Last updated: December 3rd 2022
Applies to: Business Owners and Hiring Managers
Are you about to start a new hiring process for your business and wondering what recruitment costs are involved?
You are not alone.
The recruitment process can be a stressful and overwhelming experience, especially when it’s your first time hiring for your business.
So how much does recruitment cost exactly?
The short answer is …it depends.
Most recruitment companies will understandably try to push their fees as high as possible. It is not unknown that recruitment companies can charge 30% of starting salary, sometimes even more for executives or difficult-to-fill roles. However, fees are more commonly pegged in the 20-25% range. So for a new vacancy with a starting salary of £35,000, you may have to pay upwards of £7,000 plus VAT.
This is a serious investment, especially for smaller companies or those that are in a growth phase. It might feel like a cost that you don’t feel comfortable with. That’s completely understandable, and I would encourage you to look at other options if that’s the case.
Here are some things to think about:
1. Keep recruitment costs low – you could do it yourself
This seems a viable option.
How hard could it be?
We have found that people can become overwhelmed or paralysed by the fear of making a wrong decision and so get stuck.
If you’ve made a start or considering doing your own recruitment, we are developing several tools and downloads for you to use, many of which are free. Check back with us for these free tools, such as optimising your job advert and why you should never advertise your job description as your job advert.
2. Keep recruitment costs slightly lower – you could outsource parts of the process
Many smaller companies look to take this option.
Look for recruiters that provide a partial service and will charge you a fraction of the cost.
You can tap into their expertise at an entry point you can afford.
Contact us if you would like us to do your initial phone interviews.
3. Optimise your hiring with expert help – you could partner with an agency on a retained basis, perhaps for a fixed fee
If you are a skilled negotiator, you may be able to get an agency to agree to service your role for a smaller fee if they are given exclusive access. From their point of view, this may make sense if they work without competition. You would need to be sure they can provide you with the required services and within your desired timeline.
This could be a model that works well if you have several job vacancies. The recruitment agency will be happy for the work, and you get to deal with one trusted recruiter who can provide you with a bespoke service.
Whichever option you decide is best for you, make sure you do your due diligence and don’t let the recruiter browbeat you into a solution that only really works for them.
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Still need help?
If you still find the recruitment process a little daunting and would love some advice, feel free to get in touch with the team at Your People Partners. Or call us on 0117 290 0208.
We are always happy to help.