Does Recruiting Directly Save Money?


Does Recruiting Directly Save Money?

Any Recruiter will have come up against a multitude of reasons as to why a company doesn't want to use their services. Without a doubt, one of the most common has to be that they can't afford to, don't have a budget to use an agency to recruit, or prefer to recruit directly.

It led me to do think about what it’s like for companies when they recruit directly. 

Let’s presume an Operations Manager with a manufacturing company is looking for a Production Manager. This is an urgent role as the person currently performing the role has handed in their notice and is due to leave in a month.

  • Firstly, the Manager gets the job description together and writes an advert. This takes around two hours. £48
  • They then contact two leading job boards, to advertise the role. £300.
  • They leave the adverts to run for a week to allow time for some applications to come through. By this time, they've received over 80 applications and begin to shortlist. They spend two hours sifting through the CV's rejecting the Landscape Gardeners and shortlisting the Production Managers. £48
  • They decide that ten of the applicants are possibly suitable and that they need to cut this down to a reasonable number of candidates to interview face to face. They plan to have a brief telephone interview with these candidates and think that they should spend 30 minutes with each candidate. It takes two hours over a period of time to arrange the telephone interviews. Cost for the time for interview and to arrange them - £168
  • They decide to shortlist five candidates for a face to face interview and reject five. It was quite easy in the end as one wasn’t eligible to work in the UK, two thought they were interviewing for a different role, one had an unrealistic commute and one candidate felt the salary was too low. £48
  • Out of the five, one candidate decides not to attend, one has been offered another role and three interviews go ahead. The Operations Manager has set aside a whole day for the interviews, alongside the HR Manager. £312
  • They decide that none of the applicants are suitable. One made them wonder if they'd even written their own CV.
  • They spend time writing to the unsuccessful candidates £48.

First total £972

By this point the Production Manager has served his notice period, and they have to begin the advertising and interviewing process again.

Without leadership, the production team begin to miss deadlines, orders are not on time and the company incurs charges for missing order dates and service levels £Varied

They begin the process again, getting 40 applications over two weeks this time. Some of the applications are the same. Several of the candidates phone in as they feel their retail management experience would be strong and want to explain why they should be interviewed.

Production Supervisors and Team Leaders begin to become unhappy at carrying the workload of the Production Manager. The level of their commitment wains and one of the Supervisors decides to look for a new position, Another order isn't on time and a customer decides to take their business elsewhere £Varied

They repeat the process. They receive 40 applications this time. They only shortlist three. One doesn’t attend, one cancels and they offer the role to the only attendee. They gladly accept.

Second total £1944

Their company counter-offers them and they stay where they are. They repeat the process.

Third total £2916

And the company still hasn’t recruited anyone.

While this may sound like a worst-case scenario it's what we hear repeatedly in this candidate-led market when companies finally decide to move to using a specialist agency. While we understand that companies will want to reduce agency cost, it's worth considering the cost of your own time and effort. Using a specialist agency such as Burns Recruitment means you will receive suitable CV's quickly, and interviews arranged promptly. As in most cases we work in a contingency basis, there is no cost until the right candidate starts their new role.

Our market knowledge allows us to work with you to access in-demand, passive and active candidates. Releasing you to do what you do best, in turn saving you time and money.