FACT #1: Could your existing internal HR function be saving you money right NOW?
A member’s current Human Resources department might exploit internal resources to recruit and retain employees that generally approach the business directly for work, or are acquired from restricted advertising channels over a limited period of time. They may also utilise expensive employee overheads to administer general HR procedures, or be tied into expensive fixed long-term contracts with outsourced third party HR vendors, employment lawyers and the like.
Ask yourself…why limit your overall qualitative reach to the employee marketplace when you could be engaging tens of thousands of employees, via numerous channels, over a longer period of time – for much LESS money? Shouldn’t the collective strength of your industry association yield you much more savings on your external HR supplier costs? Could your HR management not save time and money on general HR administrative expenses by using experts in their field that appreciate your specific needs?
FACT #2: Are you really getting a FAIR DEAL from recruitment agencies?
A Human Resources team may also use recruitment agencies that claim to cut out the time to seek and engage a much more qualified type of employee. However, recruitment agencies are almost always REACTIONARY, so they hurriedly seek and place employees via job boards only as and when you request it. They are recruiters by trade first and foremost, so they rarely understand your particular needs your specific industry. Finally, agencies charge ridiculous fees for one single placement – getting a similar result that you could probably achieve yourself.
Ask yourself…by the sheer fact recruitment agencies mostly charge on percentage terms, does this not realistically suggest that they are in fact incentivised to provide you with the most expensive candidate, rather than the best fit for the job?
FACT #3: Are DIY Human Resources really the most COST-EFFECTIVE model?
If you are a small to medium size business then the answer is almost inevitably, “no.” Research suggests unfair dismissal claims are back on the rise; about 60% of businesses do not know their rights and a further 30% suggested their costs have increased because of employment legislation. Taking you away from your core competency of working in your business is a direct and in-direct cost to you both in terms of money, loss of income being absent from your daily commitments, administrative costs and massive potential legal risk if you get it wrong.
Ask yourself…how much does it really cost you in time, money and potential risk if you make the wrong employment decisions? Isn’t it better to leave it to the experts so you can focus on what you do best?
FACT #4: Do your employees really earn you a fair return on investment?
Employees cost money. The correct mentality would suggest this cost should come back to you in terms of earnings that should be generated by employees for your business. However, around half of businesses are not employing the right people or managing them properly and do not receive fair proportional return.
Ask yourself, are your competitors employing and managing the right people in the right way ahead of you and making more sales instead? During tough economic times, research suggests some 60-70% of employment applications pro-actively pushed to businesses is often from the lowest 10-20% of over-all capability and calibre for the role.