, do so many hiring managers and HR professionals just look at price when it comes to their recruitment? Especially when it’s their really critical recruitment.
Cheap of Cheerful
When it comes to recruitment, what you pay DOES impact what you get. Not all recruiters are great at telling the time, a lot don’t have style or sophistication, they don’t wear very well, many are not that accurate. (OK, so perhaps I’m taking the watch analogy too far, but I’m sure you get the point)!
And here’s the rub, paying less can actually cost you more. How so? Well you pay more in wasted time, more in wasted salaries on hiring the wrong people, more on lost revenues, lost customers, lost business.
And personally, it could mean much more to you!
When you make your choice of how to recruit and who to choose to represent your business in identifying the right people to join your team should cost really be the first thing you ask about? Remember Timex is cheaper than Rolex for good reasons; they really are not as well engineered or as reliable, or accurate or stylish or prestigious. In the same way some recruitment businesses charge less than others for a reason too, cheap is not cheerful!