How to Save Money on Your New Hire
By Patrick Ropella Posted 02/13/2015
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.