Evaluating ROI: Measuring Success with Recruitment Companies in UAE

 

We’re witnessing a major change in recruitment practices this year because of the widespread use of generative AI and the shift to an employer-driven market. And while some businesses may face layoffs or hiring freezes, there’s still fierce competition for skilled talent—and this is making it more difficult for organisations to build high-performance teams. In fact, 90% of hiring managers say that they find it challenging to source skilled candidates while 52% of recruiters lose great hires to their competitors. 

How do you stay competitive? Consider engaging recruitment companies in the UAE. Professional recruitment companies can streamline your talent acquisition process so that you can swiftly access highly specialised candidates, making it easier to fill critical roles with top-tier talent. What’s more, working with external recruiters gives you access to their extensive networks and industry expertise. At the end of the day, you focus more on your core business activities while they handle the labour-intensive aspects of candidate sourcing and selection.

But like many employers, you are probably wondering if it makes financial sense to work with recruitment companies in the UAE or if it is more cost-effective to simply expand your own internal HR team to keep up with your growing manpower requirements. To answer this question, you need to determine the return on investment or ROI of hiring a recruitment firm. 

How to calculate the ROI of hiring recruitment companies in the UAE

To calculate the return on investment of hiring recruitment companies in the UAE, you need to compare the costs of their services to the value they bring in filling your open positions using this formula: 

ROI = (Benefits - Costs) / Costs x 100% 

Costs

First of all, calculate the recruiter’s fees (whether it’s a flat fee, a percentage of the filled position's salary, or a combination of both). Then, calculate your internal costs—the time and resources your HR team spends on recruitment efforts if they're outsourced to the agency.

Benefits

Next, look at the benefits. Remember that recruitment companies generally have a wider network and expertise to find qualified candidates quickly. They can also screen and assess candidates based on your specific needs, leading to improved quality of hire and better employee fit. These experts can hire fast to reduce your overall recruitment spending. Because they can fill vacancies promptly, they reduce the workload of your internal HR employees.

Ask yourself these questions before hiring recruitment companies in the UAE:

·   Can they reduce your cost per hire? Compare the total cost of hiring through the recruitment company (including their fees) to your average internal cost per hire. If the recruitment company can negotiate better terms with candidates and/or provide economies of scale in their hiring process, then they can drive down your overall cost per hire.

·   Can they reduce your time to hire? Quantify the cost of a vacant position per day, including salary, benefits, lost productivity, etc. Multiply that number by the number of days you will save when you use a recruitment company in the UAE. If the recruitment company has a large candidate database and efficient screening processes that expedite hiring timelines, then they can reduce your time to hire significantly. 

·       Can they improve the quality of your hires?To find out, estimate the cost of a bad hire. Include the costs you would have had to pay for training, lost productivity, severance, and other such factors. Calculate the percentage of successful placements by the recruitment company and factor it into the cost savings. If the recruitment company specialises in your industry and has a track record of placing candidates who stay long-term and perform well, then they can enhance the quality of your hires.

Work with the best 

At NADIA Global, we pride ourselves on being a trusted firm when it comes to recruiting and executive searches. Many global organisations rely on our 40 years of experience in human capital management to help them find world-class talent. In addition to helping you find qualified candidates, we will work with you to understand and evaluate KPIs relevant to your hiring practices, such as cost per hire, quality of hire, talent pool diversity, candidate experience, and offer acceptance rates. We will also work with your hiring managers to help identify the best hires based on your unique requirements. 

Effective recruitment practices for success 

Our extensive industry experience puts us among the top recruitment companies in the UAE. We have built a strategic presence in the region, and this makes us effective at finding qualified candidates for various industries, including real estate, consumer goods, legal, retail, oil and gas, hospitality, shipping and logistics, IT, and banking. 

Your partner for recruitment success

At NADIA Global, we aim to be beyond a recruitment agency that can help you find the best employees. Our seasoned recruitment consultants are committed to deeply understanding your organisation’s requirements and sharing our market knowledge and professionalism with your recruiting team.

As your partner in success, we offer access to our carefully curated database of job-seeking professionals. This allows us to recommend highly competent people who fit your needs. Plus, we can connect you with local professionals to support your nationalisation scheme goals.

Experience better talent recruitment and retention with our recruitment services.

Allow us to provide the insights, best practices, and strategies required to streamline your recruitment and HR practices. Contact us today to talk to our recruitment experts.