The Real Cost of Recruiting: Why Engaging a Recruitment Agency is a Smart Business Move

Recruiting new talent is a fundamental aspect of business growth and development.

However, the process of finding, vetting and hiring the right candidates is often resource-intensive and can place significant strain on a business.

By exploring the true cost of recruitment and the benefits of partnering with a recruitment agency, businesses can make informed decisions to optimise their hiring processes and mitigate operational pressures.

The True Cost of Recruiting

Recruitment isn’t just about posting a job ad and waiting for applications to roll in. It involves a complex and often costly series of steps:

1. Advertising and Job Boards: Posting on popular job boards and industry-specific sites can quickly add up. Premium listings, featured ads and sponsored posts increase visibility, but come with higher price tags.

2. Time Investment: The time spent by HR and management teams in crafting job descriptions, reviewing resumes, conducting interviews and communicating with candidates is substantial. This time investment translates directly into financial costs, as these hours could be spent on core business activities.

3. Screening and Assessment: Background checks, skills assessments and personality tests are essential to ensure candidate suitability. These services often require external vendors, adding to the overall expense.

4. Opportunity Cost: The longer a position remains unfilled, the greater the impact on productivity and, potentially, revenue. Delays in hiring can stall projects, overburden existing staff and lead to burnout and reduced morale.

The Strain on Business Operations

The recruitment process can strain a business in several ways:

• HR Overload: For smaller companies, the HR team may already be stretched thin – managing payroll, benefits and employee relations. Adding the recruitment process can lead to burnout and decreased efficiency.

• Management Distraction: Leaders and managers need to be involved in the hiring process to ensure candidates align with company goals and culture. However, this involvement can distract them from strategic decision-making and other critical tasks.

• Inconsistent Hiring Outcomes: Without dedicated recruitment expertise, the process can be inconsistent – leading to suboptimal hires. This can result in higher turnover rates, which, in turn, repeat the cycle of recruitment costs and operational strain.

Why Engage with a Recruitment Agency?

Partnering with a recruitment agency can alleviate many of the costs and pressures associated with hiring. Here’s how:

1. Expertise and Efficiency: Recruitment agencies specialise in identifying and attracting talent. Their expertise ensures a more efficient process, reducing the time to hire and increasing the quality of candidates presented.

2. Cost-Effective Solution: While there is an upfront cost to engaging an agency, it often pales in comparison to the cumulative costs of a prolonged, in-house recruitment process. Agencies streamline the hiring process, minimising downtime and lost productivity.

3. Access to a Wider Talent Pool: Agencies have extensive networks and databases of pre-vetted candidates.

4. Mitigation of Hiring Risks: Agencies often provide guarantees, offering replacements if a hire doesn’t work out within a certain period. This reduces the risk associated with recruitment and provides peace of mind.

5. Focus on Core Business Activities: By outsourcing the recruitment process, businesses can focus on what they do best – driving growth, innovation and serving their customers. This delegation can lead to better overall performance and employee satisfaction.

Recruitment is a critical but costly and time-consuming process. The strain it places on businesses can be significant, impacting productivity and growth. By partnering with a recruitment agency, businesses can leverage specialised expertise, reduce costs and ensure a more efficient and effective hiring process. In the long run, this strategic move can lead to better hiring outcomes, improved operational efficiency and a stronger, more focused organisation.

New Zealand Budget Summary, 2024-25

Plenty of winners but some losers in ‘back to basics’ Budget.

Key points

  • Unemployment to peak at 5.3%
  • Economy to contract in 2024 before strengthening in 2025
  • Apprentice Boost eligibility narrowed
  • Skills programs cut, infrastructure boosted

The first Budget of Finance Minister Nicola Willis has foreshadowed a period of severely constrained economic activity and higher unemployment.

The outlook suggests there will be difficult times ahead for the rest of 2024, before conditions gradually improve over 2025 and beyond.

The focus on achieving Budget savings has seen cuts to skills and training programs that were introduced by the former government.

Funds are going into areas such as transport, infrastructure and tax cuts, where it is intended that spending will boost economic activity.

To access our full budget summary, simply fill in your details below.

New Zealand Budget Summary, 2024-25

Unless stated otherwise, information was sourced from the Budget 2024 documents, ministerial statements, media releases and portfolio papers:

This is general information only and should not be taken as constituting professional advice from Programmed. Programmed is not a financial adviser. You should consider seeking independent legal, financial, taxation or other advice to check how the information relates to your unique circumstances. Programmed is not liable for any loss caused, whether due to negligence or otherwise arising from the use of, or reliance on, the information provided.

Together, Programmed and PERSOLKELLY are the leading providers of staffing, operations and maintenances services across Australia and New Zealand – and one of the largest workforce solutions providers in the APAC region.

From market-leading staffing programs, to advanced people management, innovation and technology, we support your business to navigate and stay ahead of the rapidly changing world of work. 

Together, our experienced, capable team of problem-solvers will help you achieve more.

Navigating Your Career Path with PERSOLKELLY’s 2023-24 Salary Guide

In an era defined by economic shifts and global uncertainties, job seekers are faced with unique challenges.

The PERSOLKELLY 2023-24 Economic and Employment Key Insights and Salary Guide is your job-seeking compass, guiding you through the intricate maze of career choices and salary landscapes.

Here are seven ways this comprehensive guide can be your ultimate tool for making informed decisions and securing the right job in a rapidly evolving employment market:

1. Navigating the economic waves

  • Understand the impact of inflation and geopolitical instability on job markets globally.
  • Gain insights into how these factors influence salary trends across industries, helping you align your expectations with the current economic climate.

2. Decoding the Australian and New Zealand job markets

  • Explore the economic slowdown in Australia and New Zealand, and its direct impact on job opportunities.
  • Leverage information on changing government policies to identify sectors with burgeoning job prospects.

3. Tailoring your job search strategy

  • Uncover the challenges organisations face in talent acquisition and position yourself as the solution.
  • Use our Salary Guide to align your skills with industry needs, making your job search more targeted and effective.

4. PERSOLKELLY’s 2023-24 Salary Guide: Your personalised resource

  • Discover how the guide compiles salary data from industry experts, offering a detailed breakdown across various sectors.
  • Access tips and tricks tailored for candidates, providing insider knowledge on securing the right job in a competitive market.

5. Industry insights for informed decision-making

  • Gain a comprehensive understanding of salaries in your desired industry, enabling you to negotiate effectively during job offers.
  • Utilise real-time statistics to benchmark your salary expectations against industry standards, ensuring you receive fair compensation.

6. Your job search companion: Tips, blogs and stats

  • Explore the guide’s supplementary resources, including tips and tricks for acing interviews and standing out in the job market.
  • Stay informed through blogs and statistical insights, empowering you with the knowledge needed to navigate the evolving landscape of employment.

7. Building your future with PERSOLKELLY

  • Embrace the Salary Guide as more than just a tool – it’s your companion in making strategic career decisions.
  • Utilise the guide’s holistic approach to understanding salaries, industries and job market dynamics, ensuring you’re well-equipped to shape your professional future.

Embark on your job search journey armed with the insights and resources provided by PERSOLKELLY’s 2023-24 Salary Guide.

From decoding industry salaries to mastering the art of job interviews, this guide is your key to unlocking opportunities and navigating the evolving world of work with confidence.

Your next career move begins now – click here to download our 2023-24 Economic and Employment Key Insights and Salary Guide, or speak with one of our dedicated consultants to get the process rolling!