How to find Lowest cost recruitment
Lowest cost recruitment means many things to many business owners. For some it means minimum out of pocket cost by doing it yourself (DIY) and for others it means doing it through a third party or agency for the cheapest out of pocket cost. For others it is not about cost but about the value that the right person will bring, such that the value added far outweighs the cost of acquiring their expertise. The cost measured here is the difference between the value added less the cost of the hire. Lets look at all 3 options.
DIY lowest cost recruitment
Do it yourself lowest cost recruitment is common for businesses that are very bottom line focussed and believe they can get the best personnel themselves, or don’t want to pay an agency, or who may have had a bad experience outsourcing in the past. There are many downsides to DIY and they include not accessing the widest available field, not tapping into the insight that expert recruiters can bring, no service guarantee and no replacement guarantee.
Agency lowest cost recruitment
Some firms will engage multiple agencies to get a “spread” of expertise yet only pay the firm that delivers them the successful candidate. The client can often negotiate a reduced percentage or fixed fee with all firms who compete in the same space. On the surface this can work well because only one firm gets paid, but scratch below the surface and what really happens is the agencies compete based on speed to get as many candidates submitted to the client (the contingency model speed race). This doesn’t allow for quality recruitment processes, meaning that the client gets the first candidate but not necessarily the best.
Value lowest cost recruitment
So, DIY and Agency lowest cost recruitment model both come with their pros and cons. So how can we eradicate the parts we don’t want and combine the best of what we do want? To recap, we want to get the best available and quality candidates at minimal cost of your time, using agency expertise, delivered at the lowest possible cost to you and with a service guarantee and a replacement guarantee. The answer lies in restructuring the traditional recruitment industry model and not tweaking existing processes, but coming up with a solution that answers the problems posed above. In essence, it means blowing it up and starting from scratch. It means creating a service that delivers expertise and quality while saving your time and the high costs of traditional agency recruitment. At 1300Hired we posed these questions with a respected & leading consultant and what we came up with was a wishlist from which we created a business that:
- Eradicated part or all of the DIY model
- Eradicated the contingency model / speed race
- Provided agency expertise in advertising, sourcing and recruiting
- Delivered the best available candidate to Clients at the lowest possible price
- Provided a service guarantee
- Provided a replacement guarantee
For more information on lowest cost recruitment, and how this model can deliver value to your business, call us on 1300 447 330.