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Does a low cost of hire matter above all else?

Written by Guest Author | July 27, 2015 | 0 Comments
Time-cost-to-hire---BSIt’s a question that is frequently asked of the average recruitment consultant in Leeds, as if taking on a new recruit for your company is much the same as buying a new car or working out the cheapest possible taxi fare.
Sure, maybe such comparisons are perfectly legit – but not necessarily in the ways that you might think. Let’s imagine, for example, that you are purchasing a new computer.

The ‘computer’ analogy…

The first computer that you look at seems incredible – it has an amazing specification, is by a reputable manufacturer and does everything that you require such a machine to do. However, it’s also easily the priciest option.
You therefore consider a second computer, which is a lot more affordable while doing most of the things that the first computer is capable of.
But wait – your eye has just been caught by a third computer, which is available at an absolute steal of a price, but delivers much less impressive performance and is by a lesser-known manufacturer.

It’s not as obvious as you might think

Of course, you can soon begin to see from these examples how prioritising low cost above all else may prove a false economy.
The third computer mentioned in the above example might not have the performance or functionality that you need, meaning that you have to fork out more over time for upgrades, or even replace the machine altogether – a considerably expensive and time-consuming process.
But even the second computer could present a few issues, and as for the ‘dream’ first example – is the extra expense involved justifiable?
Maybe it is, maybe it isn’t. It all depends on your particular circumstances and needs – as well as what those costs actually are.

Figuring out ‘value’ from your hires

It all sounds very complicated when you try to apply the same principles to a new hire, but it doesn’t need to be.
The aforementioned first computer is the ‘star’ candidate who seems to tick almost every box as far as long-term potential is concerned, but who may come with extra costs – such as a higher salary or to be trained in a certain area.
This compares to the second computer, the equivalent of the more well-rounded candidate who may not deliver quite as impressive performance in the long run as the ‘dream’ candidate.
Then, there’s the third computer, which can be likened to a true ‘quick fix’ candidate, with all of the advantages and disadvantages that quick fixes usually entail.

So, what’s the answer?

The short answer that any recruitment consultant in Leeds will give you is to look to the best possible candidate – in this case, the ‘dream’ candidate – that you can afford.
As a general rule, it is this candidate who will reward your firm most over time, more than paying back any extra expense associated with the hire.
Talk to Webrecruit today about how you can maximise your own quality of hires.

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