The ROI of Recruiting
We talk to hiring managers and prospective clients all the time about why what we do is worth their money. There are several reasons but the short answer is that we save them time. A lot of it. And the fact is that time equals money. This is especially true in engineering and manufacturing, where vacancies, downtime, and production slowdowns can be fatal to organizational success.
Unfortunately, we have witnessed companies that missed out on enormous opportunities, were unable to scale up, or otherwise failed to reach their goals because of bad hiring processes and poor retention rates. Luckily, we have also seen the other side of the coin, when companies realize the return on investment of working with recruiters, get the right people in the right spots, and business positively booms.
The manufacturing and engineering professionals and hiring officials we deal with tend to be highly analytical and understandably concerned about their company’s bottom line. So, we get why they want a solid return on investment. What we don’t get is this: They wouldn’t think of buying anything but the best equipment and facilities and they couldn’t imagine paying for anything less than the best when it comes to software and systems, but they ARE willing to skimp when it comes to hiring the best people. In any business, your company is only as good as your people. #truth
The folks we work with get it but the ones we’re trying to help often get stuck on the initial price tag, aka the fee rate. It’s generally a one-time fee and based upon only the first year's salary of a new hire, yet they fail to see the return on investment because they often (mistakenly) believe they can find the same talent without our help. That’s the first way that hiring an external agency offers a high ROI: CANDIDATE QUALITY.
It is undeniable that a firm like Spectrum offers access to a higher caliber network than an internal recruiter or HR department. You know the catchy cliché, “Your network is your net worth.” Well for us, this is literally true. Our bottom line is directly related to our relationships and as such, we have developed the most qualified, specialized, and diverse pool of candidates around. The majority of people we place are passive job seekers, meaning there is about a 0% chance that they’ll be sucked in by a job board or posting of any sort. If you don’t think finding A players to fill your roster is a solid ROI, stop reading now. Then stop hiring, stop representing your company, stop being in charge of anything business-related… Just stop.
Another obvious advantage of outside recruiters (at least the good ones) is EFFICIENCY. At Spectrum, we pride ourselves on our ability to identify, screen, and submit qualified individuals within a few days of the job launch. Our current YTD average is just under 4 business days, in case you’re wondering. We are dedicated to the recruitment process so our expertise leads to faster, more effective results.
By reducing the time-to-fill positions, you not only reduce the cost associated with vacant positions but also increase productivity. Other employees are often overburdened when a role remains unfilled, which can lead to decreased morale, lower work quality, and a dip in production. A shorter recruitment process results in higher employee morale and engagement, which, in turn, can positively impact the bottom line. Boom. ROI.
When internal HR departments handle recruitment, they often face challenges such as a lack of resources, an overwhelming number of applicants, and a steep learning curve to keep up with the latest hiring trends. However, these challenges can be addressed internally… with boatloads of money.
This is an aspect of the ROI that prospective clients often fail to consider. Along with the cost of hiring someone (onboarding, wages, training, PTO, insurance, benefits, pizza parties, etc.), there are critical and expensive systems recruiters utilize that we pay for (so you don’t have to). For example: a LinkedIn pro account, job boards, advertising, social media marketing, applicant tracking systems, client relationship management tools, access to subscription databases, the list goes on and adds up to tens of thousands of dollars annually. Again, with all of this, there is also an enormous time investment. And, in case you’ve just joined us, time = money.
If it comes down to hiring an internal recruiter vs. an external agency for a handful of hires over the next year or two, the ROI is undeniable. For the sake of simple math, let’s say you want to hire one person each quarter for one year, with an average salary of $80K and an average rate of 25%. You’d pay $80K in fees and almost certainly, almost immediately see business improve. The ROI would be clear within months. On the other hand, you CANNOT hire, train, pay, and properly equip even a single internal recruiter for less than $100K annually. Then what? Turn into a business monster and fire them? We all know they’re among the first to go when things aren’t going great.
With Spectrum, we’re here when you need us and off the payroll when you don’t. Also, as opposed to a single new employee, you get the full force of our entire team: A dedicated, single point-of-contact client manager, sourcing specialists and candidate recruiters who focus on hunting and gathering the best of the best candidates, and administrative and marketing professionals to keep job seekers, us, and you on track and make everyone look good all along the way. We’re the temporary talent acquisition team you wish you could permanently afford.
If you’re in growth mode and your needs are more intensive so you’re looking to hire a lot of people ASAP, the ROI can be even greater. We offer billable hourly plans that can save your company thousands over our contingency contracts. We even have an internal calculator to show you how much you can save using the actual numbers you provide. Tell us what you need and ask us how it works.
Speaking of billable hours, American entrepreneur and author Jim Rohn famously said,
“You don’t get paid for the hour. You get paid for the value you bring to the hour.”
In other words, you’re not paying an electrician a couple hundred dollars for the half hour she spent fixing your wiring, you’re paying her for the years it took to get good enough to do the job so well, so quickly. The same is true of recruiting. We’ve been doing this a long time (nearly a century of combined experience, in case you’re wondering) and we’re damn good at it. EXPERTISE, in any arena, always offers a solid ROI.
Other factors people fail to recognize when it comes to getting the most bang for your hiring buck come AFTER the hire is made. The cost of a bad hire can be crippling. Especially those who stick around. The cost of turnover can be devastating. To your reputation and your finances. Then you’re right back to the cost of that vacancy. Nearly incalculable. It’s a vicious cycle. We can help you break it. You don’t have to do business because that’s how business has always been done. You can do better. You are better. You deserve better. Affirmations.
Oh, and in case you can’t do better and blow it right off the bat, we offer freaking guarantees. That’s right, depending on the contract and the situation, most recruiting agencies offer some sort of money back, replacement, or other arrangement to assure that an immediately obvious bad hire doesn’t bring your business down.
“Wait! You offer guarantees plus your contingency contract means we don’t pay a dime until we make a placement?!? That’s bonkers! Talk about a crazy good ROI!”
That’s right. Crazy for us, good for our clients.
So, how does it work? Where’s OUR return on investment?
Simply put: we deliver.
When you invest in us, we invest time and energy in you, your company, and the roles to be filled. We get to know the requirements, the job, and the culture better than anyone to ensure a long-lasting, quality fit. Your team finds themselves with time to do their actual jobs (GASP!). And, in the end, the ROI is clear for both sides.
In nearly every realm, return on investment can be difficult to quantify in advance but when it comes to recruiting, we actually guarantee you’ll see it. You’ll see it on the faces of your employees, you’ll hear it from stakeholders, you feel it in the air, and it’ll be reflected in the bottom line.
But don’t take our word for it. See what our clients have to say.
We’ll do the recruiting, you do you.
If you’re open to exploring new opportunities rather than hiring, check out our job board here.
You can now choose to receive this HIRING MANAGER HACKS newsletter every other Wednesday, our NEW JOBS NEWSLETTER on alternating Wednesdays, TOP TALENT candidate spotlights every Tuesday, or ALL OF THE ABOVE.
ENTER YOUR EMAIL ADDRESS HERE to sign up or update your preferences.
Tags: Spectrum Recruiting Solutions, utah manufacturing recruiters, utah engineering recruiters, utah recruiters, roi of recruiting