Cost of recruitment – what does it mean?

Often the true cost of recruitment on a business is hidden.  It’s a combination of several things.  One of the latest UK stats I found was a guesstimate of over £30K!

http://www.hrreview.co.uk/hr-news/recruitment/it-costs-over-30k-to-replace-a-staff-member/50677

The two main factors that support this research is:

  • The Cost of Lost Output while a replacement employee gets up to speed
  • The Logistical Cost of recruiting and absorbing a new worker

On top of the cost and inconvenience to a business of advertising, sifting, shortlisting, interviewing, feedback, employment documentation – contract of employment, right to work in the UK etc and the ‘new joiner’ processes – raising a new profile for IT, issue a laptop/phone etc is the cost of the recruitment agency.

 

Average percentages of fees to be paid to an agency are:

Salary                                                   %                                Fee due

£15K                                                        14%                                  £2,100

£20K                                                        18%                                 £3,600

Over £20K                                               20+%                             £4,200

 

Using this method, apart from the cost, you won’t know if you’ve made the right choice until they’ve been onboard a while and are trained in the job.

 

With Growing Talent, a unique fee way of finding and growing new talent, you will be confident of your new hire as you train them in situ before hiring.  What could be simpler?

 

 

 

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