When it comes to recruitment most companies underestimate their costs by 90-95%. We understand, that when money is tight, the easiest thing to do is remove the agency, to reduce headline costs, and take recruitment in-house.
So why should you use an agency to support you with recruitment? We have put together a list of downfalls, that might sound all too familiar, and why an agency can remove these recruitment misfortunes.
The stats are against you
We all know when you hire someone it takes time and money. But if you don’t have the right resources and skill set in house, you could end up spending more money and hiring the wrong candidate. It’s worth noting that over 70% of in-house solutions fail to source 90% of their vacancies themselves, in some cases all openings. Therefore, agencies are needed to help further down the line and the cost saving process has gone out the window. Sometimes cutting corners is just not worth it.
The Time it Takes to Hire
Have you ever tracked how long it takes to hire people? if you haven’t it might surprise you how many hours it takes and how It could hugely affect the productivity within your company. The average hiring period is around 10-12 weeks (from job opening to accepted offer), during which time the role is unfilled. For most companies that means there is either no productivity, or productivity is provided by diverting someone else, likely the manager, or by using contract labour. All these options have a tangible cost, and if the hiring timeline slips the cost goes up. When going through the hiring process, it is good to remember, that in house recruitment teams generally have longer hiring times than agencies. On average their hiring timeline can be between 12-16 weeks, due to a lack of extensive databases and wider industry contacts.
Quality of Hire
When hiring, it is always reactive process, sourcing candidates when the need arises. The immediacy of that need means that companies are entirely reliant on candidates already in the market: signed up with agencies, looking at ads, on job sites or on databases.
Studies have shown that this method and way of recruitment only represents around 20% of the qualified candidates in the marketplace, and even then to access all of that 20% you would have to have some serious free time, access to lots of different databases, as well as a budget behind you to spread your advertisement for your job role.
The reality is that companies are on average accessing only 2-3% of the available talent pool to fill any given vacancy. Limited access, to only people who really want or need a new job, has a dramatic impact on the quality of person you can recruit for your job.
Too many cooks… don’t know what they want
When deciding upon your perfect candidate, but without open collaboration between senior management, too often there is a convoluted opinion on what the need is, what the role will entail, and who the ideal candidate is. This often doesn’t come to light until the interview process is in full flow and a significant amount of time has been invested with little progress made. This is where Responsive Personnel can ensure all the right questions have been asked before the process begins.
All that is gold does not necessarily glitter
Too many companies simply judge a candidate by their cover (letter), CV, or those with the best interview skills. I am sure you have heard of the saying, never judge a book by its cover? These hiring decisions are often based on gut feeling and emotion. Not considering other factors such as attitudes and behaviours despite these being a mainstay in considerations when employees are under-performing or dismissed. This is why an agencies expertise’s can really help and remove any emotional decisions that might be made in house.
But what if you get it wrong?
If you made the wrong hire, you’re now faced with spiralling recruitment costs including severance packages, a potentially wasted investment, and the added recruitment cost of a replacement. A report, by HR Review, has estimated that in the recruitment of a replacement, you’ll be left with another £30,000 cost. That is a huge chunk of change – especially if you are trying to cut back.
Did you know that up to half of new hires leave within the first twelve months, and the average is over 20%? The reasons are simple, the 6-8 weeks of contact with a company of a standard recruitment process is not enough to develop a cultural rapport between candidate and company. In short, the new hire starts and only then finds out if they ‘fit’, any concerns are amplified by the pressure of the new job.
But what if there was a way of knowing if someone would fit into your company before you have given them the job?
Cut these recruitment costs and hire right from the start
Here at Responsive Personnel we offer Empathy Profiling as part of our services. This is a practical and user-friendly tool to understand ourselves and others. We have developed a very simple and yet highly accurate three minute questionnaire to help individuals understand their own emotional intelligence or temperament.
This tool can, when administered by a trained facilitator, help individuals, teams and their managers develop a better understanding of the emotions or temperaments that drive people’s behaviours; particularly towards how they manage themselves and their relationships with others.
So how can empathy testing help you?
Empathy is a fantastic tool which ensures you select a candidate that will both fit in and is likely to naturally perform well in their role. That makes your recruitment process more effective because people stay longer and perform better. It will reduce the chance of appointing someone who does not fit in and those likely to become a cost management problem.
Empathy is a huge insightful performance management tool. It helps a Manager adjust his or her approach with each individual in their team, making performance management easier, securing greater discretionary effort and improving delegation. We can run empathy tests within your team and work with you to make decisions based on these results.
Empathy is also a great tool for Sales People because once you understand how to judge someone’s style from their everyday behaviour you know how best to influence or persuade them. It is easy to learn, simple to use and very effective.
In short, the true cost of recruitment is not just about money, it is also about productivity and the larger problems you could create if you hire the wrong person. With our empathy profiling, we can reduce the time it takes, speed up the process and most importantly hire the right person from day one. Ultimately saving you a lot of money in the long run.
Talk to us today.