Hiring new staff members costs your company money. Not only do you experience a downturn in productivity if current staff members leave, you also need to go through a job search process to identify new talent. This can be time-consuming and costly… but how costly? Finding out your company’s true cost per hire is an important metric so you can better understand the expenditures to budget for when bringing a new person on board.
Many businesses underestimate the true cost per hire, but calculating this does not have to be complicated. Here are three areas businesses need to be aware of.
The costs of finding candidates
How much do you spend on job fairs, campus recruiting, advertising and recruiters? Do you pay a bonus to employees who refer a good potential worker to your organization? All of these costs need to be added up to help determine the cost per hire.
The costs of evaluating candidates
There are expenses associated with choosing the best person for a job from a list of applicants. You have to pay for the time a hiring manager and other staff members spent interviewing a job candidate. You may also have to pay for drug testing or background checks if you impose these prehiring requirements on job seekers.
The cost of training new hires
Your costs are not over when you bring someone on board. You have to train the person in company processes and protocols. If you made a bad hire, this investment is lost and you will be starting all over from square one. Streamlining your training and making certain you select only the most qualified candidates can be the key to avoiding unnecessary repeat hiring expenses.
You can help keep your cost per hire as low as possible by outsourcing the hiring process to a skilled staffing agency. Vanguard Staffing has provided assistance to countless clients in finding skilled staff members in a variety of fields, including accounting and administrative work. Contact us today to find out more about how our staffing service can help you hire the most qualified candidates with the minimum of hiring expenditures during the process.