As a result, many HR divisions avoid taking on any recruiting responsibilities at all. In what ways may one identify a reliable business partner? If there are costs involved, what should you anticipate? If you’re wondering what to anticipate in terms of recruiting expenses, this article has the answers you’re looking for.
The Pros of Working with a Staffing Agency to Fill Open Positions
Despite the high cost, there are several benefits to using a recruitment Agency in Kuwait:
- Helpful in terms of saving time
The average HR department is quite lean. That’s why time is more valuable than anything else. Hiring an outside business to handle recruitment allows you more time each day to concentrate on other, more important duties.
- Expertise
There are instances when businesses need to fill niche positions. In-house recruiters may lack the specialised expertise necessary for this task.
- Connections
Recruitment firms already have access to a large pool of potential candidates. They may quickly fill open positions with (often covert) job seekers.
How do Staffing Firms Determine Their Rates?
When working with an outside agency, there are a few different methods to set up the agreement. Contracts are often based on the nature of the post and the agency’s standard contract. Some of the most frequent agency agreement structures are listed below.
- Percentage
Compensation is equal to a predetermined share of the employee’s base wage for the first year. On average, this figure might fluctuate between 15% and 25%.
- Retainer
Hiring a recruiting firm might lengthen the process significantly but may end up saving you money. Paying an Recruitment Agency in Kuwait to keep its services exclusive to the company is how the post is filled. The cost will be paid in stages, with the first portion due at the outset. Still, the overall percentage paid is usually between 15 and 25% of the employee’s first year’s income.
Contract. When an agency handles a contract placement, it keeps the worker on its own payroll and bills the client for their salaries plus a fee to cover agency costs. The average cost of this service is equivalent to around 1.5 months of salary. If an employee earns $20 per hour, the agency may charge the customer $30. There is a strong possibility, and sometimes an actuality, that these contract assignments will lead to permanent positions.
- Contingency
In a contingency hire, the employer’s payment is conditional on successfully placing the candidate. Only when an employee is successfully placed with a customer does the recruitment Agency in Kuwait get payment. This is usually between 15 and 25% of the employee’s base pay the first year.
How Much Does It Typically Cost to Recruit an Employee?
The average cost to hire a new employee is between 15 and 25 per cent of their annual wage. If an agency charges 20% of the first year’s salary at the time of placement, and the applicant is put at a firm where the annual salary is $75,000, the employer would pay the agency $15,000.
Do the Fees Really Justify the Use of a Recruiting Service?
In human resources, “it depends” is the golden response. Does your business have a full-time recruiter that spends all day looking for potential employees? Have you had a deadline for filling this job, or can you afford to take your time? Can you provide me with an overview of the company’s revenue situation? Is there a severe shortage of funds? These considerations are comprehensive.
The cost of paying for recruits is usually well worth it. Think about all the time and effort you’ll have to put into searching for a new hire, conducting interviews, and finding the right person for the position. When deciding whether or not to use a recruiting agency, it is important to take into account all of the aforementioned factors, as well as any others that may be relevant.
Even if you have to pay a recruiting firm $10,000 to $50,000, the time you save will more than make up the difference in only a few months.