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4 Reasons hiring Recruitment Agency is Cost Effective

It's easy to provide a specific cost comparison between internal recruiters and a recruitment agency by knowing more about the specific needs and circumstances of your business. However, here is a practical case study to illustrate how these costs might be compared:

Imagine that your business is looking to hire a Customer Representative and has the option of using internal recruiters or a recruitment agency. Here are some factors to consider when comparing the costs of these options:


1. Salary and benefits:

  • Internal recruiters: You have two in-house recruiters on your HR team, each earning a salary of AED 120,000 per year (equivalent to AED 10,000 per month) plus benefits. The total cost of these recruiters is AED 240,000 per year.

  • Recruitment agency: The recruitment agency charges a fee of 15% of the successful candidate's first-year salary, which is AED 120,000 (equivalent to AED 10,000 per month). The total cost of the agency's services is AED 18,000.

2. Advertising:

  • Internal recruiters: Your in-house recruiters use a combination of job boards and social media platforms to advertise the open position. The total cost of advertising is AED 5,000.

  • Recruitment agency: The recruitment agency includes advertising as part of their fee and does not charge any additional fees for advertising.

3. Time:

  • Internal recruiters: Your in-house recruiters spend a total of 40 hours each on the recruitment process, for a total of 80 hours.

  • Recruitment agency: The recruitment agency estimates that the process will take 20 hours of their time.

4. Training and development:

  • Internal recruiters: Your in-house recruiters attend a training seminar on recruitment best practices, which costs AED 5,000 in total.

  • Recruitment agency: The recruitment agency includes training and development as part of their standard services and does not charge any additional fees.

Based on these figures, the total cost of using internal recruiters for this recruitment process would be AED 250,000 (AED 240,000 salary and benefits + AED 5,000 advertising + AED 5,000 training), while the total cost of using a recruitment agency would be AED 18,000 (15% fee of the successful candidate's first-year salary). In this case, using a recruitment agency would be significantly less expensive than using internal recruiters.


Of course, this is just a hypothetical example and the actual costs will depend on the specific needs and circumstances of your business. It's important to carefully consider all of the factors that may impact the cost of internal recruiters versus a recruitment agency and to create a detailed budget and cost analysis to help you make an informed decision.


What Tanmyah Consultancies can help you in this case?

  1. Save cost by almost 80% with 3 months FREE replacement in the candidate left the company during this course. *

  2. Get your candidate within 10 days, and be available to join immediately. A backup will be built just in case of immediate hiring or/and replacement.

  3. Represent your company in public events, career fairs, and government councils. *

  4. Regular support, advisory, and career counseling to the hired candidates for 3 months for FREE.

What are you waiting for, contact us to start hiring your Super-Star candidates.


* Terms and conditions applied.

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