Does it Pay to Work with a Recruiting Firm?March 25, 2019 7:29 am
If you’ve been involved with your company’s hiring processes for long, you have probably had the experience of getting all kinds of good vibes from a job applicant only to find out, after hiring them, of course, that they are not the kind of employee you hoped they would be.
Bad hires not only send you back to the drawing board to start the whole taxing hiring process over again, but they also exact a heavy toll.
Here are just a few costs of a bad hire:
- Financial hit. The U.S. Department of Labor estimates that bad hires cost companies at least 30 percent of the hire’s annual salary. Thus, if a bad employee’s first-year earnings were set at $65,000, you would pay out nearly $20,000 for the misfortune of having them on staff and the trouble of replacing them—and that’s in addition to the salary that you paid them while realizing that they weren’t up to snuff.
- Sagging morale. Bad attitudes are contagious, so if your hire was negative or prone to complaining, they could pull down the morale of an entire office. And that can be hard to build back up.
- Burnout. If your bad hire is not keeping up with their job responsibilities, others are likely having to pick up the slack. This can lead to burned-out, unhappy co-workers.
- A lowered bar. It’s difficult for co-workers to see a new hire making the same amount as they do (or perhaps more) and doing a half-baked job. It’s human nature to respond by doing less out of frustration at the inequity. Even after you’ve gotten rid of your bad hire, it can be hard to get productivity up to acceptable levels again if it has taken a hit.
In order to sidestep the costs of a poor hire, many people bring in the experts to help with the recruiting process. Do professional job recruiters cost money? Yes. Are they worth it? Often—but it depends on the needs and dynamics of your company.
Here are some benefits of a professional placement service to help you decide if it’s right for your organization to outsource some or all of your hiring:
- They’re good at what they do. If you only hire a few people a year, you’re probably not going to have the same skill in the recruiting department as experts who are immersed in the hiring process all day, every day. They can often help you avoid some rookie mistakes that could give you heartburn later.
- Better access to specialized candidates. If you are looking for someone with a very specific or highly technical skill set, recruiters often have greater access to these people. For example, you could contact an engineering recruiter who specializes in nothing but the brightest and best engineers or a nonprofit recruiting firm with broad access to people with experience in nonprofit work. These recruiters’ pools of applicants will likely be far larger than yours.
- Quick turnaround. Since staffing agencies spend their days finding people, they are pretty speedy. They can often fill a vacancy faster than you can so that critical positions in your company don’t sit open, eating up money and causing headaches.
- Saves you time. Hiring can be a major drain on your limited time, and time is money. Sure, you may pay a little more, but it may be worth it to free up your time so that you can focus on the things that only you can do. Remember that you can still weigh in on the hiring process, but you won’t have to deal with all of the time-eating detail work.
- Goes beyond the obvious. When you start soliciting applicants, you’ll likely draw in those who are actively looking for a job. But what about those employees who are contentedly employed elsewhere but would consider making a change for the right job? Professional job recruiters have broad networks and can access talented individuals—even if they’re not currently on the prowl for new employment.
If you decide to use a staffing firm, communication is key. The more they understand what you want in an employee—including their skillset, personality, and values—the better they will do at finding you the right applicant. As you work with the firm over time, you can develop a relationship of trust and gain an invaluable partner in the recruiting process.