The True Cost (and Value) of Recruitment
12 April 2017 |
Samuel Obafemi | About a 2 minute read
The recruitment function in a company is often the most overlooked and unrecognised arm of the business. Seldom is it recognised as a pivotal part of the business but rather viewed as HR’s noisy, less sophisticated cousin. Very few companies value recruitment or invest in recruitment. While a recruitment team should be built into a well oiled machine it if often scoffed at and seen as dispensable. A stigma is activated when the word “recruitment” is uttered. A stigma which may come from the recruitment agencies of old. This stigma is usually uneducated, money chasing group which fabricate to make targets. This couldn’t be further than the truth for both internal and external recruitment teams.
The recruitment function has grown into a pivotal part in company growth, branding and overall success. The recruitment team are gatekeepers entrusted with the responsibility of upholding and promoting company values. Yes, their primary goal is to recruit great talent for the company but also to ward off talent/characters that would be harmful of the business. The recruitment team is usually the face of the company to the general public, especially when we are discussing small to medium sized companies.
Overlooking, not investing in or under appreciating your recruitment team can lead to costly ramifications for your business. It is advised to ensure you bring in competent and talented recruiters, ones who are bought into the vision of the business and can deliver in difficult markets – where there is so much candidate choice. Failing to do this is the equivalent to burning money.
Recent CIPD numbers suggested it costs an average of £4k to fill a vacancy – that’s made up of recruiter salary for the time period, job advert, interview fees etc. Now let’s assume you had to replace this person within the first six months, due to bad recruitment. You now have to consider; the cost of going back to market, productivity loss, salary spent on employee and training budgets. There are also various unquantifiable aspects to consider; time spent recruiting, time spent training, employee relations, team morale, client relations etc.
The bigger picture of a “bad recruit” is bleak, while other arms of the business can make money for the business. The recruitment team can ultimately save the business a lot of money and I would implore the powers-that-be to wrap your recruitment team in cotton wool and invest in their productivity and talent. Feed the plant and it will grow!Read More From This Author
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