The ROI of Hiring through a Recruiter
This guide will help you learn when and why a recruiter might be your best shot for key hires.
In This Guide
Hiring top talent has never been easy, but the challenges of today’s labor market eclipse anything we’ve ever seen before—so what’s a hiring manager or TA team to do?
With countless tactics, sourcing channels, and technology solutions available, it seems like a no-brainer to start with cheap and easy before engaging a recruiter. The obvious choice is not always the strategic choice, however. And there are times when engaging a recruiter is the best choice of all.
In this guide, we cover:
Introduction
Hiring great talent has always been hard. Today, it’s harder than ever.
As we find ourselves at the intersection of the pandemic and the Great Resignation, many organizations are forging ahead with hiring. The current challenge is called “recovery recruiting,” and it’s not for the faint of heart.
The workforce has shrunk and skillsets are scarce. Salary benchmarks are out the window and inflation is throwing us all for a loop. The candidates are in control and competition for their attention is fierce.
And hey, can your hire be fully remote? If you’re not prepared to hire someone who can work in their pajamas, your candidate pool just got a lot smaller.
So what’s a hiring team to do? You can post on all the job boards and hit up your network for referrals and you may have some luck.
But what if your next hire isn’t looking for a job right now? And what if you don’t have time to wait? After all, 95% of business leaders have said it’s very or somewhat challenging for their company to find skilled professionals.
This is where a third-party recruiter comes in.
There’s a reason demand for recruiters has soared in this tight labor market. Although they can be expensive, a vacant seat can have a much higher cost—in both dollars AND impact on your goals and your team morale.
Not only can a good recruiter help you navigate the uncharted waters of hiring in 2022, but they can be one of the best investments you make for your organization.
The Value of a Recruiter
Despite conflicting reports, the Great Resignation shows no signs of slowing down. And talent acquisition teams aren’t immune, since they’re often at the front lines of dealing with the consequences, leading to high percentages of overwhelm and burnout.
In such a competitive talent market where existing recruiting teams are spread thin, it makes sense that so many organizations are turning to third-party recruiters to help fill some of their empty seats.
For a third-party recruiter to be worth the investment, companies need to see more than just cost savings—they need an actual return on the money they spend on a third-party partner. Luckily, ample evidence shows that third-party recruiters can deliver big value.
But first, how do you actually quantify the full cost of a vacancy? It can be difficult to measure the actual impact since the effects usually go beyond the financial numbers. Luckily, there are cost of vacancy calculators available to help give you a baseline on direct costs.
Many business leaders assume the cost of an open role boils down to something as simple as missed revenue opportunities, but there’s a lot more at risk:
Regardless of your existing talent acquisition structure, outsourcing your hiring process to a third-party recruiter is one of the fastest, most efficient ways to prioritize filling vacancies with minimal internal effort.
We talk to hiring teams and recruiters every day, and what we consistently hear is that recruiters bring a multi-faceted return on investment to the organizations they collaborate with:
When to Use a Recruiter
Most organizations have an existing talent acquisition structure—even if that structure is just a one-person team.
But in a tight labor market where many teams are trying to do more with less, a third-party recruiter can complement an existing strategy by filling high priority roles or dividing and conquering a percentage of open roles with an internal team.
Bottom line? There’s no single “right” strategy when bringing in a third-party recruiter. What we do know is companies that work with one get quality candidates, an overall shorter time to fill, and freed-up internal resources.
If you’re trying to narrow down a good starting point for when to actually reach out to a recruiter, think about engaging them when you’re hiring for:
This list isn’t exhaustive, and it’s common for several of these needs to align with yours. A good third-party recruiter can help fill any or all of those roles, freeing up valuable internal time and resources.
Making the Most of an Engagement
Working with a third-party recruiter definitely requires less time than building out a TA organization, but you’ll still want to make sure to proactively dedicate some initial time to set your recruiting partner up for success.
After working with thousands of recruiters and hiring teams, we’ve seen the highest success rates when employers:
There are common misconceptions about outside search—like it’s only worth the price tag for highly skilled executive roles, or third-party recruiters aren’t needed if the company has an existing TA team.
Every day, we help companies identify their true cost of vacancy for open roles and understand how third-party recruiters can fit their hiring needs regardless of their organizational structure or existing resources.
No matter what role you’re looking to fill, a third-party recruiter can save you time and money while securing a high-quality candidate. Isn’t that what recruiting is all about?