The biggest concern to pretty much every client I have is all about cost. It’s not surprising given the economic crisis that people are considering every £ they spend. What I find astonishing is that most don’t realise a head hunter / recruiter fee is probably the most insignificant part of the overall cost to recruit.
There are two key things to consider when replacing an individual:
1) The cost of lost output
2) The financial considerations
According to various sources the average cost to hire a new person is £30,000 this encompasses recruitment fees, training, IT and so on. It can take up to 6 months for a person to really know what they are doing and have a positive impact on the business. During this time you have paid a recruitment fee, training costs, IT costs, taken time out of your own job, paid the employee and the bits you forgot about such as this person is not yet making your company revenue. £30k are you kidding me?
Recruitment is expensive and can be very emotional. I encourage all of my clients to get their recruitment processes in line. As a business grows you have to choose your battles what can you do and when do you need to ask for help? The true value in replacing someone is totally subjective, dependent on the size of the business, the role and business sector. Get your recruitment right and the cost will be insignificant, mess up and it will hurt.
A few tips / thought provoking ideas that may help keep your recruitment costs down:
– Put in place a recruitment process / strategy
– Know your limits – are you capable of finding the right person or should you seek expert help? Remember time = money, try not to waste either.
– Understand the cost of staff turnover and look at how better to retain the people you have.
– If you use a recruiter make sure you choose the right one – cheap does not always mean value.
– Remember staff turnover is inevitable and it happens to us all don’t let your attitude get in the way of finding you your next fabulous employee.