9 years ago
January 5, 2015

The Cost of DIY Sales Hiring vs Using a Sales Recruiting Agency

Using a professional sales recruiting agency can help you avoid excessive expenses associated with DIY sales hiring effort.

Rhys Metler

As organizations move to operate more efficiently in a lean economy, there are many adoptable measures to benefit the bottom line. However, DIY sales hiring results in increased costs more often than not; in this arena, using a sales recruiting agency is actually a cost saving measure with lasting benefits to your organization. Measuring the cost of failure with DIY sales hiring against the cost of a professional sales recruiting agency leading a proven recruiting process can help you avoid excessive expenses associated with the mistakes that often accompany a DIY sales hiring effort.

The Cost of DIY Sales Hiring: Spending More for Acquisition Than You Must

The upfront costs for making a sales hire are relatively easy to calculate, yet the acquisition costs for making a sales hire internally are often calculated inaccurately. Being unaware of these costs can put the entire hiring process at risk.

  • The cost of internally producing a job description, which may not perform as expected
  • The cost of placing a job description through media outlets with which your organization has no relationship
  • The cost to perform application and resume screening, including time spent on unsuitable applicants
  • Salary overhead for the time these processes take, measured against postponed tasks that could be directly producing revenue for the organization

With a sales recruiting agency, your bottom line costs for these outlays are clear and in writing before you begin the hiring process. There are no hidden costs for your organization to absorb, versus DIY sales hiring where the costs go unrecognized and can mount quickly even before you are ready to make an offer.

The Cost of DIY Sales Hiring: Spending More By Trying to Spend Less

Some companies engage in DIY sales hiring to save time and costs only to find that these measures result in ballooning expenses after a hire is made. Finding and acquiring the right sales candidate takes time; sales people who can become members of the top tier are in short supply. Organizations that attempt to foreshorten the hiring process as a cost cutting measure frequently find that the hiring process is instead drawn out as poor hiring choices must continually be replaced.

Sales recruiting agencies use proven hiring techniques to determine the strengths, weaknesses, skills, and aptitudes of each sales candidate in order to ensure that the right hire is made the first time. Cycling through the volume of sales candidates on a regular basis, a well-organized hiring process is found that cuts costs using much the same methods as your organization uses to cut its costs: Leveraging relationships with testing module suppliers, background and reference check agencies, and others results in efficiency and discounts that your organization can only access through a sales recruiting agency.

The Cost of DIY Sales Hiring: Spending More in Expenses from a Mis-hire

An inefficient hiring process that is not focused on the unique requirements of sales hiring esults in a higher rate of mis-hires, who have lasting negative impacts on your organization’s profit and revenues. When calculating the expenses accrued from a mis-hire, most organizations know to include the following:

  • Salary, benefits, and expenses paid
  • Training and management costs accrued
  • Cost of office space, supplies, and materials
  • Separation cheques and unrecoverable draws
  • Cost of acquiring sales leads lost
  • Cost of unfilled position while another hire is made

However, the costs of lost opportunities, damage to an organization’s reputation, and even lowered sales team morale can outrank these costs in short order.

The only proven way to avoid these mis-hiring expenses is to partner with a sales recruiting agency that can optimize your sales hiring for first-class results, at a known and measurable cost that avoids hidden DIY sales hiring expenses. Once the true costs of DIY sales hiring are understood, the perspective and cost savings that a sales recruiting agency can bring to your organization is irreplaceable.

Rhys Metler

Rhys is a tenacious, top performing Senior Sales Recruiter with 15+ years of focused experience in the Digital Media, Mobile, Software, Technology and B2B verticals. He has a successful track record of headhunting top performing sales candidates for some of the most exciting brands in North America. He is a Certified Recruitment Specialist (CRS) and has expert experience in prospecting new business, client retention/renewals and managing top performing sales and recruitment teams. Rhys enjoys spending quality time with his wife, son, and daughters, BBQing on a hot summer day and tropical vacations.