Employers - Consider Value Not Cost

Blog Post Published 21st August 2015

Employers – Consider Value Not Cost!

Child counting coins

With any service or commodity it is not the cost that is important but the value.  Cost will always be a consideration but when people buy and they are happy with the value the cost is not important; in fact they often boast about high cost bargains!

Consider cost versus value in the recruitment industry.

A typical fee charged by Success Recruit for helping a business find a permanent member of staff might be 15% of the candidate’s first year salary.  Basing that on a £25,000 salary we would charge £3,750.

There is no denying that £3,750 is a large cost to a business.  But what of the value?

If someone could provide you with a new member of staff that went on to become a great success at your company; would it be worth £3,750?

The answer has to be a resounding yes.  It has to be.

Consider a bad hire on a salary £25,000.  Let’s assume that your business gets off lightly and they leave after a 3-month probationary period.

The cost of that employee is £6,250 in wages, £604.15 in National Insurance Contributions, time invested in the hiring process, integrating them in to the team, other miscellaneous costs such as business cards or even training courses.  That is without even considering the impact on your existing team (and you for that matter!).

And do you know what?  You have to go through it all again.

Does that £3,750 still seem such a large sum of money?

Success Recruit does not hold a magic wand that can guarantee that we will always get it right but we know we provide an incredibly valuable service to businesses that cannot be replicated with cheap solutions.

Our aim is to establish relationships with clients that allow us to learn about their businesses, their people and their environment (watch our video!).  We can utilise this knowledge alongside our own experience and resources to help our clients find people who have the right personality, experience and qualities for their company and the vacant position.

It takes time but so it should; people are the most important thing in every organisation.  Just ask Richard Branson.

One of the most valuable things Success Recruit can do for our clients is to ensure they do not break our golden rule: never hire in a rush.

We believe that our clients should approach hiring with the same strategy as they would any other decision so we encourage them to speak to us before the process begins.  Have you ever started looking at office space before you had any intention of moving?  IT systems before you had any intention of buying?  A new piece of equipment just to find out the cost?

Of course you have.  So why not call one of our consultants today to find out about the value we can provide your business?