Many persons try to hire people on their own because they want to save money when starting the business. When you are dependent on venture capital funds to run your business, you may not have the luxury of employing human resource management organizations to hire people for you. However, you must assess cost and benefits and decide accordingly.
You need not save money just because you interview and hire people on your own. The process of
- receiving applications
- perusing them
- analyzing the pros and cons
- preparing list of employees to be called for interview
- conducting interviews and
- finalizing candidates
can take a lot of time.
You may end up spending a few days simply completing administrative tasks because of the large number of applications received. In the meanwhile, you will be flooded with follow up calls of various individuals who are anxious to get the job. From an entrepreneur who is assessing skills of potential employees to a telephone assistant answering calls to applicants -all tasks will have to be performed by you and your staff.
Your staff may be prepared to work without any extra pay but productivity will be hit badly. In such a scenario, you may end up losing more money simply because you tried to complete this task on your own. People either compromise on productivity and profits or make the mistake of focusing on a fixed batch of applications only to ignore the rest. What is the guarantee that the best persons applied first?
To end up with a good candidate after spending a month away from work or to end up with a bad candidate – both these decisions will hurt you badly. When you compare cost of employing professional hiring organizations with benefits, you will find that you have been ignoring many important intangible aspects.
Before you proceed any further, you should carry out an impartial analysis. If necessary, log onto the internet and check out what others have to say about their decision to go in or avoid hiring organizations to take care of the hiring process.