The Shocking Truth about Using an Internal Recruiter

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Most companies face this important question. Does an internal or external recruiter do a better job? And, most important, which option is more cost effective. For most companies, the answer is surprising.

Although it might seem cost effective to hire a team of internal recruiters, you’re likely paying more than you think. Read on to find out why.

Quality of Hire 

There’s no faster way to throw away profits than a bad hire. The affects are wide spread, costing your organization thousands of dollars each year. In fact, a bad hire costs up to five times the employee’s annual salary, according to a study conducted by the Society for Human Resources Management.

During the recruiting process, most internal recruiters rely on technology to do the initial applicant screening. Also, internal recruiters aren’t always measured on the quality of the hire, long-term . Instead, many are measured on the number of positions filled monthly or quarterly. This can lead to even more bad hires, without any direct consequences.

On the flip side, external recruiters are measured strictly on hiring success. Companies would stop using the external recruiter altogether, if they made consistent hiring mistakes. As a result, recruiting firms already have a model in place, to ensure hiring success.

Time to Fill

As we have explored previously, your company loses money each day a position is left vacant. This creates a deeper problem in your organization. Vacant positions can damage client and supplier relationships and result in overworked employees; resulting in even higher turnover. This is another expensive problem.

Recruiting agencies, however, can usually fill positions faster than internal recruiters. Here’s why. They have a large applicant pool already in place, ready to start work immediately. Candidates have already been pre-screened for the skills most relevant to your position.

Recruiting Brand

The best candidates have lots of employment choices. An external recruiting firm can assist with creating a strong recruiting brand. The result? You’ll appeal more to top talent.

Plus, when an external company sells your brand, it comes across more genuine. This is tougher for an in-house recruiting team, which appears to have a higher vested interest.

The Right Solution for your Organization. Honestly, there’s value in both external and internal recruiting options. For large volume organizations, a hybrid approach often works best. However, if you aren’t sure which approach is right for your situation, talk with CERS! We offer a FREE opportunity to discuss your unique challenges with our experts by calling 561-910-8000.

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