“Time is money.” – Ben Franklin, inventor, businessman, founding father of the United States
“Price is what you pay. Value is what you get.” – Warren Buffet, American investor, CEO, philanthropist
Why should we use a staffing agency? It’s a fair question and one that I am asked often. These quotes from two distinguished Americans encompass the basic answer: because you will save time/money and get better value.
In a way, it is as simple as that. Most everyone, especially businesspeople, can see the innate wisdom in these statements and have likely experienced it personally. As it relates to our question, consider this:
- You save time (part I) – When you hire an agency, they invest the time in finding and screening potential candidates. The hiring process is time-consuming. This is especially true if you don’t do it full-time. There are still interviews and other parts of the process that you can’t outsource, but there are absolutely some you should, and they are the more time-intensive ones. Staffing firms also have economies of scale and experience. The efficiencies that come with expertise are real and translate into real dollars.
How much? Well, it can vary depending on industry and position, but for roles that require highly skilled people, estimates are $50,000+ which encompasses a number of investment costs. Consider this alone though: do you know how many hours each new hire takes? Who internally spends time that could be outsourced, and what else could they be focused on? How much are those hours costing you?
- You save time (part II) – In almost all instances, time-to-fill (the amount of time a position is open) and time-to-hire (the amount of time from when a position is posted to when a candidate accepts an offer) is reduced when you use a staffing firm. When a job remains open, it means others are spending their time covering the responsibilities of the position. The sooner that great new hire starts, the sooner everyone is focused on their own responsibilities.
How much? Again, it depends, but I’m sure you’ve probably already thought about this at some point. What won’t get done or will take longer to accomplish until someone is hired? Are you paying overtime for people to cover things or reprioritizing other work? Worse, are you burning your staff out or falling behind? Obviously, there are real and intangible costs associated with all of this.
- You get better candidates – In addition to navigating the universe of active job seekers more efficiently, external recruiters have developed long-term relationships with people, which means they can tap into the passive talent pool much more effectively than you can. That translates into better quality candidates for you to choose from, and thus better hires. More talented employees that will be more successful. This is the hardest one of all to assign an associated cost, but I think it’s obvious that not giving yourself the best opportunity to hire the best people is going to have an effect.
- All of the above x10 – For specific skill sets, niche talent, and areas where demand outpaces supply, everything above will have a bigger effect. Further, widespread unemployment does not necessarily equal easier hiring. In some cases, it will make hiring even more time-consuming to evaluate a flood of resumes and even more important that you know how and where to find the right candidates. In short, it will take more time to find better candidates and more time translates into more money.
Franklin tells us that time saved is money saved, while Buffet reminds us that cost is not the only consideration; quality and value count too. Working with a great staffing firm and its knowledgeable professionals can help you achieve both! Whether you outsource in full or need help with part of your recruitment strategy, you can benefit from partnering with a staffing firm that knows your needs, understands your business, and brings you great value while saving you time and money.
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