Kirsty has recently been reading Greg Savage’s recruitment blog, and pointed out an article that focuses on the actual cost to an organisation to recruit directly. One of Greg’s key points was that in many cases organisations aren’t aware of what it costs them to recruit internally. There are a huge number of issues, often unaddressed, that can affect an organisation that recruits this way, including both the financial cost and a drain on the organisation’s productivity.

Worst of all, if this internal HR-driven recruitment process fails, then all that time is completely wasted. And the organisation itself must shoulder the burden of the failure and the related productivity loss, potential legal issues, and cost of starting up a brand new recruitment drive.

The candidate-rich recruitment market

The candidate-rich market has changed the playing field for recruitment, and many organisations may think this will make the hiring process easier—they won’t have to rely on recruitment agencies to find someone. Having more candidates doesn’t mean the job of your internal HR or managers is going to be made easier. The sheer volume of applications can be a huge drain on your team’s functions. Imagine trying to screen 100 resumes—especially when you have other important work to do!

Other costs you might want to think about include:

• Administration
• Advertising costs (bear in mind that most recruitment agencies will also have a talent pool of suitable candidates, so your advertising may not necessarily be as successful as theirs, given their ability to access potential candidates who are not actively looking for work)
• Prescreening by phone
• Logistical coordination and booking of interviews
• Interview planning and strategy
• Time spent by managers and other staff who must deal with elements of the process
• Reference checking of the preferred candidate(s)
• Making the offer of employment
• Follow up calls and providing feedback to both successful and unsuccessful candidates
• Finalising the contractual agreement – not always an ideal way to commence the employment relationship by entering into salary negotiations

Ensuring you have the best candidate is not easy when you’ve got all this to consider.

Do you have the time to get the right people?

In managing our talent pool, The Johnson Group sources candidates 365 days a year – as opposed to going out to the market once a year to access the candidates who are available at that time. Do you want the BEST candidate for the role, or the best available candidate? Consultancies have a range of tactics, including social media, networking, database search, research and head hunting designed to ensure the very best talent is unearthed.

Recruitment consultancies have systems in place to handle candidates in an effective, honest way—particularly if they have been unsuccessful in a job. Having strong follow-up procedures with candidates will ensure they go away from the hiring process with a good opinion of your organisation, and happy with the constructive feedback they received even if they didn’t get the job.