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Employers could save a fortune in recruitment fees with a little DIY and creativity


New research from Consult Inhouse has found that companies with up to 250 employees spend an average of £116, 545 a year on recruitment fees despite there being many routes now to shave £’000s off an annual recruitment bill.


 


Companies with 1,500 employees spend c£699,270 whilst one with 5,000 staff may have an annual recruitment cost of over £2 million.


 


Separate analysis has found that the average recruitment fee for a single permanent placement paid by a SME firm increased by 6.4% in 2018 to £4,238. This suggests that employers are clinging to outdated methods of hiring when new options are available which would save 80% of that cost.


 


It is assumed that employers continue with outmoded practices because they ‘don’t want to get their hands dirty’ contacting and filtering candidates themselves but prefer to pay hefty fees for a third party to do this work.


 


“There is a cost effective alternative,” says Keith Simpson of SkilledPeople.com which specialises in sourcing skilled, experienced candidates aged over 50 for companies in all industry sectors. “Jobsites like SkilledPeople have been extending their services to cover more conventional recruitment activities such as candidate screening, initial interviewing, quality control and short-listing but at much lower cost because they already have huge databases and low overheads.”


 


“For example, instead of spending over £4,000 per hire a service like SkilledPeople would charge c£600,” continues Simpson. “It simply calls for in-house HR and Talent professionals to think outside the box and test a range of alternative lower cost solutions.”

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