Is recruitment worth the price – or should you do it yourself?

What does it cost to recruit yourself?

Recruiting internally may seem like the cheapest option – on the surface. But when you factor in the time spent designing job advertisements, reviewing applications, interviewing candidates and conducting background checks, the picture changes.

Every hour you spend on recruitment is time taken away from your core business tasks. It’s called opportunity cost – and it can quickly become an expensive business if you don’t have the right tools or experience. What’s more, if the process leads to a recruitment error, the actual cost can be significantly higher than if you had chosen to use external experts from the start.

The risks of getting it wrong

According to several studies, a recruitment error can cost anywhere from 500,000 to over a million euros, depending on the level of the service. This includes everything from lost productivity to the cost of terminating an employee and starting the process again. For small and medium-sized enterprises, this can be a financial blow that is difficult to recover from.

What does a recruitment agency offer – and is it worth it?

Hiring a recruitment agency means you are paying for their expertise and network. They can often find the right candidate faster than you can, thanks to their experience and resources. But it is important to weigh these benefits against the cost. Is your business in a position where it is worth outsourcing, or do you have the time and capacity to manage recruitment yourself?

Advantages of using a recruitment agency:

Time saving: The process is faster, reducing the time a role remains unmanned.

Established networks: Most recruitment agencies have established contacts with candidates like the one you are looking for as they have often (not always in the case of specialist recruitment) carried out similar recruitments in the past. This will put you in touch with candidates you might not otherwise have reached.

Specialized expertise: You get a recruitment specialist to support you through the process of finding your new employee. From knowing what questions to ask yourself to review the real need for the role to knowing what questions to ask during the selection process to ensure you get the best possible candidate for your organization.

Reducing the risk of recruitment errors: Recruitment agencies have access to tools and tests that can improve selection. Through careful selection processes, they can minimize risks.

Recruitment guarantee: If things go wrong, many (including us at Unik Resurs) offer a guarantee that means we will redo the recruitment if, for example, the candidate chooses to leave within a specified period of time. Talk to your recruitment company to get information about their terms.

But there are also potential drawbacks:

Cost: Fees can be high, especially for specialist roles.

Control: You are leaving a large part of the process to someone else, which does not always feel right for all businesses.

Is it more expensive not to recruit at all?

Another aspect to consider is the cost of leaving a role unstaffed. If you have to turn down business because you are short-staffed, the lost turnover is a direct loss. For many businesses, this is a much greater cost than the price of recruitment.

Add to that the difference between hiring an average performer and a high performer. Studies show that a high performer can generate several times more value than an average employee. So choosing the right candidate is not just about filling a vacancy – it’s about creating long-term value for the business.

How do you know which option is best for your business?

The choice between recruiting yourself and using a recruitment agency depends on several factors:

Your time and capacity: Are you able to devote time to the recruitment process without negatively affecting your business?

The complexity of the role: The more specialized the role, the more challenging it is to find the right candidate.

Your budget: Can you justify the cost of a recruitment agency, or is it more important to keep spending down?

Whichever option you choose, it is important to use effective methods and make decisions based on data and evidence.