Tip #5: Why Recruiters Win – Economy of Scale

Economies of scale are cost advantages that can occur when a company increases its production scale and becomes more efficient, resulting in a decreased cost-per-unit.

This is because the cost of production (including fixed and variable costs) is spread over more production units. For example, this is accomplished when outsourcing recruiting by decreasing the dollars spent on job boards (because the recruiting company absorbs that cost) and, importantly, the time spent on reaching candidates, monitoring job boards, and sourcing passive candidates. Recruiting companies can use economies of scale in other areas as well.

One of the main advantages of using a dedicated recruiter is the vast network of AI, job board programmatic campaigns, and other solutions available only to the recruiting world.

Recruiters can have hundreds if not thousands of job postings for their agency. This gives them the ability to buy in bulk on different job sites. Working with programmatic campaigns allows them to strategically bid on jobs according to the market temperament at any given moment. In that instance, artificial intelligence is working in the background, but skilled and seasoned staffed are constantly monitoring the situation. Vendor partnerships allow solutions to many different problems that can arise in recruiting. Unfortunately, for most small or mid-sized businesses, it is cost-prohibitive to utilize any of the strategies.

A great example of this is posting on Indeed. A typical company might use Indeed to post their jobs. This pay-per-click model needs to be constantly monitored, or it will get out of control very quickly. Recruiters not only have buying power on Indeed, but they can also get your jobs out to every other large job board, Zip, Monster, etc., and every niche board, giving your company a competitive advantage.

The ATS (Applicant Tracking System) you use might get your jobs on those boards, but are they sponsored?
Are they being seen and applied to?
Do you have visibility into where your applicants are coming from?

In our transparent process, we share that valuable information with you and your hiring team.

Time spent is sometimes not an easy metric to quantitate. How much time does your team spend trying to reach candidates, source candidates, and monitor job boards? Outsourcing recruiting can decrease the time to only interviewing qualified candidates. Our economies of scale are effective in this case because of our processes in place and because that is what we do!

Economies of scale work for a reason. Allow a recruiter to use their massive buying power to your advantage. We are well versed in being an asset and an addition to your existing team or being an extension of your HR department, assuming all the talent acquisition duties for our clients. We post hundreds of jobs monthly. This allows us to bid on job boards for page one access and monitor daily what boards are working and which are not and where applicants are applying to maximize budgets. This would be cost-prohibitive for a small or mid-sized company to manage on its own. Maximizing a recruiting agency’s economy of scale to find critical talent allows your team to spend its valuable time growing your business.

Tip #5: Why Recruiters Win – Economy of Scale


Kelly Rowlett Presgrave


Skilled Recruitment for Skilled Trades

We get to know your business, culture and needs. Work With Your Handz can help your team free up their time by providing interviews with only the most qualified candidates.