Consider Recruitment Fees in Relation to ROI

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The biggest concern about utilizing the services of staffing and recruiting agencies is the risk versus return. It’s a question every client asks us; how do we measure our return on investment in your work? We typically share some of the metrics to look for in a recruitment agency, as well as how UHC Solutions calculates your specific return on investment for a provider and even an administrative leader.  If your FQHC is wondering about the value of partnering with a recruiting agency this year, this article will help you understand the metrics and potentially lessen your risk.

Calculating Your Recruiting ROI

Many times, FQHCs will not consider partnering with a recruitment agency because of the service fees. But consider the costs of leaving a clinical post unfilled, both in terms of patient volume but also the wear and tear of the vacancy on your existing teams trying to fill the gap.  If you are using locum tenens or interim providers, you add the costs, training, and unknown patient quality to the equation. Too, when patients feel pushed through the system, satisfaction scores can decline.

The problem today is that healthcare models show extensive physician, dental,  nurse and other provider shortages in the coming years. The retirement of the baby boomer population is causing many healthcare organizations to reconsider their medical staffing strategies. This is particularly true for FQHCs, who often have lower compensation and benefits packages over their more urban or larger health system counterparts.  To maximize ROI in these environments, it is imperative that FQHCs make use of the extensive networks built over the years by healthcare recruiting firms. It is a competitive advantage that FQHCs need in order to maximize every resource available to find talent.  Remember, if you do not see a fair and reasonable ROI, you can always option not to hire this person.

This is why FQHCs that make the decision to hire a recruitment agency are particularly interested in calculating their return on investment. We recommend developing key metrics to determine your recruiting ROI before hiring a staffing firm. Typically, some of the key performance metrics you should consider include the cost per hire. This covers all the costs associated with sourcing and hiring clinical candidates, including:

  • The costs of using an in-house recruiter to find passive and active candidates.
  • The costs of advertising the position.
  • The costs of the applicant tracking system used to source the candidates.
  • Job fair expenditures, and more.

But costs per hire should also take into account the volume of labor hours associated with finding a healthcare candidate in today’s challenging market. What are the associated costs of finding, onboarding, and training these candidates? These costs all tie into the cost per hire fees.

FQHCs hiring a recruitment agency must consider the internal per day out of pocket costs of recruiting in-house, along with the number of patients the clinician would see each day. The longer the role remains unfilled, the more revenue is lost. Healthcare recruitment firms reduce the time to hire, so your organization can achieve their maximum revenue potential as quickly as possible.

UHC Solutions ROI Calculator

Typically, UHC Solutions can tell you exactly your ROI based on your public tax returns, your financial numbers, computing free cash flow from this math, and calculation of the ROI from any service fee. Given our typical time to hire stands at 90-days, UHC Solutions can bring clear value to organizations. This year consider a discussion with our team to run the risk versus return numbers. The chances are high that your ROI will be outstanding.

Contact our team of expert healthcare recruiters for more information.