The cost of recruitment
Everyone ‘knows’ that recruitment is expensive, but few companies actually stop to calculate the actual costs.
The biggest cost relates to the time invested in the recruitment process. It’s important to remember that the cost of a member of staff is not confined to the hourly rate they are paid, but needs to include the cost of employing them, including office space, furniture, equipment and much more. When the is calculated accurately, an hour of staff time, especially when a senior manager is involved, can soar into the hundreds of pounds.
Saving our clients money is one of the core values we have, so we have actually thought this one through! These are the costs that you need to consider:
Job description: Not only the time of the department manager who is looking for a new member of staff, but also the people in the HR team who will need to review the current job description/role profile and update it or, in the case of a new appointment, create one from scratch. It may seem a straightforward exercise, but, in reality, you’re talking about several hours as the department manager and HR team compare notes and discuss, tweak and arrive at agreement on the final job outline.
Advertising the role: Whether you decide to brief an agency, place an ad in the press or place the job on one or more job boards, engage a head hunter – or a combination of any or all of these – this not only takes time, but there are fees involved.
Reviewing applications: Every application has to be reviewed and matched to the essential criteria you’ve established for that particular vacancy. If you have a bespoke application form then, at least, you are comparing like with like, but if, as in most organisations, you’re comparing CVs or a standard application form, it’s going to take longer to find the key pieces of information to draw up the interview list.
Organising interviews: Working out when the interviewer(s) is free and scheduling time for interviews, a suitable venue (possibly another cost if you’re interviewing off site) and then inviting your chosen list of candidates all take time and effort.
Interviewing: Quite apart from the interviewer’s time in each interview, don’t forget the preparation time each interviewer will need to invest in reviewing every application to ensure they have the right questions ready. With a long list of matching candidates this can run to days rather than hours, especially when they’re technical candidates and testing is needed too.
Short-listing: After the first round of interviews the selection of a final short-list is usually the next step. These people then need to be invited back for a more in-depth discussion. More organising of interviews is required!
Final interviews: More interviewer’s time – both for review and, if there is more than one interviewer, discussion and collaboration before the actual interviews.
Final selection: Sometimes this is straightforward, but often there are two or more suitable candidates or, worse still, no really suitable candidates. Then there is the admin time in sending out contracts, advice to those unsuccessful candidates, etc.
If you tot all this up, you’ll find that even a conservative estimate will be well over £10,000 – and often two or three times that in unseen costs. No wonder recruitment is considered expensive!
If you’re recruiting IT staff you could cut a large chunk of that process out. All candidates submitted to our clients have been interviewed, tested and matched to the culture of the organisation. This means that you only see a handful of candidates that are, effectively, the short list. The fees you pay are far, far less than the in-house costs of going through a two tier interviewing process. Give us a call on 020 3762 2020 if you’d like to discuss more.