How to Quantify your Recruitment Agency Usage and Spend

by Beth McClements, Marketing Executive for Webrecruit Ireland.
Recruiting the right staff for your business is an important process. However, understandably you might not always have the expertise or the resources to sift through an endless stream of CVs and find your perfect candidate.

In some sectors, we are returning to a candidate-driven market once again, meaning that many companies that embrace innovative sourcing approaches will prosper in the race to attract talent. There is a huge range of specialist outlets for advertising your roles, particularly online, so it is extremely beneficial to ensure that you are weighing up all of your options, in order to find the most cost effective solution.
Developing an understanding of your recruitment stats and regularly reviewing the amount of money that you spend on outsourcing your recruitment is essential. Whilst saving time is important, your reliance on traditional agencies can also send costs spiralling. By taking stock of how many of your roles you’re outsourcing to a recruitment agency, you can start to identify ways to reduce your spend, whilst not increasing your time-to-hire or quality of hire.

So, how can you calculate just how much reliance you’re placing on recruitment agencies?
Make a list of the vacancies that your business has recruited for over the past year, and then, out of these roles, calculate the number that you have outsourced to an external agency. These stats will not only allow you to calculate just how much money you’ve spent outsourcing your recruitment, it’ll also allow you to identify ways to reduce this figure and establish if such roles really needed a traditional agency approach.

What is a ‘good’ percentage?
Only you and your business can determine this, but this should be tied to your overall recruitment objectives. Perhaps set a target for the following year to reduce your reliance by 10% to ascertain how good your business is at using other methods to attract candidates.

It is understandable that for more niche roles you will perhaps require help when recruiting, but it is extremely important that you research and understand what assistance you are getting for your money. Many traditional recruitment agencies charge between 15-20% of the job role’s salary, which for example, can amount to a staggering €10,000 in agency fees for a €50,000 PA salary.
As a result, it is imperative that you do your research. Look at different options to ensure you are getting the most value for money. For many, gaining outside help and knowledge goes without question, and that’s OK. It’s about trying to ascertain what companies and models that are out there that may be able to offer an alternative and more beneficial service.

About Webrecruit Ireland
Webrecruit Ireland, twice winners of “Recruitment Innovator of the Year” offer a mass online advertising option for your recruitment process on a flat fee. Their Talent Recruit model also provides access to a team of dedicated resources who can help you fill your vacancy and drive down your time and cost per hire
For more information on how to audit your agency usage, download Webrecruit Ireland’s latest guide, the
In-House Direct Sourcing Guide.