In these challenging financial times, many companies are trying to tighten their belts and come up with ways to save money. It makes sense. With potentially decreased revenue, cost cutting is often the best way to keep the balance sheet in the black.
One such way that companies think they can save money is by stopping using external recruiters. The feeling is that we are expensive and an easy place to cut costs. But is that really the case? In many cases, no! Using a recruiting agency can actually be a money saver for a company instead of a liability! Let’s take a look at a few of the ways us recruiters can help your company to be more efficient and actually save you money in the end.
The monetary value of your time
How much is your time worth? Or the time of your employees? And how many hours of that valuable time would they be spending running job posts, reviewing resumes, screening candidates scheduling interviews, maintaining job ads, and negotiating compensation packages without the help of a recruiter? Your hiring managers are busy enough doing their jobs without being bombarded with hundreds of resumes to review and all the work that entails. And while many are great at their jobs, they don’t have the experience necessary to locate the best candidates quickly and efficiently. Most recruiters don’t rely on job ads, but instead focus on passive candidates from competing companies. It is pretty tough for your hiring managers to make those calls into other companies. According to HR Cloud, 73% of workers consider themselves to be passive candidates, meaning that they aren’t looking, but that they would consider making a move if the right opportunity was presented to them. That’s where we come in!
The High Cost of Job Ads
Have you ever used Indeed? Zip Recruiter? Monster? While these sites certainly have benefits, posting and monitoring job ads can be costly and very time consuming. In today’s job market, job ads posted on these types of sites can result in 500-1000 resumes in the first few days. Sound good? It can, but do your hiring managers have the time to read through that many applications? And even if you use a good Applicant Tracking System (ATS) that has algorithms to pick out certain keywords, it still requires significant time to sort through what’s left and talk with them. And the cost of the ads can be excessive, especially when adding premium services or extra screening tools.
The High Cost of Extended Job Vacancies and Bad Hires
The longer your job is open, the more money it is costing your company. That is a fact. Your employees are there to increase your company’s revenue, and when seats are empty, it is hurting your bottom line. And when your managers rush to hire and end up with the wrong people, there are the high expenses of the onboarding, training, and ramp up time for new employees, only to see them leave shortly thereafter because they were never the right fit in the first place. A good recruiter screens many candidates and only presents those who are totally qualified and hirable. And they can do it rapidly and with more efficiency, dramatically cutting down your time-to-fill numbers and getting people working for you and making you money instead of costing it. And doing it much faster.
The Insurance Policy of the Recruiter Guarantee
Most reputable recruiting agencies provide a guarantee, which gives you assurance that if the candidate doesn’t work out, they will replace that person at no additional charge to your company. Hiring someone on your own does not give you that peace of mind, and re-opening a search can be costly and time consuming not to mention the time spent onboarding and training all over again with someone new. You can work with an agency to agree on a guarantee period and terms that are mutually beneficial, providing a built-in insurance policy that comes with each new hire.
These are just a few of the benefits that come with using a recruiting agency. And while there are many more, you can see that using an agency may not be as costly as you think, and it can usually save you money in the long run.
Reach out me directly and let's discuss how we can help you find the best talent, and save you money in the process. Reach me directly at ron@milmansearch.com