There are many reasons why recruitment can be extremely expensive, and it often depends on the type of individual you’re looking to recruit. There are some considerable reasons we’d like to go through first, such as advertising costs, in-house recruiters’ salaries, third-party recruiter fees, travel expenses, sign-on bonuses, and employee referral bonuses. For certain high-level jobs, there may be employee relocation costs, as well, so there can be a lot to factor in. In many cases, these costs are far less than the cost and overall impact of making a bad hire, and that’s exactly what traditional recruitment agencies pride themselves on. They use traditional and modern tactics to find individuals who are going to come in and be long-term employees. Employees who not only fit the brief but are dedicated and driven to develop inside your business, helping drive you forwards. With low cost recruitment there may the an argument that there is greater risk of a bad hire, because the cheap recruitment companies are probably not interested in vetting the applicants, and are merely looking to bring in a large volume of CVs for you to flick through, hoping your find the right individual.
What does a ‘bad hire’ mean for your business?
Let’s say you feel as though you’ve found the right individual and you’re 100% happy with your decision, what would happen should the individual you’ve chosen not show up on their first day or leave after just a few days in the job? There are so many reasons, personal and professional, where an individual may have taste of the company and how it works, only to be put off or no longer interested in the role. For many, the grass is not always greener, and some individuals don’t know they are not ready to make the leap until they’re in the new job. You can say this is naive, but it does happen quite frequently, meaning the company recruiting is left with a dent in their wallet, whilst they are still missing a crucial employee.
A bad hire could mean the business becomes less productive and has also lost a lot of time to recruit or train another worker. They are also probably going to see the morale of their team negatively affected, whilst their customers may even feel this negative impact, whether that be when ordering or conversing with the employees of the firm. So this can actually be a vicious and expensive and rather vicious circle where money is spent for no reward at all. So while we agree with the fact that there are legitimate reasons why recruitment can be costly, for most business out there it’s simply not necessary to fork out thousands of pounds to recruitment agencies and it’s a relief to see many more affordable options out there, especially for small businesses who are looking for one or two individuals to help take them to the next level.