Why Recruiting In-House is More Beneficial for Your Small Business
The cost of recruiting new staff can be significantly lower when you recruit in-house, as opposed to hiring using recruitment agencies. For small businesses, that difference can be critical. On the plus side, using an agency means that you don’t have to spend excessive amounts of time monitoring job applications, vetting potential candidates, and organising interviews, but is money lost in the process really worth the extra time you gain? If you’re feeling confused and uncertain about your decision, here’s a list of reasons why recruiting in-house can be more beneficial for your small business.
Quick & Effective Communication with Applicants
Quite simply, you’re cutting out the middle man. Instead of waiting around for a recruitment agency to contact you about potential candidates, they’ll apply straight to your inbox. The same can be said for requesting interviews, scheduling dates, and hiring the successful candidate. If you hire in-house, you can speak to candidates when it’s convenient for you, whilst risking no miscommunication.
You are Experienced in Your Field
Recruitment agencies are there to sift through the pile of applications and decide which ones are suitable for the position up for grabs. This might be handy for a busy business person, however do agencies really know enough about your industry to be able to make that decision for you? If your small business is part of a particularly specialised field, recruiting in-house gives you the power to determine whether each candidate has the appropriate skills, qualifications, and experience. It’s a much more hands-on approach to hiring the right person for the job, and it means that you can make sure that your time isn’t wasted on candidates that aren’t knowledgeable about your industry.
The Cost of Recruitment
This is perhaps the most valuable factor; the cost of recruiting can be drastically higher when you use a recruitment agency. Small businesses could reduce their recruitment budgets and put the money elsewhere simply by taking a little more time out to manage the hiring process themselves. Not only do agencies charge administration fees, but they also earn a percentage of the successful candidate’s annual salary – meaning that you could pay out an extra 15% – 25%. That’s thousands of pounds paid out to a third party. Of course, the fees paid differ depending on the employee’s wage and type of contract, but hiring in-house will almost certainly make your bank account happier.
The UK’s Strong Economic Climate
Unemployment is at its lowest level in over a decade, so the recruitment market is stronger than ever. Despite a lot of fears over Brexit, hundreds of thousands of new jobs are expected to be created over the coming years as a result of greater investment into the UK. This will not only boost our nation’s economic growth, but it’ll also benefit small businesses greatly. Subsequently, small businesses are likely to feel more comfortable conducting the hiring process themselves as there is less risk of loss in a growing economy. You have pretty much the same access to the online job market as recruitment agencies – why not take the plunge and keep your recruitment in-house?