The hidden costs of recruitment
Written by Geoff Newman on 25/07/2013
For many entrepreneurs, the cost of recruitment is a deal breaker. Whether working with head-hunters recruitment agencies or job boards many people make a decision based on cost rather than value. This short-term view can compromise the recruitment process as you fail to recruit suitable talent, or worse may not recruit at all. The result can be overworked employees and in the long run lost business.
Lost opportunity cost
Failing to recruit will have a difficult and potentially huge lost opportunity cost. If your vacancy remains unfilled you will either not be able to service your customers effectively or fail to grow your business. All vacancy positions will have a lost opportunity cost and if you they don’t then the role adds no value to the business.
If your staff are currently over-worked it may threaten the quality of their own work and cause them to leave your business, leading to additional recruitment costs. Alternatively you may need to pay over-time or offer a pay rise for the additional work undertaken.
And what about the cost of wrong recruitment?
By trying to save money on recruiting, some businesses look for the cheapest options. However, falling for free trials, limited offers and other scams could mean money in the bin. Not all of these opportunities lead to satisfactory recruitment and a compromise could make things worse than not recruiting at all. Again there would be opportunity loss because of an unfit employee, but also the potential cost of having to start all over again.
So if you are considering recruitment but are worried about the cost, remember to compare the cost of not recruiting. Also make sure you find the best way to fill that position meaning every penny is well spent.
We hope this article helps you think again about the need of recruitment and its cost. If you would more information on the topic please feel free to download our free guide on realistic recruitment as well as to contact us here.