Recruitment is often seen as a necessary expense—but few businesses truly understand how costly it can be when done inefficiently.
Whether you’re managing hiring in-house or partnering with an agency, the costs go far beyond salaries and job ads.
1. Agency Fees vs. Internal Costs
Yes, recruitment agencies charge fees. In South Africa, these typically range from:
15% to 20% of the candidate’s annual salary for standard roles
20% to 25% for specialised or executive positions
For example, hiring for a role with a salary of R300,000 per annum, could cost between R45,000 and R75,000 in agency fees.
But managing hiring internally isn’t free either. The true cost of employment includes:
- Salary and bonuses
- Social security contributions (UIF: 1%, SDL: 1%)
- Pension and benefit costs
- Onboarding and training
- Equipment and facilities
- Legal and HR compliance
- These additional costs can increase the total employment cost by 10–30% beyond the base salary.
2. The Hidden Cost of a Bad Hire
Hiring the wrong person is more than a temporary inconvenience—it’s a financial setback. Research shows:
- A bad hire can cost up to 30% of the employee’s annual salary
- Lost productivity, team disruption, and re-hiring expenses add up quickly
- For executive roles, the cost of a bad hire can exceed R250,000.
- And that doesn’t include the intangible costs—like damage to team morale or client relationships.
3. Why Strategic Recruitment Pays Off
Working with a generalist recruitment partner like us means:
- Faster time-to-hire
- Access to a broader talent pool
- Reduced risk of mismatched hires
- More time for your team to focus on growth
- We understand the nuances across industries and roles, and we tailor our approach to match your company’s culture and goals.
Final Thought
Recruitment isn’t just about filling seats—it’s about building teams that drive success. Whether you’re scaling fast or hiring for stability, investing in smart recruitment strategies today can save you thousands tomorrow.