The cost of time

The first factor to consider is the time it takes to manage the recruitment process internally. From crafting the job description to screening resumes, conducting interviews and finally onboarding the new hire, the process can be time-consuming. Let’s say a manager spends 30 hours on the recruitment process. If their hourly rate is $80, that’s already a $2400 investment. And this doesn’t even take into account the opportunity cost – the time the manager could have spent on other revenue-generating activities.

Lack of expertise

Unless your business has a dedicated talent acquisition team, chances are your managers aren’t recruitment experts. They may not be familiar with the latest recruitment strategies or know where to look for the best candidates. This lack of expertise can lead to suboptimal hiring decisions, which can be costly in the long run.

Restricted talent pool

When managing recruitment internally, businesses often rely heavily on job boards like Seek. While these platforms can be useful, they only provide access to active job seekers. This means you’re missing out on a large pool of passive candidates who may not be actively looking for a job but would be open to the right opportunity. Recruitment agencies, on the other hand, have extensive networks and databases of candidates. They can tap into this resource to find the best fit for your business, going beyond those who’ve applied to your job ad.

The true cost of a bad hire

Finally, it’s important to consider the cost of a bad hire. If a manager lacks the expertise to effectively screen candidates, there’s a higher risk of making a poor hiring decision. The cost of hiring wrong, underperforming individuals can range from 30% to 150% of their yearly salary. This non-cash expense is often overlooked. Unless you’re a HR expert, you might not realise how much profit is lost with each poor hiring decision. For SMEs and startups, these decisions can make or break your success. But why is the cost of bad hires so high? Consider the time spent on screening, interviewing and onboarding. Add the overheads of employment, the disruption caused by a poor performer and any potential severance pay.

Mansfield & Co Recruitment – your trusted partner in the recruitment process

While engaging a recruitment agency may seem like an added expense, the true cost of managing the recruitment process internally can be much higher. By outsourcing recruitment to experts like Mansfield & Co, businesses can save time, tap into a wider talent pool and reduce the risk of costly hiring mistakes. It’s an investment that can pay off in the long run. Remember, the goal isn’t just to fill a vacancy – it’s to find the right person for the job. And sometimes, that requires a little help from the experts. Mansfield & Co Recruitment stands as Adelaide's reliable recruitment specialists, providing local expertise, personalised service and outstanding outcomes in linking businesses with top-tier talent. Our recruitment team is dedicated to supporting the Adelaide community and our commitment is evident in our strong South Australian focus.

Mansfield & Co Recruitment – proven results

At Mansfield & Co Recruitment, we possess a deep understanding of the local landscape, demonstrated by our proven results and satisfied clients. Our team comprises highly knowledgeable and professional individuals who genuinely comprehend current and future workforce trends. This ensures that the talent we recruit is not only an excellent fit for your organisation now but also in the long term. We connect talented individuals with their dream jobs while providing businesses with the tools they need to build exceptional teams. The future of recruitment is here, and our award-winning recruitment agency is excited to be part of this transformative journey. Join us as we navigate the future of employment, where innovation meets opportunity. Are you looking for work? Explore our job vacancies here. Visit our website to find out the roles we specialise in. You can also check out our candidate profiles and Facebook page. Let’s build a stronger, more effective team together.

References

https://www.forbes.com/sites/forbeshumanresourcescouncil/2022/03/10/the-real-cost-of-bad-hiring-decisions-and-how-to-avoid-making-them/?sh=327c25b15dac

https://www.forbes.com/sites/forbesbooksauthors/2024/03/20/the-cost-of-executive-mis-hires-and-how-to-avoid-them/?sh=690b65de187d