The average cost of hiring an employee for a company is around $4,000. It is a required investment that will pay off if you choose a candidate who will become a high-performer. Hiring expenses are an unavoidable element of operating a company.
Then there are the costs of hiring the incorrect employee, which might be significantly higher. You know all the work given to a lousy hire is no longer being done when you have to let them go. This may necessitate hiring temporary or hire a freelancer, paying other staff extra to make up for a lost time, or failing to meet customer deadlines.
All of these factors can impair employee morale and harm your bottom line.
However, there are other costs associated with a vacant post that is often underestimated. You probably don't expect anything to go wrong when you hire someone new. After all, if you knew they weren't going to work out, you wouldn't have employed them in the first place, right?
When you have already invested your time and resources into Flexi staffing recruitment, hiring, and onboarding an employee you believed was a good fit, it's a rude awakening to discover they aren't. Now you'll have to go through the entire process again to find a replacement, something you probably didn't account for in your budget or timeframes.
So, how much does a poor hire cost? According to experts, 41% of employers believe the cost of a terrible hire is more than $25,000, and 25% believe it is more than $50,000.
This was highly dependent on the position – a higher-paying post that needs more specialized skills and expertise will have a higher cost of employee turnover because finding a qualified successor will take longer.
Now that you understand the total cost of a terrible hire, you realize that employing the wrong individual for the job isn't a minor oversight. You're undoubtedly thinking to yourself, "How can my company avoid these costly outcomes and reduce our overall hiring costs?"
Using professional IT staffing services boosts your odds of getting the best applicant for the right job the first time, effectively lowering your risk of having to deal with the cost of wrong hiring. From a financial standpoint, there are various advantages to shortening deadlines and enhancing cost-efficiency.
While some staff augmentation companies in India and businesses believe that external staffing services are more expensive than internal recruitment efforts, using experienced recruiters or headhunters can help you save money on hiring a new employee. Here are some instances of how this works in practice.
EXTREMELY PRICEY TURNOVER EXPENSES SHOULD BE AVOIDED.
Recruit turnover is quite costly, and it is sometimes overlooked when planning your hiring budget. If a new hire does not necessarily work out, you will lose the money you spent on recruiting, including interviewing, employing, and training them. Then it's time to start all over again.
Using their established methodologies, enormous resources, and staffing knowledge, professional Flexi staffing firms and headhunters assist decrease the risk of new hire churn by placing the appropriate candidate in the proper role the first time around. You'll be less likely to have to compensate for a new employee again if you do it this way.
When compared to physical interviews, video interviews are always less expensive. You may be required to pay for transportation, housing, and meals for physical interviews. In addition, your recruiter must devote time to dealing with the individual when they arrive at the office for the interview. Nowadays, video interviews are popular since they allow you to connect immediately with the candidate.
You can readily witness the candidate's behavior, gestures, and expressions, which aids conversion.
UTILISE SOCIAL MEDIA
It is one of the most effective ways to quickly engage with hundreds of candidates while promoting your employer brand to a digital virtual team. It is the most cost-effective way to advertise positions and communicate directly with prospective individuals. LinkedIn, Twitter, and Facebook are the most popular social media platforms, using Instagram and Pinterest.
HAVE A WIDE RANGE OF OPTIONS
Top-tier talent is attracted to reputable professional staffing companies, which gives them access to a large pool of eligible individuals. Working with a recruiter who is continually developing their professional network and maintaining ties with both active and passive job seekers means that they can make connections on your behalf.
A job listing by an internal recruitment team may not attract nearly as many candidates, which means you could be missing out on your ideal employee simply because they didn't see your job posting on the freelance job portal. There is no necessity for the costs associated with it — when you can place the most competent individual in any given position the first time around.
PARTNER WITH THE RIGHT RECRUITING AGENCY
In the long term, partnering with professional hiring firms or headhunters is more cost-effective and efficient than using in-house recruiters entirely. Using experienced recruiters can save you money, time, and headaches. Whether your firm is large or small, recruits frequently or infrequently.
If your temp work agency wants a partnership that will supply you with the most excellent applicants in a cost-effective and timely manner, you must choose a recruiting firm that prioritizes your needs.
TAKE YOUR TIME
According to studies, the necessity to fill the job fast was the primary reason for hiring the wrong individual for 38% of respondents who made a terrible hire. While your company wants to minimize missed productivity due to a vacant position, settling for any replacement rather than the best fit could end up costing you more in the long term.
If an employee is let go or goes for another opportunity, and you rush to find their replacement with just-in-time hiring facilities. You have now spent twice as much on recruiting and onboarding.
Working with a recruiter can speed and streamline the hiring process, allowing you to get new hires up and running faster.
CONDUCT GROUP INTERVIEWS
Because the first hiring cycle for an individual candidate and a group of candidates can be the same, conducting the interview individually will increase hiring costs, time, and effort.
Instead of conducting separate interviews, you should arrange a group interview to ask questions that apply to all candidates. This saves time, effort, and money, allowing you to identify the best applicant among them quickly.
Another option is to participate in a referral program. Temporary resource agencies issue referral invites to all employees in the referral program, and employees refer one or more prospects from their network. Friendships, relatives, and family members are all possibilities for the candidate. If the referred candidate is hired, the employee will be compensated with a bonus or a gift certificate.
When an employee knows both the company and the candidate, the chances of retention are higher than when hiring without a reference. Furthermore, if you have an ATS or recruitment system with a referral management option, there is no fee to operate the referral campaign.