If you break down the double negative, this statement is 100% accurate, although not fully understood.
The number one reason small, medium (and some large) organizations don’t use recruiters is because they perceive this service as too expensive.
It’s no secret that hiring is expensive, whether or not you use a recruiter. Depending on which study you cite, the total cost of hiring an employee ranges from $4,000 to $7600 (USD) and can take approximately 52 days. And if you’re hiring to replace someone, this can cost you up to 50-60% of their annual salary.
While it’s true that hiring a recruiter has a one-time cost averaging between 15% – 25% of the employee’s annual salary, it’s important to look at the entire situation and see how the hidden costs of not using a recruiter add up.
Damage to your Brand or Community Reputation
- Termination and wrongful dismissal lawsuits are stressful, costly and can damage your brand permanently and indefinitely.
- If you hire friends or rely on employee referrals or nepotism, you risk misguided hires and a culture lacking diversity.
Increased Liability and Loss
- A bad hire is expensive and can have real consequences such as increased employee turnover, lost clients and a toxic work environment.
- Not all in-house HR staff have experience with recruitment and lack knowledge about employment standards, the Canadian Charter of Rights and Freedoms and provincial legislation.
Additional Strain on Existing Resources, Including Yourself
If you add recruitment responsibilities to an employee’s workload, they can quickly become overwhelmed and stressed. In addition to their day job, these employees:
- Must overcome a steep learning curve with high stakes.
- May either extend the process due to hiring anxiety or confidence issues, or rush the process because they need to return to their other responsibilities.
If you find yourself involved in hiring, this keeps you from doing what you do best. With business owners already spending up to 40% on non-revenue generating activities, this is not the best use of your time.
7 Ways to Decrease the Cost of Hiring
Business owners know that nothing erodes the bottom line more than hidden costs. But there are ways to ensure the overhead associated with hiring doesn’t balloon or sideswipe your business.
Does this all add up for you? If you are on the fence about hiring a recruiter, let us help you weigh the pros and cons. Contact [email protected]ncepts.ca