Good Hire Calculator

Posted on October 17, 2018 by PaulHickey | Recruitment

When considering professional services, if your first question is “how much do you charge” then you are making a huge mistake in confusing the difference between the cost and value of something.

In this article, we look at how you can save time and money when recruiting by asking the one question most recruiters despise and, by offering you FREE use of our Good Hire Calculator.

When you make an objective (not emotional) purchase, you typically look for value i.e. the worth of something compared to the price paid or asked for it, right?

By way of example:

  • You can travel from London to Glasgow on a bus. It takes 10 hours and costs £30
  • You can travel from London to Glasgow on a train. It takes 5 hours and costs £70
  • You can travel from London to Glasgow on a plane. It takes 1 hour and costs £120

There is only one goal, and that’s getting to Glasgow in an efficient and comfortable way. If you are confident that all of the above modes fulfil that requirement then the simple equation becomes time vs. cost = value. Logically, you would not be taking the cheapest option, after all, time is money….

Buying recruitment services should be evaluated in a similar way;

If your goal is simply to FIND someone, then I suggest you look for the CHEAPEST option however, if your goal is to FIND & RETAIN someone long-term, then I suggest you look for the best VALUE option.

This equation is a little more complex so you will first need to evaluate recruitment firms. Remember, if your goal is to FIND & RETAIN someone long-term then you should be asking the question most recruiters dread “what is your placed employee retention rate over, say, a 12-month period?”

Then and only then, you can work it back and determine if it represents value!

Let’s say you hired 10 people, on an average salary of £50,000 however, 3 of them left during their first year of employment (stayed 6 months on average) and you paid a recruiter 20% of each salary, your new employee retention rate would be 70% and the direct costs associated to the “bad hires” would be:

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To go one step further, the real depressing figures are the indirect costs which, are in addition to the direct costs:

Indirect-costs-pic.jpg#asset:1190

Here’s the good news. At GrassGreener Group™ we have a 96% new employee retention rate over 12-months and we can help you to achieve this too!

Given the above figures this would equate to a saving of £375,712.

Why not take 30 seconds of your time and try our FREE Good Hire Calculator, because If you understand the problem, you are half way to solving it!

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*Results based on formulas from Perfect Match (Making the right hire and the cost of getting it wrong) Study researched & published by the Recruitment & Employment Confederation October 2017.