The Cost Of Recruitment

“We’ll Do The Recruitment Ourselves”

YOUR TREATING RECRUITMENT LIKE ADMIN

– THE, Most Expensive Hiring Decision!

One of the most common reasons businesses avoid using recruiters is simple:

“Do it ourselves and save the fee.”

And on the surface, that feels like the cost-effective option

However, industry research tells a slightly different story. According to the Society for Human Resource Management (SHRM), the widely accepted formula for Cost per Hire is:

Cost per Hire = (Internal Costs + External Costs) ÷ Number of Hires

Importantly, internal costs include hiring manager time – something many businesses either exclude or treat as “free”. SHRM explicitly recognises hiring team time as a measurable cost.

Benchmark data further supports this, with SHRM recognising internal hiring costs – particularly manager time – as a key component of cost per hire, while the CIPD reinforces the need to account for internal labour, not just external spend. (Cost per Hire definition and calculation explained )

But very few businesses stop to fully consider what that decision actually costs them – beyond the invoice they’re trying to avoid.

Recruitment is often treated as an administrative task – when in reality – it’s a commercial decision with direct impact on business performance.

Handled well, it drives efficiency and growth. Handled poorly, it creates delays, risk, and long-term cost.

When it sits with already stretched managers, those costs don’t disappear – they simply show up elsewhere.

Let’s Break It Down: What It Actually Costs You

1. Your Manager’s Time – (The Hidden Salary Cost)

If a hiring manager is running recruitment themselves, ask:

• What is their hourly rate?

• How many hours are they spending?

So,

• Time to write and post an advert

• Time to review resumes

• Time to call and screen candidates

• Time to coordinate interviews

• Time to complete interviews

• Time to give feedback and have internal discussions….and the list goes on….

👉 You’ve already spent 15–20+ hours of a senior employee’s salary – and that’s before a hire is even made.

Now multiply that across multiple roles per year.

2. The Efficiency Gap (Expert vs Non-Expert)

A recruiter:

• Knows where to look

• Knows how to screen quickly

• Knows what to look beyond a CV

A non-specialist?

They’re figuring it out as they go: 👉 Your manager takes 3x longer to shortlist candidates

Then: 👉 Your true “saving” is already shrinking fast

3. The Cost of Delay (Vacancy Impact)

While your recruitment is dragging out:

• Work isn’t getting done

• Other staff are stretched

• Opportunities are missed, what is the cost to your business of missed opportunities?

If: 👉 A role stays open for an extra 3–4 weeks

Then: 👉 You’re paying in lost productivity, revenue, and team performance

This is often the biggest cost – and the least measured.

4. Bad Hire Risk (Replacement Cost Of Getting It Wrong)

Here’s where it becomes even more expensive.

A poor hire can cost:

• 30–150% of salary (conservatively)

Includes:

• onboarding time
• lost productivity
• team disruption
• rehiring costs

👉 Managers often overestimate their ability to assess fit

So What’s the Real Cost to You?

Instead of asking: 👉 “How much does a recruiter cost?”

Ask: 👉 “What is it costing us to do this without one?”

This isn’t about saying businesses shouldn’t recruit themselves, just about understanding the trade-offs.

Because recruitment done well:

• Saves time

• Reduces risk

• Improves hiring outcomes

And recruitment done poorly – stretched across people who already have full-time roles – almost always costs more than you think.

We can offer you expert recruitment to fit most business budgets.

If you’d like to explore the most cost effective option for you, please reach out – it may be more cost effective than you think!

Contact us today for a quote