Is It Cost Effective To Use A Recruitment Agency?

Here are 4 questions to ask yourself to see if it would be better to use the services of a recruitment agency or look after the hiring yourself.

1) How much does it cost not to use an agency?

Firstly you must consider how much does recruitment cost your department/organisation.

• You need to ask how much does your organisation spend on advertising?
• Is this advertising reaching its primary target audience?
• Is this advertising effective- are you attracting the right candidates for the roles?

2) What resources are involved?

You need to ask how much people resources go into organising, screening and responding to the advertisements before there is ever a shortlist drawn-up of who would be suitable to interview?

When you have a shortlist for interview, how many further resources does it require to organise the interviews, test the candidates etc?

3) What is the time commitment?

You must ask how much time overall does this process demand.

4) What is the opportunity cost?

Finally, you must question could this time and the majority of these resources be deployed effectively elsewhere in your department and whilst your recruitment needs are taken care of?

The answer is invariably ‘yes’ and the path to this successful management of limited resources whilst providing an effective function is to utilise the services of a recommended recruitment agency.