Is in-house recruitment really cost effective?

We’re all aware of just how important it is to recruit the right people for the right roles, as ultimately it will affect just how successful a businesses will be. There are two avenues open to businesses who are looking to recruit, the external recruitment agency route or the DIY in-house recruitment approach.

But which offers the best return for your business?

Many smaller businesses opt for the ‘do it yourself’ approach in the belief that they will save money by carrying out recruitment internally. Many employ a full time member of staff to help guide them through the recruitment process. For businesses that only recruit occasionally, this can actually become an added financial burden should the recruitment needs of the business die down after time yet the employee’s salary still needs to be found month after month.

For other businesses, existing staff with little or no recruitment experience find themselves undertaking recruitment related tasks that are both unfamiliar and distract them from their main roles. This not only causes additional pressure on the employee, but can also leave businesses open to the risk of not properly adhering to the multitude of legal guidelines put in place to avoid discrimination when employing new staff members.

Organisations also need to ask themselves if they have the correct skills and experience when interviewing candidates to separate the great individuals from those who fail to impress at interview.

This skill is acquired after many years dealing with face-to-face with candidates as there is so much more to an interview than simply asking questions and judging responses.

Once the interview process has been carried out and the successful candidate accepts an offer (or in some cases doesn’t and it’s back to the drawing board) now comes the settling in stage. Unfortunately, some new hires turn out to be unsuitable or leave unexpectedly, which means the entire process needs to be undertaken again at considerable cost and time to the employer.

A good recruitment agency takes the hard work out of recruiting a new member of staff by leasing closely with the employer to gain a real insight into what it takes to be a successful candidate. Taking down detailed job specifications and creating an engaging advert to closely target exactly the type of person needed for the vacancy is second nature and leaves the existing employees free to carry on with their normal roles.

When applications begin to arrive, the consultant will use their expertise to screen, sift and select only the best candidates and carry out an initial telephone interview to ensure that each applicant meets the specific needs of the client. Face-to-face interviews are then arranged with the support of the recruitment consultant and support given to the employer helping them make the right decision.

On the odd occasion a candidate should accept a job and then leave, a good recruitment agency with a solid reputation for quality will put in place a money back guarantee to protect the interests of their client. This means that the employer will never be out of pocket should a new starter move on without notice.

Although in-house recruitment may seem a cheaper option at first, considering the points above really highlights the risk employers take when opting for a DIY approach to recruitment.

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