Recruiting the wrong employee can cost a company 2.5 times their salary
Small businesses don’t have to fear high recruiting costs if they use ‘For Direct Hire’ from business owner Marc Mapes. Jasper talks to Marc about his new concept as part of our entrepreneurs series.
You are preparing to launch For Direct Hire in the UK. Tell us how it works
Both my business partner, OraRuth Rother, and I spent a year each as jobseekers utilising every recruitment method currently available. Like every other jobseeker out there we tried traditional and online recruiters, job boards, and broadcast models like the new breed of social media tools with no success.
We came to the realisation that there has to be a better way to recruit and be recruited, so we decided to stop complaining and do something about it. The result is an easy-to-use online alternative recruitment model called For Direct Hire.
Tapping into the matching concept of extremely successful online dating services, we have developed a system called HireMatch, which we believe will revolutionise the way employers and candidates not only find, but also evaluate each other. We harness the power of the latest online behavioural assessment tools, which have been developed in association with a global leader in psychometric testing, and combine those results with the traditional recruitment elements of skills, experience, education etc and our own exclusive methodology.
The most basic explanation is our system measures a candidate’s preferred work behaviour and the role’s true needs and then matches the two automatically, objectively and in real time.
Many SMEs don’t use recruitment services because they simply think it’s too expensive and not worth a try. True?
This is true of traditional percentage based placement fees recruitment services. These fees have adjusted slightly as the market has dropped in the last couple of years, but they’re still 10-30% of a hired candidate’s total first year remuneration.
We felt these charges are unsustainable and often made it so either the company couldn’t afford to hire required staff or could only hire the candidates that fit into their recruitment budget inclusive of an added cost of a large placement fee.
We offer flat fees based on salary bands which equate to approximately 80% less than traditional 20% percentage-based placement fees. We help companies move from the candidate they can afford to the candidate they desire by making external recruitment affordable.
There are so many recruitment agencies around. What makes you stand out from the crowd?
Candidates are more than a CV and should be treated as such. First of all we are not a job board and there are no jobs listed on our site. We believe the “post and pray game” is of no benefit to anyone.
Companies enter roles and our HireMatch system searches our entire talent pool for a shortlist of suitable candidates. When it comes down to it, however, we’re just one of many solutions available. Good traditional recruiters will always do well if they add value to the process by performing the services they promote to sell themselves.
Even though we believe we have developed one of the best solutions for job searching, we encourage job seekers to use every available resource to find a job. What make us stand out when it comes to candidates is our “shortcut to the shortlist”. Whenever HireMatch determines there is a fit the candidate is presented to the company every time. With no middleman subjectivity and without human bias.
No more spending time and money running all over town going to elimination round interviews. Candidates are contacted directly by the company and only when there is true interest. Companies get the peace of mind of knowing they will receive a shortlist of pre-assessed candidates who fit the immediate needs of the role and the culture of the company.
Plus, they enjoy the added benefit of not having to spend their valuable resources on endless sifting of CVs that may or may not suit their needs. The last important difference is that our system supports HR members, line managers and other non-HR professionals to engage in robust and comprehensive searches through our user-friendly and intelligent techniques.
What advice can you give small businesses in the UK when hiring new staff?
Studies have shown that hiring the wrong employee can cost a company 2.5 times the salary of that person. So my advice is hire smart and use whatever tools you feel give you the best chance of finding the right employee. Studies have shown that CV-only based interviews result in 25% hiring success, but it can be increased to 75 % success with the addition of assessment.
For Direct Hire has the power of assessment built in, so not only have we made recruitment affordable, but companies get the added value of getting a short-list of pre-screened candidates automatically.
Visit Marc his blog as well.