With the economy in full rebuilding mode and projects being added at a break-neck pace, the use of outside agencies to hire and retain employees is more important than ever. The challenges faced by the construction industry begin and end with the quality of the people being hired. Here are just a few of the key reasons why bringing in subject matter experts is the best choice for our industry.
From placing an ad to onboarding a new employee, costs are one of the biggest issues cited by companies that contribute to their reluctance in using an agency. Unfortunately, the true cost of hiring is elusive and needs to be looked at. There is more to cost then the dollars spent on an ad to a job board. When you use this method, the true costs associated with hiring are as follows:
- Time, how long will the position be unfilled? Every day means lack of production dollars from that position.
- Advertising cost, the actual price paid to the job board or newspaper.
- Administrative cost, the time spent sorting through the resumes sent to the job board and prescreening those that meet the criteria. This cost increases if done by someone who has a different function within the company, i.e. managers, administrative staff, HR, or company executives. Their actual jobs are either being put off while hiring or hiring is being put off while their jobs are being done.
- Interviewing only active candidates. To put it in perspective, is the person looking for a job actually the best person for the job? You have no access to passive candidates with this method, so while you may find the best active candidate, it may not be the best candidate you could have seen. There by taking more time to fill the open position.
- Background checks, drug screens, and reference checks all add to the bottom line.
Agencies that are dedicated to partnering with your company on the hiring process have costs associated with them as well. There is a fee involved, usually a percentage of the guaranteed first year’s salary for the position being filled. Those costs are usually a fraction of the above mentioned costs. Here is why:
- Time- A dedicated team of recruiters will take far less time to source and prescreen candidates then the usual method of ad placing.
- Advertising cost- None to the client. Any ads placed are paid for by the agency you have contracted.
- Administrative cost- minimal to the company in that all resumes are sourced and screened by the agency. You will have to review the candidates submitted so there is some time required from you.
- Passive candidates- this is the true value from an agency. You now have access to candidates who may have never seen your ad. They are happy and productive where they are. The agency can tap into this resource and bring these candidates to you. Which, in turn, reduces the time to fill.
- Drug screens are the only cost here as the agency will vet the background of a candidate as well as check references at your request.
Employee retention is the next biggest advantage in using an agency. Because the agency builds relationships with you and your company, as well as learns what drives the candidates they present to you, making retaining those hires much easier. When you hire through job boards you rarely get a true feel for what motivates a specific candidate. By building the relationship with the agency, they learn your company’s culture, mission and direction. Then they match those with candidates that have the same motivators.
The best part about using an outside agency, it’s free! Yes, it’s free. Reputable agencies work on a contingent basis. You pay nothing until you hire one of the candidates they present. Because of this, you can do what all the top company’s in the country do. They always hire. An agency that you have partnered with will always bring top talent to your attention. Always. Even when you aren’t looking to add to staff, you can be assured that once an agency understands your company and the types of talent you value, they will present the best candidates they come across to you. Again, at no cost to you, unless you hire them.
Bottom line, if you want to lower costs of hiring, retain the talent you work so hard to attract, and be made aware of top candidates in your industry, find an agency that you can partner with and use their expertise to grow and add value to your organization.