Think Inside, Act Outside: Uncovering the Hidden Costs of Internal Recruitment
• Internal average cost to hire is £15,000, increasing to £18,000 if hiring the wrong person
• Recruitment processes require significant time investment, including resources for CV screening, calls and interviews, which can divert attention from revenue-generating activities. External recruiter fees range but comparable average about £6,000
• The time to hire internally averages 11 weeks, with a good agency 3.5 weeks to fill offering increased productivity
• Studies by CIPD suggest internal recruitment has an estimated 70% rate in filling vacancies, which may lead to longer hiring processes and increase operational costs- the right agency will fill 95% plus of all roles.
• Outside recruiters have access to a broader talent pool, including 80% of candidates who are not actively job-seeking
• Mitigate the opportunity costs associated with prolonged vacancies, leading to more timely and efficient hiring
• Internal recruitment often limits access to a smaller talent pool, potentially reducing the chances of finding ideal candidates
• Advertising and branding efforts are typically handled internally, incurring additional costs for job boards and marketing campaigns
Ultimately, choosing the right strategy depends on your business needs and the urgency of filling roles. By understanding both the costs and benefits of internal recruitment versus using an agency, you can make more informed decisions that support your company’s growth and efficiency.