Is it a false economy to choose lower recruitment fees?

In recruiting, hiring managers often prioritize cost and look for a cheaper service with lower fees. While this may seem like a logical choice, it's important to consider the potential trade-offs. By focusing solely on price, you may compromise on the quality and speed of your hiring process. Here are four real-life reasons why this could be the case.

2 mins read
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7 months ago

​Customers and clients evaluate products and services based on price, quality, and speed. Wanting something good, fast, and cheap is impossible - you can't have all three together. However, it may be possible to prioritize two out of the three criteria:

  • Something that is good and cheap will not be fast.

  • Something that is good and fast will not be cheap.

  • Something that is cheap and fast will not be good.

Lower quality and fewer candidates

When you negotiate lower fees with a recruiter, it can impact their budget for attracting candidates. They can't promote your job on popular job websites or pay for special LinkedIn accounts to find good candidates. This limitation in resources may result in a reduced pool of high-calibre talent for you to choose from.

Lower quality recruiters

Reduced fees mean reduced income for recruitment companies, which may result in smaller salary budgets to attract top recruiters. Some recruiters lack the necessary skills to connect with qualified candidates. Additionally, there may be a shortage of recruiters available to find individuals for job positions.

Instead of many recruiters, you may only have one because of budget limits, which could decrease the number of candidates.

Longer hiring process

Recruiters with limited resources and weaker tools may struggle to find qualified candidates efficiently. Delays can occur in finding the right person for your team. This is because it takes longer to choose and interview suitable candidates. The hiring process is prolonged as a result.

Lower priority for your assignment

When a client negotiates lower fees, the recruiter may prioritize other higher-paying assignments. From a commercial standpoint, it makes sense for them to focus on work that brings in more revenue. As a result, deprioritizing your assignment may lead to further delays in the recruitment process.

Choosing extremely cheap fees may seem good at first, but it's important to think about the long-term effects. Are the potential delays and lower-quality candidates worth the cost savings? Taking a step back and evaluating the bigger picture before making hasty decisions is essential.

Remember, finding the right person for your team is a crucial investment in your company's success. Think about the importance of a good hiring process, even if it costs a little more. In the long run, the right candidate can make a significant difference to your team's performance and overall success.

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