I am frequently asked by prospective clients “What is the real ROI in using the services of a recruitment agency?”
In the prevailing economic scenario here in the Middle East, where every company is pushing to better the bottom line, looking to mitigate overheads and seeking justification on any budgetary spend, including “hiring the best talent”, how do I address my clients concern on the fees well spent, ensure confidence in the value of using the agency’s recruitment services, mitigate any cost fall out resulting from a bad hire or delayed hiring and in the end look at a win-win situation for both parties concerned, a great talent hire for the client and the commensurate fee for the agency.
Value perception, is my take on this subject. People understand the value of money well spent. When we waste money on something we feel we did not gain from, this causes backlash and feelings of resentment. What backlash will a cost of a bad hire be for you as a company? What is the tangible loss in delayed hiring? What is the cost of a disengaged employee?
While it is daunting task to examine and peg down the “real cost” or loss of productivity, a recent Gallup Inc. research estimates 22 million actively disengaged employees or those not really interested in their work, cost $ 350 billion per year in lost productivity.
This is where companies need to look at bringing in specialist or experienced recruitment experts to help reduce this loss, while partnering with them effectively to hire the most appropriate talent resource for their organization.
The real value generated for companies in terms of a top talent hire through an Agency far exceeds the “agency fee”. This will be in terms of improving the top and bottom line, building competitive advantage in the market through highly resourceful talent hired and building a repository for a good leadership pipeline for the future.
The question should not be “What is the real ROI in using the services of a recruitment agency?” but rather “How much ROI will our company gain from your expert services in the long term”.
If you would like to know more about our services and how we can provide a “real ROI” contact me at clarissa@personnel-connect.com
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