Following on from my last blog on the DIY approach to recruitment I wanted to build on the unknown negative impact this approach can have on organisations. It’s understandable that during the economic downturn organisations became increasingly cost-sensitive, with many budgets slashed. As a result, a lot of recruitment requirements have been thrown at already stretched internal resourcing teams. However, while this was done with all the best intentions, this approach can cost organisations much more time and money in the longer-term.
While in-house recruiters may have the appropriate expertise and networks to cost-effectively source talent within their specific industry, when it comes to recruiting for professionals with specialised skill sets – for example in HR, communications, PR, marketing or finance – a lack of specialist knowledge can mean in-house recruitment is more often than not a false economy. And while social media channels and jobs boards can go some way in providing access to candidates, the huge volume and variety of job seekers using these mediums can mean a lot of sifting is required.
As a means of demonstrating the impact of the internal method and the potential cost savings of an alternative approach, we recently analysed the time implications in sourcing a specialist professional. We broke down the costs of all the elements involved in the internal process including: writing an advertisement and job specification; factoring in internal review and approval; identifying and negotiating with jobs boards; reviewing approximately sixty CVs per role; conducting six first stage interviews and making feedback calls to candidates. We also included the general fees for advertising across popular trade publications, national newspapers and online platforms.
We calculated that even when you just added the basic tangibles of time spent on the above activities and advertising costs, the result was three to four thousand pounds for an in-house recruiter, with all of the risk and no guarantee of any return on the investment. Conversely, external recruiters are able to utilise existing networks and in-depth industry knowledge to attract talent quickly and effectively, which in turn dramatically reduces costs.
In-house recruitment works very well in some cases, and is usually done with the best of intentions, but, even just from a cost perspective, the situation is not as simple as many think. Often the safest and most cost-effective solution is to bring in external help – someone who is knowledgeable, trustworthy and capable.
