The hidden costs of recruitment
How much?
The notion of an interim HR professional being good value for money may surprise many. After all, at first glance interim managers are not cheap. Charge-out rates vary but are typically £400 to £950 for a middle or senior manager up to possibly £1,500 for a very senior HR executive.
For someone trying to temporarily fill a £70,000 a year role, this can look expensive. That’s because it is easy to miss the true way to value an interim manager's contribution.
“Real Cost” of recruitment
Companies first need to realise that a permanent employee on £70,000 per annum is actually costing the business a lot more. Once you have added in recruitment costs, bonuses, holiday pay, employers' national insurance contributions, pension, health and company car benefits the real employment costs are nearer £110,000 per year.
Furthermore, you need to factor in the advantages of quickly plugging that recruitment gap. In a typical recruitment scenario a company may take 1-2 months to find the right person. The executive being hired will then have to typically serve a three-month notice period. So it will be four months before the candidate is in place, and six months before you know whether they are really the right choice or not. If the decision has been a bad one, you start all over again and double the additional cost.
To discuss the hidden cost of recruitment further, please contact our interim HR team, or visit the value of using an interim to find out more. Alternatively, if you want to find out more about our sector expertise click on one of the links below:
