| ign="center"> | | | | can never have any output for employer) + Costs of |
| Here we evaluate the Efficiency and Cost | | | | training + Opportunity lost+ cost of new |
| Effectiveness of using Job Portals as Recruitment | | | | Recruitment+ Client/business/systems stolen away |
| Tool as against hiring through Placement Consultants/ | | | | etc). |
| Executive Search Firms. | | | | 5) Cost of extra Attrition: When a Company uses |
| These days there is a growing trend of Companies | | | | Job Portals internally majority of its employees |
| opting for Job Portals for their Internal Hiring in order | | | | knows it and are marketed an idea of floating their |
| to reduce costs instead of approaching Headhunters/ | | | | resume on a Jobsite even if they are not looking for |
| Placement Services. Job Portals by way of their Huge | | | | a Change. The moment they put their resume on |
| Database Access and Job Posting Options Offer a | | | | jobsites, lot of calls/offers start coming back to |
| seemingly very attractive and cost effective way to | | | | them. This would lead to some additional stable |
| hiring. Is it the best and cheapest method? Lets | | | | people leaving the organization. Cost may |
| revaluate the Costs involved in such Hiring (for say a | | | | conservatively again be say Rs 5 â 10 Lacs |
| Company hiring 25- 50 People a Year). | | | | PA (for factors named in point 4). |
| 1) Cost of taking the Access: This is the First and | | | | 6) Cost of Missed Excellent Employees: When a |
| Obvious Cost Involved. An Yearly Access of | | | | Company Negotiates and deals with the Candidates |
| Database of 1 Job Portal may cost approx Rs 2 | | | | directly, there is a very strong possibility that a good |
| â 3 Lacs Per Annum with just 2 users. Bigger | | | | candidate turns back due to any kind of issues like |
| Companies with Big recruitment plans will surely have | | | | ego clash, non responsiveness of the organization for |
| to part with much more money. | | | | few days, direct negotiation etc. Besides how good it |
| 2) Cost of Recruiters: Again assuming 2 People are | | | | may look if I say I am an excellent Company and |
| Hired to work on these Portals for Internal | | | | employer, the same is good if conveyed by a |
| recruitments, cost of each recruiter at Junior level | | | | Consultant. These things can surely be avoided in |
| could be Rs 3.5- 6 Lacs PA (X2) (Assuming Salary of | | | | case an intermediary Placement Firm is there to |
| 15- 25K PM, actual cost of each employee is atleast | | | | mitigate and simmer down all arising issues. Why |
| 2- 3 times of their Salary if we include Phone Bills, | | | | Compromise on Quality when Consultants can provide |
| cost of infrastructure & Administrative Costs) | | | | you Ideal Candidates from Competitors or otherwise. |
| 3) Cost of Delay in Recruitment: When a Company | | | | Its cost may be take as Rs 5 Lacs PA (Of the |
| starts depending on the Portals they spend lot of | | | | business that this employee could have generated or |
| time trying to fill Positions Internally, whatever may | | | | costs he could have reduced or efficiency he may |
| be the delay. Delay can lead to lot of business loss | | | | have introduced and the cost of hiring an average |
| which may be in the form of lost sales, lost | | | | performer). |
| contracts, opportunities lost etc. This loss can surely | | | | 7) Cost of Lost Business or Lost Contract or |
| be avoided if a Search Firm is hired at the right time. | | | | Dysfunctioning of a department: Adding up points 3- |
| Headhunters/ Placement Agencies these days are | | | | 6, Delays in Recruitment, High Attrition, Average/ |
| extremely fast and utilize all means to fill in Positions | | | | Non committed Employees are surely going to make |
| in the shortest time span. They may do headhunting | | | | company loose some good existing or prospective |
| or referral or may search their own database. Even | | | | Clients or Contract or Business or may just lead to |
| with same Job Portal they can find much faster and | | | | Collapse of a department for its consequences to |
| better people owing to their vast experience in the | | | | follow. Even if we loose a client of say business value |
| same. Lets take ths cost as Rs 5 Lac PA. | | | | Rs 1 Crore and Profit Margin of 20% we loose Rs 20 |
| 4) Cost of High Attrition: People who put their | | | | Lacs. Conservatively we take this cost at Rs 10 Lacs |
| Resumes on Job Portals are much more probable to | | | | PA. |
| get Job Offer every now and then (even if they | | | | 8) Cost of Hiring through Consultants: Even if a |
| have recently joined your Organization.). Search Firms | | | | Company uses a Job Portal, it has to approach |
| on the other hand can provide lot of inactive Job | | | | Consultants for many of its Position especially at |
| seekers who have never floated their resumes on | | | | middle and senior management. Assuming they hire |
| Job Portals like Naukri of Monster. Even if 3 mid level | | | | only 6 people at say Rs 50K average salary, Cost is |
| people hired by you leave in say 3- 6 months of | | | | Rs 3 Lacs. This is an additional cost as most of the |
| being hired its cost may be in the tune of say Rs 7- | | | | above costs are already incurred before Consultant is |
| 15 Lacs. (Total Salary Paid to 3 employees in say | | | | released the Positions. |
| average 4 months 4X40,000X3 (as such short stay | | | | |