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HomeBlog General The benefits of an internal recruiter: Does an internal recruiter pay?

The benefits of an internal recruiter: Does an internal recruiter pay?

2nd October 2013

The short answer is if they can hire c. £1,000,000 in employee salaries (e.g. 20 people at £50K or 50 people at £20K) you are probably in the plus.

How do I get to this:

1/ Deloitte recruitment survey, on average 37% of recruitment income goes to the recruiter basic and commission/bonuses.

2/ Recruitment companies go bust all the time, it’s highly unlikely that a non recruitment business could be as efficient as above.

3/ Please look at direct hires per year prior to having a recruiter, these do not then equate to a financial saving.

4/ Internal recruiters demand an exclusivity period across all vacancies; ask your buyers to get agency quotes on this, you’ll probably get plenty of 10% offers from proven sources.

So you’ve excluded the direct hires that you would have with or without an internal recruiter (HR should have these numbers). Your buyers have got you 10% deals from reputable suppliers for the exclusivity period your potential internal would like.

10% of 1,000,000 is 100,000

37% of 100,000 is £37,000 – probably similar to what you pay in basic and bonuses to a quality person.

 

P.S. If you look at the healthcare recruitment market, it’s changing, there is less effectiveness being a generalist, thus generalists are disappearing and niche (where an organisation continuously interacts with a small candidate pool) is rising. Where does this leave an internal recruiter trying to fill whichever role comes up?

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