In-House V's Agency Recruitment

Updated: May 16, 2021

Whether you recruit in-house or use recruitment agencies the fees and costs associated with recruiting can rack up which is why it is soo important to get the hiring process right and create the right first impression. When putting together a recruitment budget there are a lot of options to factor in to the cost:

Job Board

Advertising on job boards such as Jobsite, CV Library or indeed is a sure way of attracting applicants who are currently on the market.

Since Covid the market has been saturated with candidates looking for their next role, which has meant that when you post 1 role it is very common to receive around 200 – 600 applicants. Unfortunately, only a small percentage of these candidates fall within the specification of the role which can make sifting through the CV’s rather time consuming. Certain studies have shown that candidates who regularly apply to roles advertised on job boards represent around 20% of the qualified candidates in the marketplace. So, posting your role on job boards will definitely get you attention, but whether you’ll attract the attention of the right person for your role is another story.

Candidate Assessment Tools

Once you have your applications from your job advert you will need help shortlisting the most suitable candidates. There are a variety of Systematic and Psychometric tests you can use to help you select what applicants will be progressed to telephone call.

Recruitment Agency

Recruitment Agencies will meet with clients to discuss the role, advertise, resource, shortlist, manage the interview, offer, counter offer through to placement.

There is a view that using a recruitment agency costs a lot but a lot of work goes on behind the scenes which is how agencies justify their fees. Fee’s range between 15% - 25% of a new hires starting salary.

Recruitment agencies use a variety of innovative candidate attraction techniques and are often able to save clients time and money by not just attracting the best talent but making sure clients retain top talent too.

At Cactus Recruit

Our Standard Fees are under market value, and we are that confident in matching candidates to clients that we offer a FREE replacement if the candidate leaves within the first two months (This is unheard of within the industry!).

Internal Recruitment

For larger organisations it is often more cost effective to have an internal recruiter. However, often they don’t have access to all the job boards, LinkedIn Recruiter or have a portfolio of candidates. On average agencies source successful candidates 2-4 weeks quicker than in-house recruitment teams. Statistics have shown that over 70% of in-house solutions fail to source 90% of their vacancies themselves so they end up relying on agency support.

Invisible Costs to Business

Time is a huge factor as Time is money. The time it takes hiring managers to source candidates, screen CV’s, interview candidates; not to mention the time and cost for training new hires. There is typically a substantial cost to the business just by waiting for somebody to be hired. Whilst these might not seem to directly impact a company’s bank balance, the effect on production level is almost always a costly one.

Not to mention, when there is a pressure to hire and the wrong person is offered the job. Even after a new employee is welcomed to the team, they are typically functioning at only 25% after the first month and Harvard Business discovered that it takes 5 months to get to the point where a new employee can achieve full productivity - imagine having to go through this twice because you hired the wrong person!

Making the Wrong Hire

Everyone knows that making the wrong hire can be costly, but did you know that almost 50% of new hires leave within the first 12 months! This is why it is crucial to be as transparent about the role and company as it is equally important the role matches what the candidate is looking for.

The Recruitment and Employment Confederation estimated that the costs of a bad hire can cost more than TRIPLE the cost of the initial positions salary. Their study included figures as high as £132,015!

While this does seem extreme, another report written by the HR Review estimated that on average the cost of making a bad hire is around £30,000. This is taking everything into account including, time to hire, cost to business of training, double recruitment fees, temporary staff etc. Some lucky (or not so lucky) employers have listed the costs of replacing a bad hire as low as £7000, but this seems to be the best case scenario!


At Cactus Recruit, we know that every company needs something different from a recruitment service. We understand that competition to attract and secure the best talent is fierce and can be time-consuming for organisations. More than ever it is critical to stand out from the crowd, get the hiring process right and create the right first impression.

If you are looking to grow and you would like a call to discuss what option best suits your company, then please give Cactus Recruit a call on 01614704597.

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