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How to Save Money on Your New Hire

Executive Search Consultants charge large fees – shouldn’t I go another route?

It’s really a question of cost verses loss of revenue. You may not have thought much about this, but you are losing a substantial amount of revenue by leaving this position open. Here are just a few of the many costs that managers don’t think of until it’s already hurt their bottom line.

  • Revenue Costs – delayed revenue resulting from longer production times, underutilized assets, loss of sales, etc.
  • Personnel Costs – the added workload and higher stress levels can result in a number of problems like higher turnover, more frequent absenteeism, reduced creativity, and more.
  • Team Costs – disruption in team cohesiveness, increased chance of other team members leaving, etc.
  • Management Costs – less time to manage while working on the hiring process or filling in for the vacant role.
  • Customer Costs – inability to fill orders or a reduced level of quality can reduce customer base.
  • Competitive Advantage Costs – open positions send a message of weakness, jeopardize financing partnerships, and erode corporate culture.

Ken Forrester tells a fascinating, true story in the Fordyce Letter that illustrates just how beneficial to your bottom line hiring an executive search firm can be when we see the big picture. Take a moment to read his account: Placement Fees Are Cheap When You Look At Them This Way.

You can also view Ropella’s poster, video, or white paper on The Cost of Vacant Positions.