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Here we evaluate the Efficiency and Cost Effectiveness of using Job Portals as Recruitment Tool as against hiring through Placement Consultants/ Executive Search Firms.
These days there is a growing trend of Companies opting for Job Portals for their Internal Hiring in order to reduce costs instead of approaching Headhunters/ Placement Services. Job Portals by way of their Huge Database Access and Job Posting Options Offer a seemingly very attractive and cost effective way to hiring. Is it the best  cheap beats by dre studio and cheapest method? Lets revaluate the Costs involved in such Hiring (for say a Company hiring 25- 50 People a Year).
1) Cost of taking the Access: This is the First and Obvious Cost Involved. An Yearly Access of Database of 1 Job Portal may cost approx Rs 2 - 3 Lacs Per Annum with just 2 users. Bigger Companies with Big recruitment plans will surely have to part with much more money.
2) Cost of Recruiters: Again assuming 2 People are Hired to work on these Portals for Internal recruitments, cost of each recruiter at Junior level  beats by dre studio cheap could be Rs 3.5- 6 Lacs PA (X2) (Assuming Salary of 15- 25K PM, actual cost of each employee is atleast 2- 3 times of their Salary if we include Phone Bills, cost of infrastructure & Administrative Costs)
3) Cost of Delay in Recruitment: When a Company starts depending on the Portals they spend lot of time trying to fill Positions Internally, whatever may be the delay. Delay can lead to lot of business loss which may be in the form of lost sales, lost contracts, opportunities lost etc. This loss can surely be avoided if a Search Firm is hired at the right time. Headhunters/ Placement Agencies these days are extremely fast and utilize all  beats by dre studio red means  beats studio to fill in Positions in the shortest time span. They may do headhunting or referral or may search their own database. Even with same Job Portal they can find much faster and better people owing to their vast experience in the same. Lets take ths cost as Rs 5 Lac PA.
4) Cost of High Attrition: People who put their Resumes on Job Portals are much more probable to get Job Offer every now and then (even if they have recently joined your Organization.). Search Firms on the other hand can provide lot of inactive Job seekers who have never floated their resumes on Job Portals like Naukri of Monster. Even if 3 mid level people hired by you leave in say 3- 6 months of being hired its cost may be in the tune of say Rs 7- 15 Lacs. (Total Salary Paid to 3 employees in say average 4 months 4X40,000X3 (as such short stay can never have any output for employer) + Costs of training + Opportunity lost+ cost of new Recruitment+ Client/business/systems stolen away etc).
5) Cost of extra Attrition: When  monster beats studio a Company uses Job Portals internally majority of its employees knows it and are marketed an idea of floating their resume on a Jobsite even if they are not looking for a Change. The moment they put their resume on jobsites, lot of calls/offers start coming back to them. This would lead to some additional stable people leaving the organization. Cost may conservatively again be say Rs 5 - 10 Lacs PA (for factors named in point 4).
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6) Cost of Missed Excellent Employees: When a Company Negotiates and deals with the Candidates directly, there is a very strong possibility that a good candidate turns back due to any kind of issues like ego clash, non responsiveness of the organization for few days, direct negotiation etc. Besides how good it may look if I say I am an excellent Company and employer, the same is good if conveyed by a Consultant. These things can surely be avoided in case an intermediary Placement Firm is there to mitigate and simmer down all arising issues. Why Compromise on Quality when Consultants can provide you Ideal Candidates from Competitors or otherwise. Its cost may be take as Rs 5 Lacs PA (Of the business that this employee could have generated or costs he could have reduced or efficiency he may have introduced and the cost of hiring an average performer).
7) Cost of Lost Business or Lost Contract or Dysfunctioning of a department: Adding up points 3- 6, Delays in Recruitment, High Attrition, Average/ Non committed Employees are surely going to make company loose some good existing or prospective Clients or Contract or Business or may just lead to Collapse of a department for its consequences to follow. Even if we loose a client of say business value Rs 1 Crore and Profit Margin of 20% we loose Rs 20 Lacs. Conservatively we take this cost at Rs 10 Lacs PA.
8) Cost of Hiring through Consultants: Even if a Company uses a Job Portal, it has to approach Consultants for many of its Position especially at middle and senior management. Assuming they hire only 6 people at say Rs 50K average salary, Cost is Rs 3 Lacs. This is an additional cost as most of the above costs are already incurred before Consultant is released the Positions.
Total Cost adding up Pts 1- 8 is approx here is Approx 44- 65 Lacs PA. Say if approx 25 Employees are hired directly during the year at an average salary of Rs 40 K PM, Consultants would have charged Approx Rs 10 - 12 Lacs PA. This gives a saving of Rs 34- 53 Lacs Per Annum by using the services of a Consultant, that too with no headaches of running extra employees, infrastructure etc.
Mukul Gupta
Mukul Consultants India Pvt Ltd
www.mukulconsultants.com, www.executivesearch-india.com

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