The Cost of Recruiting - What's it Worth to You?

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So you're looking to make a hire and weighing out the options. "Why not hire in-house recruiters, or perhaps have hiring manager take on recruiting?" If considering these possibilities, it's also worth weighing the function of an outside staffing agency. As with any major long or short term business decisions, factoring in the services of an agency may prove to your advantage as a business owner, particularly as it concerns time, cost/benefit, and ROI.

While we've previously touched on some benefits of working with a staffing agency, this article outlines some additional, crucial factors to consider in making your next hire, no matter which avenue you choose to meet company needs.

1. Urgency: The more urgent the requirement, the more of a business case for going to an outside agency. When partnering with an agency, you're not just paying a fee for the person landing the job -- you are paying a fee for the years of networking, experience, and reputation that allow an agency to quickly produce the right person.

2. Quantity: In a good month, an agency recruiter will make 5 placements. You can assume that an in-house recruiter might do the same. Of course, there are exceptions, especially if the roles are easier to fill than others. But highly-technical or specialized roles will decrease that placement rate down to 2 to 3 a month, even if you have a high performer on staff. There is no way a single person can have as expansive a network as an agency, which ultimately will be to your benefit.

3. ROI: There are two key points that should be addressed when analyzing if outside agencies should be used:

What is the cost to the company for the role to go unfilled? This can be difficult to quantify, but productivity, time to market, and customer service are all areas which can be severely (and sometimes irreparably) damaged by under-staffing.

What is the cost to the company for having a hiring manager recruit for their own positions? Recruiting is a process and a huge time commitment. From alerting your personal network to following up on leads, posting positions to sites (subscription costs) - not to mention screening, interviewing, reference checking, etc. ... a typical search can take countless hours away from hiring managers in doing what they were hired to do - grow the business!

4. The Right Agency: It's imperative to pick the right agency, one with mutual trust and respect. One where the hiring manager can be assured that they will only get the top 2 to 3 resumes from potentially hundreds that the agency has vetted out. When it comes to the right agency, get referrals, vet them out, and make sure they are flexible and really want to partner with you, not just make a quick buck.

Since 1984, Technical Connections’ team of expert account managers and recruiters have helped companies across Southern California grow their teams and achieve success multiple projects, implementations, and industries. Contact us today to learn more.

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