How much should I pay for recruitment?
Posted on 12th April 2021 at 15:45
With the UK coming out of lockdown companies are starting to look at some of the vacancies that they may have put on hold to start recruiting new staff. You may be asking yourself - What are typical recruitment costs that I can expect to pay? What options do I have for recruitment?
Whilst there are fluctuations across different industries, typical recruitment costs are between 15 – 20% of your new employee's basic take on salary, if you use a recruitment consultancy or a recruitment agency to recruit. This is usually payable once the candidate has started their new role. There are no upfront costs, and therefore the risks are low – it is the standard “no win, no fee” model. For this, the agency will have looked at their pool of candidates and given you access to the ones that they think are most suitable to the position for which you are recruiting. They will sell the opportunity to the candidates on your behalf and they will also liaise between you and the candidate for booking interviews and should make sure that the candidate is fully briefed before an interview.
If you take someone on, the costs to you are relatively high – and one of the reasons for this is that recruiters know that they won’t fill all of the roles that they are working on. They charge more to those companies that they do place people with as they are not making any money from those that don’t take their candidates on.
What about other options?
Recruitment Process Outsourcing (RPO) is a business model where a company outsources the whole or part of the recruitment function to a third party. This model will save organisations lots of money on their recruitment compared to using recruitment agencies or consultancies. It is often viewed as the viable option for larger organisations, but what about the SME market?
Emerald Starfish is an RPO provider that only works within the SME environment (1 – 200 employees) Our recruitment costs are based on the time it takes to find the right candidate rather than a placement fee. The basic package starts from under £2500 + VAT and this includes:
Our branded advertising package to attract the best candidates, including running social media campaigns.
Writing the adverts to appeal to the right candidates to encourage them to apply.
All CV sifting to determine the best candidates for your role.
First stage interviews so that we are confident that all candidates presented can do the role.
All associated rejections, feedback and interview administration.
You can also add in other services such as headhunting or executive search costs, which are charged at a daily rate if you are looking for a particular experience, expertise or skills. We also offer psychometric testing to check the profile of candidates to look at team fit and support at the interview stages to ensure that your managers can spot the best candidate.
Whether you choose a recruitment agency or an RPO solution will depend on whether you want to see a pool of candidates quickly with no risk, or whether you want to work in partnership with an organisation that fully understands your recruitment needs and can add the expertise that you want to make sure that you are bringing the best people into your organisation.
If you want to find out more about Doing Recruitment Differently or see our full price list, please click on the link and we will be in touch. Or alternatively call 0116 2080246 for a quick chat to see how we can help you.
Tagged as: Headhunting costs, how much should I pay for recruitment?, recruitment costs, typical recruitment costs
Share this post: