Reducing cost per hire is a goal in any Talent Management Strategy. In recent years, online and social media recruiting has eliminated the need for expensive print ads, yet companies are finding that those savings by traditional recruitment firms have not been passed down to them.
Outsourced Flat Fee consulting is a relatively new concept here in Canada but it is growing in popularity in Europe and the UK. It is intended for those employers who do not want to pay high recruitment fees, but at the same time do not want to handle the recruitment process themselves.
In order to combat high Cost per Hire (CPH), over 50% of companies in the GTA have brought the recruiting function in house with variable results. Unless there is a well run, recruitment process with all of the tools and methodologies that professionals consistently use, much of the pressure to fill jobs is landing back on the hiring managers. Managers are spending 30% of their time on recruiting functions instead of their regular duties with inconsistent results since they are not professional recruiters.
By committing to a flat fee structure the client saves, up to 50% when compared to a traditional contingency approach, without the overhead of full time recruiting staff. Whether hiring a clerk, programmer or executive, you pay a flat fee, which makes this a highly cost effective option reducing the cost per hire. It is almost resource free leaving your staff time to concentrate on their core daily tasks and results in receiving a number of highly relevant candidate CV’s from which to interview and hire from.
In an age where those seeking employees have increasingly less time to attend to the administration time needed when recruiting, it as a good thing to be involved with a recruitment company who will ensure their clients are guided fully throughout the recruitment process. It also allows for direct recruiting from industry competitors, which an internal team would not be able to do.
Most people think that it is expensive to use a recruitment company, so many small businesses opt to try and do it themselves to save money which is totally understandable. The cost and recruitment headaches of having key employees spending time shortlisting, chatting on social media sites, contacting, arranging interviews and dealing with enquires, negotiating terms, and writing job contracts should not be underestimated.
Fresh Management has been finding great talent since 1996 for clients. We offer all of the same services that traditional firms offer without the ballooning fees. We find the right talent for the right price. Call us today!
