How I Justify Recruitment Fees
Often I assume (albeit sometimes wrongly) that everybody understands the value of using a good recruiter.
In short, we source the talent that our clients either cannot find, or don’t have the time/resources/networks to source for themselves.
The assumption is, that they’ve done the cost/benefit analysis of hiring somebody for the role, and that it benefits their business overall to have somebody in this position, otherwise they wouldn’t be trying to fill it, right?
And although not every employee directly generates revenue, another assumption would be that this new hire will make the organisation as a whole, better in some way, therefore helping the business towards the presumed goal of profit.
There are a lot of assumptions here so far, and they’re based upon what the average company is doing.
Recruitment is not an easy gig, if it was, recruiters wouldn’t exist. The market shows us that the demand for recruitment services is higher or equal to the supply, hence agencies staying in business.
Recruitment fees are a significant investment for a business, and they’re large because the process is time consuming, difficult, and costly for the recruiter to deliver. Not to mention, it’s one of the only business models I know of, where you can do all of the work and then at the last minute your client can decide to shut down the entire thing with zero financial implications to them. If that wasn’t bad enough, take that risk and double it, because the candidate can do that too.
Our product is the most unpredictable product you can possibly deal with, although we try our best to predict it anyway. The human being.
Before committing to the process it’s vital that you work out whether the investment is going to yield you a positive ROI.
There are nuances to every hire, I understand that, so take the following with a pinch of salt 🧂.
Here is a simple equation to help you decide whether or not it makes sense to engage the help of a recruiter, when looking for your next superstar hire.
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