DIY Recruiting: Beware the Hidden Costs

You may have a practice large enough to have an internal HR function. If so, good for you. If you’re in the vast majority of practice leaders who aren’t that lucky, however, the idea of working with a recruiter to find the best candidates can look like an expense you just don’t need.

If you think that way, perhaps there are factors you haven’t fully considered.

One of them is the question of what your time is worth. If you could be billing it at $250, $300 – or more – per hour, do you really want to spend that time shuffling through piles of resumes? And “piles of resumes” is what employers tell us they are getting in response to advertising an open position. Sure, you might find what you want somewhere in that pile. Is it worth what it could cost you to find out?

Some employers are deceived by unemployment statistics. The overall unemployment rate is hovering somewhere just above 9%. With an unemployment rate that high, you’d think there ought to be plenty of candidates. But, BV practice leaders aren’t in the market for just anyone. They need employees with at least an undergraduate degree and, typically, a few years of experience. The June 2011 unemployment rate for that category is a mere 4.4%!

Finally, the opportunity cost of not hiring quickly can be greater than you think. A recruiter fee is the rough equivalent of between three and four weeks of chargeability. Delays in getting the talent you need because you thought you could do it yourself can quickly eat up any savings you might have enjoyed.

The next time you’re inclined to take a DIY approach to recruiting candidates, think about the hidden costs.