The hiring process isn’t just time-consuming, the wrong decisions can lead to bad hires, and an increase in turnover, which end up costing and impacting a business's bottom line significantly.
Recruitment Realities
On average it takes anywhere between 20 - 50 days for a recruiting professional to identify, vet, present and fill a direct hire position. Executive or direct placement recruiters are successful because they are laser-focused on finding the right fit for their clients. With a market saturated with candidates, focused time is one of the keys to success.
Let's break down the data. An office position will yield around 250 resumes while an IT position can yield up to 500 on average. Most business owners don't have the time to filter through the volume of talent in a methodical way.
If you have a team or a person who normally does the recruitment in your company, evaluate how much time is going into the process. Oftentimes, internal talent acquisition takes double the time, and understandably so, considering the hiring person is most usually doing other tasks on top of recruitment. How much time is really going into sourcing, recruitment, and hiring?
How Does a Recruitment Company Lower Costs???
Not Your Average Joe
Recruiters each have a network they have cultivated, honed, and shaped. Using this vast network of professionals, they are able to find and recruit a wider variety of people than what is readily available on job boards most commonly used. These networks are mostly made up of passive candidates, those who are not actively looking for employment or haven't thought about making a change "yet." The recruiter is skilled at tapping into this network and presenting opportunities to professionals who best fit the role for each specific client.
Hiring the Right Recruitment
Every business has a specific set of skills that they’re looking for in a candidate. If you’re trying to find a content writer, this doesn’t necessarily mean that any content writer will be able to do the job. Maybe, your business requires content writers with some WordPress experience, or maybe you’re looking for someone that has expertise in creative work like poems. In such cases, hiring a regular content writer isn’t good enough. A recruitment company can sift through the potential candidates and search for candidates that have the relevant skills your business is looking for, reducing the time required for employee on-boarding.
For business owners who have hired internally, the cost of hiring a professional recruitment professional may seem high at first. On average, a recruiter's fees can range from 10% to 30% or more, of the position's annual salary, depending on many factors. In most cases, the business does not pay the recruiter until the position is filled. For new clients, the recruiter may request a down payment based off the estimated annual salary of the position, until a working relationship is established.
While the cost may seem high initially, statistically there is a much higher ROI when a position is filled through a specialized recruitment professional.
Closing Thoughts...
Partnering with an outside recruiter can have many benefits, It can be a long-term, time and cost-efficient solution for staffing needs if you are struggling to find quality talent in your industry, have high turnover, are growing rapidly and need to keep up, or are looking to fill a highly confidential position. Executive and Direct Placement Recruiters are as unique as candidates. Many focus on a specific industry they have expertise in, while others work in industries they personally have experience in. Some do it all! Whichever way you lean, it's important to find a recruiter that truly understands your business to ensure the longevity and success of each placement made.