Should you utilize recruiter services or handle hiring employees internally?
The recruiting industry is booming with so many people out of work these days. Recruiting companies are hiring for themselves to handle an influx of resumes and their own growing businesses. But is this the path your company should take when it needs to hire?
Understandably, the weak economy calls for a decrease of expenditures and an increase of incoming funds for businesses. One would assume that handling this sector of human resource management internally will save money and still get the job done. But is it truly cost effective?
Size does matter, in this case. In a large corporation, there most likely exists a human resource professional or an entire department already handling this affair. In the case of a company like this, which is hiring staff who fits and sticks, this article is moot. If not, a change need be made. Either the HR personnel are incapable of handling the job and need to be replaced, or they are overwhelmed with other duties and not focusing on hiring as much as needed. Outsourcing is a wonderful option if the latter is a problem. What should a smaller business do?
I am a fan of recruiters. I believe a successful and professional recruiter has amassed a wealth of knowledge, resources and skill set, of which many people do not have or have access to. They are masters of the workforce industry and can often and ideally find the most qualified candidate within a budget to fill a particular position for a business. They can sniff out a fake and weed out candidates who do not fit the bill much better than the average person, simply due to the volume of people they encounter daily and inevitable experience which comes along with their career. Furthermore, the substantial amount of time in creating and posting employment opportunities, searching databases for quality candidates, resume reviewing and pre-screening/interviewing, may make the recruiter invaluable and actually save the client company money. If the employers and staff time are better served elsewhere, it may be a good idea to consider this option when a position within a business need be filled.
Additionally, the vacant position is another matter to consider. If an entry level employee is needed for a home based business to answer phones and handle a calendar, it may not be necessary to hire a recruiter. However, finding the perfect Director of a Fortune 500 company may require too much time and energy to handle internally. Evaluate your company, it’s financial status, your employees and the position you seek to fill, then decide whether or not internal recruiting is the best option.
Let’s talk figures.
Oftentimes owners do not want to part with capital to use a recruiter or find them unnecessary. I get it. However, if you plan on handling this yourself, you should consider the following: Calculate the theoretical or actual hourly rate for the person posting the vacancy, reviewing incoming candidate submissions, contacting potential hires and interviewing. Multiply that rate by the average amount of time it takes to find the perfect employee and compare it to a recruiter’s fee. There’s your answer in a simple mathematical form.
If you determine it’s not cost effective and give it a go alone, be sure you are following these steps:
Very clearly and specifically determine what you need an employee to handle within the organization. From there, you can determine what position it is. Give it an appropriate title. Consider what you really need the candidate to know technically, not merely what you want from them emotionally. Think about the future also. If you plan to grow and will want someone to move up from this position, this is important to know. You now know you need someone flexible and motivated, with a desire to evolve. Research the salary range for this position in your area, both physically and industry-wise. An accountant for an Idaho, USA car dealership would probably not receive the same salary as one for a 2,000 person law firm in London. Determine what type of personality is needed for the position, the company, and the industry. Hospitality or fashion businesses with positivity gushing from all staff, looking for a receptionist, may require more friendly, pristine, cooperative employees, while a negotiator, glued to a desk and surrounded by sharks, often need be more spicy, aggressive and manipulative. Design an ad using keywords, now that you have a clear idea of who you need. You have built an ideal employee in your mind and should make an offer to whomever comes close to matching that person, after multiple interviews.
Happy headhunting. There’s always a perfect match out there, but everything takes effort or cash!
- Follow the basic teachings of life to hire and ...
- Why is “recruiting top talent” and “employee re...
Another set of tips to make networking less painful. What you can do to be an expert in social interaction (Part 2 of 2)If you want to know why you must network to gro...
Squirming at the thought of networking? Here are some suggestions for you to become a master (Part 1 of 2)If you want to know why you must network to gro...
- Do you cringe when you hear the word networking...