The Cost of Recruitment
Employees are the backbone of each company. That is why finding and getting the right talent. To fill in a vacant position is a major concern. However, recruiting comes at a price.
Recruiting is no easy task. Aside from it takes a lot of time, the risk of getting a bad hire could happen if recruitment process execution is poor.
There are a lot of things to consider in recruiting talents that’s why many companies are outsourced to RPO (Recruitment Process Outsourcing) companies simply because they have the right knowledge, skills, people, and technology to make a return of investment by getting a good hire.
Is a recruitment solution expensive? ---- Yes, it is.
As a business owner, sometimes you might think that recruiting on your own makes no difference than having an external team. Well, you’re wrong.
There’s a lot of difference between the two. In fact, outsourcing to RPO companies will supply all the company’s needs in the recruitment process, however the cost varies in every industry. Some may charge 15 to 25% of the employee’s annual salary depending on the position successfully filled which is already a huge money especially for startups and small teams.
So why is it expensive?
Recruitment companies charge for what they do as they are being paid for performance.
In business, time is valuable, but an RPO company gives the best outcome out of it. Here are some reasons why a recruitment service is costly.
- RPO company runs the 80% time-consuming, repetitive tasks associated with hiring such as screening and sourcing the candidates, assessing, and interviewing them all the way to the finish line.
- Creating job posts and source candidates via LinkedIn, or other tools, send In Mails and make connections continuously from their industry networks, contacts databases, and workforce.
- They use systems and software to simplify your company’s recruitment process and needs for better work production, data protection, and recruitment performance.
- RPO also prepares the candidates before onboarding and sometimes takes responsibility in training them, which consumes a lot of time and workforce which adds up to the financial cost.
And they are doing these within a defined timescale.
AND just like other businesses, RPO companies pay for the salary of their team members and pay for system & software maintenance cost thousands of dollars which add up in your financial cost.
Take note the price of the recruitment service reflects the value that they can bring to your company and there are a lot of more hidden recruitment costs than what is listed above.
Recruitment fees are expensive but if you base it on the results, a business can save more time and money while recruiting the best talents.
To know more information about recruitment costs and processes, visit our website by clicking here.
Add a Comment