- Feb 5, 2018
With a number of recent reports from recruitment companies predicting higher salary costs of up to 7% for substantive employees, and contractors being in high demand due to GDPR. It may be difficult to see how any company can fight these market trends and actually reduce their costs, writes Steve Williams from Cybergig Network.
Staffing costs usually take the bulk of all service costs, so if you are looking to reduce costs you can usually only target 30% of the remaining service costs.
One of the low hanging fruits is agency spend. In the latest REC ( Recruitment and Employment Confederation) report, the average margin for both permanent recruitment and contractors is 18%. Steve pointed out that most agencies that specialise in IT actually charge upward of 25% margin. Furthermore, 25% margin is actually a mark up of 33%!
"Most recruiters will not be in a position to retain their databases after May this year due to GDPR - given that the guidance is to only retain CVs for three months"
Companies should look to deliver their own internal recruitment to make the biggest savings. For companies that are time poor and do not have the resources required, there are many ways to significantly delivery agency cost reduction.
Furthermore, whilst the salary/day rate is an important factor, so is the working culture and organisation itself in attracting the people you need.
Take a look at how Cybergig can reduce agency fees today! https://cybergig.co.uk/our-services/