Still relying on a low-tier recruiting agency to bring top talent to your team?
When you sacrifice quality to save a few dollars, it doesn’t take long to realize that you get what you pay for.
Recruiting agencies set their fees based on the systems, tools, and technologies they have in place to help you find and hire the exact personnel you need.
If you’re sticking with the lowest-priced one, you could miss out on some of the most innovative and advanced recruiting solutions on the market. Meanwhile, the employee you need just signed with a competitor.
Today, we’re sharing a few of the risks you incur when you prioritize fee structure above any other factor when comparing recruitment options.
Ready to learn more? Let’s dive in.
Low Fees Equal Slow Process
In industries such as manufacturing, engineering, and construction, project deliverables and customer expectations can change in an instant. You need the ability to hire team members as quickly as possible.
If a recruiter is able to deliver precisely the talent you need in a short timeframe, you’re able to meet the demands and requirements of your job. This helps secure customer satisfaction and encourages repeat business.
However, the opposite also holds true.
An agency might not charge you much in terms of fee structure, but take months to find someone to fill your role. Even then, that employee’s qualifications might not be an exact match to your needs.
In the meantime, clients are growing frustrated, your existing team members are stretched too thin and the project itself is starting to suffer. When comparing the fees of various recruitment agencies, you might believe you can’t afford to pay what top-tier providers charge but ask yourself this question:
Can you afford to lose valuable, lucrative business instead?
The economic impact of an unsuccessful contract can be devastating, especially to a small business. In addition, there’s an inherent cost of delay incurred if you’re unable to complete a project by a given date. If you’re going to compare numbers, be sure to include these, too.
The Best Talent Goes Quick
Research shows that the top 10 percent of job candidates will accept a job offer within 10 days.
As soon as an in-demand candidate enters the job search field, they’ll be inundated with offers, interviews and benefits packages. They don’t have to stick around for weeks or months and play the field. They’ll receive some knockout opportunities right out of the gate.
If you’re still spinning your wheels and relying on a low-budget recruitment agency to get the job done, it’s likely that you’ll miss out on your chance to add your offer to the mix.
Why? The best candidates aren’t hanging out on job boards.
They’re sharing their resume on niche sites, networking on social media, and making personal connections with business leaders. When you partner with a recruiting agency that has insider access to these kinds of resources, you can get in on the ground level, communicating with prospects before they even begin their formal job search.
Open Positions Leads to Productivity Losses
If your current recruiting agency isn’t bringing in the talent you need, those positions will continue to stay open. This means your current workforce has to work twice as hard to pick up the slack and keep up with day-to-day demands.
This environment isn’t only stressful. It’s also incredibly expensive.
Take the technology industry, for instance. One study estimates there are more than 260,000 unfilled jobs in this sector, adding up to a collective $20.1 billion in lost work.
In addition to the direct costs you’ll face as a position remains vacant, you’ll also need to factor in the greater business impact. With a critical opening on your technical team, you could also face the following challenges:
- Buggy, compromised software
- Delayed product releases
- Greater wait times for technical support
All of these issues negatively impact customer satisfaction, leading to lost revenue and lost profits alike. It can also damage your brand’s reputation and impact long-term customer loyalty.
Inefficient Practices Lead to Higher Hiring Costs
If you’re the first person to approach a prospective hire with a dynamic offer, there’s a chance that he or she could accept your initial salary with little to no haggling. However, if your recruiting agency drags its feet and delays the process, that gives your competitors more time to swoop in and make multiple counter-offers.
Before long, there are multiple firms bidding against each other to win over the candidate. As expected, the candidate’s salary demands grow as their true value is revealed. Suddenly, your initial numbers aren’t as appealing anymore.
If you’re able to identify and connect with prospects before the competition learns of their availability, you can keep hiring costs as lean as possible. Give it a few days, however, and you could be outpriced and outpaced by your peers.
Your Reputation is at Stake
Have you ever considered what your hiring process says about your company culture?
It doesn’t take long for a business’ inefficiencies to become common knowledge. If you’re constantly approaching job candidates without a defined strategy and then putting them through a drawn-out, laborious hiring process with little to no communication, that’s something people remember.
It’s also something they talk about.
In today’s digital age, it’s only too easy to share experiences across social media, email, and other online platforms. As a result, the conversation surrounding your company can turn from positive to negative in a heartbeat.
Research shows that 71 percent of U.S. workers won’t apply to a company that has a lot of negative press. You could offer the highest salary in the world and benefits that are more than competitive, but your reputation speaks louder than numbers.
You’ll Pay Hidden Costs
Sure, you can partner with a job placement agency that charges next to nothing to help you bring in qualified candidates. However, when those candidates turn out to be unqualified, inexperienced or both, you’ll ramp up hidden costs in no time.
Consider the time it takes your HR managers to sift through irrelevant resumes or conduct an excessive number of interviews. The same goes for any employees you ask to help out during the process, as well as the managerial oversight required.
You might not factor these costs into your standard “cost-per-hire” calculation, but they exist nonetheless.
When your current employees are always away from their desks to assist on hiring duties, their own productivity wanes. In turn, your costs rise as they work overtime or take on extra assignments.
Why It Pays to Find the Best Recruiting Agencies
An efficient staffing and recruiting practice is one of your company’s top assets and greatest strengths. When you’re confident that you can fill any opening with some of the best talent around, that’s a load off your shoulders you can’t measure.
This becomes even more important if you’re at the helm of a tech-centric industry, such as engineering or supply chain management. The tools that define these roles are constantly changing and becoming more sophisticated. You need quick access to candidates who are skilled in the latest applications.
Our premium fee structure reflects the dedication and commitment we bring to every partnership. We have teams in place to help your organization fill roles in the following sectors with ease:
- Supply Chain Management
Rather than throwing your job description against the wall and seeing what sticks, we take a full lifecycle recruiting approach. This means we’ll take the time to thoroughly understand your business and recognize what makes it unique. Then, we’ll get to work finding and recruiting the top talent you need to help your teams thrive.
In addition to technical skills, we’ll also assess each candidate’s personality, talents, and goals to make sure they align with yours and will make a great fit. Our proprietary recruiting process goes past the job board and isolates the exact personnel you’re looking for.
Quality Hiring You Can Trust
A strong, capable and loyal workforce is your company’s greatest asset. It’s worth more than even your highest-priced equipment or your sprawling office building.
To that end, it pays to find the best recruiting agencies you can to fill your vacancies. Leaving those positions open too long can open your business up to a host of vulnerabilities. These will end up costing way more than any recruiting service ever could.
As it is with most things in life, the lowest offer isn’t always the strongest. Rather than over-prioritizing recruitment fees, take into consideration the overall value that the agency will deliver and use that to guide your decision.
When you’re ready to head straight to the top with the strongest team in town, let’s connect.