Recruitment and selection agencies are often seen as expensive. Is that true? Perhaps it might be interesting to look at the value of a really good match.
When I read the comments on the Internet, the image of recruitment & selection agencies is: they present some candidates, one of them gets the job and voila, a fat invoice in the client’s mailbox. 20 to 25% of the newly recruited candidate’s annual salary is no exception. That same candidate has to work 2 to 3 months for that. Isn’t that a bit out of proportion?
What labor does a placement agency perform for this purpose? The following applies to WerfSelect. First, in consultation with the client, we sharpen the profile of the employee sought by examining the question behind the question. What is the ambition of the company and the team for the coming years, what keeps the manager awake? So that we start recruiting someone who can really make a difference. On this basis, we make a scorecard so that candidates are assessed on clear grounds.
We have a relevant network covering tens of thousands of people, built up over 18 years and nurtured daily. They are our eyes and ears in the market with whom we track down the very best-suited candidates. We select all responses, do a telephone interview and then an in-depth personal interview. The client need only make room in their calendar for introductory interviews with the best-fit candidates.
In theory, the client could also do the above themselves. However, the practice is that line employees are hired for a different purpose and profession. HR staff are usually consumed by numerous other priorities, including caring for current staff. In addition, the placement agency is usually rewarded largely on results, while HR staff salaries are paid anyway. Outsourcing to a specialized and focused party thus guarantees success without having to take major risks.
What is actually the cost of a bad match? A “bad” hire can quickly cost a company at least a ton. First of all, the salary during the period that the candidate has the chance to prove himself. In addition, colleagues and management put precious time and energy into getting this person up to speed. A pointless investment afterwards. Indeed, it produces demotivation among colleagues. But above all, it puts them six months or a year behind their competitors who did hire the right person.
So more interesting than looking at cost is to look at the value of a good match. The other day, one of our clients said that he had heard that an outstanding A-player can be three times the value of an average employee. And that he first saw this in practice with the sales director we placed. She opened doors at major international retailers which tripled the company’s sales in a short time. What a boost their sales got, but also the motivation of the rest of the team! Not in every role will this effect be so directly measurable but I dare say that the assumption of a “perfect match” can give a company a huge competitive edge.
Looking at it this way, what do you think of the fee of brokerage firms? A pittance compared to the value, right?
by Annelies Ruis
