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The True Cost of a Candidate

Don’t Price Yourself Out of the Market

​It might be a cliché, but 2021 and 2022 are the first years of a new employment market. While the market will definitely change again as we move further away from a pandemic footing, things are never going to look the way they did before the Great Resignation. One thing that’s definitely true is that candidates are more valuable than ever – and the true cost of a candidate can be much higher if you try to pay less.

Don’t Price Yourself Out of the Market

When talking to a new client, I’ll often be asked what the average going rate for a candidate with a particular set of skills might be. Sometimes – not too often – I’m told that these candidates must be “overpriced”.

I’m never going to offer a client a candidate I believe is outside a reasonable budget for the role, and at the time we have this conversation, usually we’re not at a point where candidates are being sent over. What I do try to make clear at this point, though, is that it’s always much cheaper to hire the right candidate first time.

Nobody wants to have to replace a new hire two or three months in, but that’s not the only thing that can go wrong when you price yourself below market rates. Most of the time it means you don’t get a candidate who can do what you need; it means you get someone with less experience and less skill, who then has to grow into their role fast.

Learning under stress like that is full of issues of its own.

Of course, sometimes, you get ‘lucky’ and there’s a candidate on the market who can do everything you need and whose circumstances mean they have to accept a below-average offer. But will you still think it’s lucky when they leave six months later, having found a role paying them what they expect?

I’m not just speaking for myself but as Head of Practice when I say that I’d rather not collect two fees from one client because the same role needs filling twice; not when I could put the right candidate in place from the start, and get a happy candidate and a happy client.

Between hiring fees, onboarding, training, and offboarding expenses, getting the wrong person in the role can end up costing enough that you could almost hire a a second specialist for the same money.

Let’s save that money together, shall we?

Drop me a line if I or my team can help you.