The True Cost of Hiring

When your organization has a job opening, it can seem simple enough to fill. After all, the job market is full of qualified candidates and you are offering competitive salary and benefits. But do you know how to budget for the hiring process? Some companies are not fully prepared to deal with the added expense or are not even aware there is a true cost to hiring. Don’t let the expense deter you but rather be aware and plan accordingly. Cost is always involved but you can mitigate the impact of the hiring process on your budget. Knowing the ways it can be done will be invaluable to your overall process.

 

It Costs Money to Hire Someone New

You are probably aware that a new hire will cost you money in terms of resources and taking your current team away from their duties on some days, but do you know the true cost?  They may need to meet with the potential candidates and your HR team will need to be available for meetings instead of working with the current employees. This is just the beginning of the costs you can expect to incur with a new hire. Your teams may need to work overtime to fill the gaps for being pulled away from their daily tasks when they are performing interviews. Not only can this create a workflow stall but you may need to postpone other tasks as well. Having the entire team being present for a potential new hire interview will be invaluable.

 

Sometimes it Doesn’t Work Out

Any time you experience turnover within your team, you are opening yourself up to more expenses. For some companies, you will go through the hiring process and provide things for the new employee such as a desk space, new computer, chair, business cards, and even network access. If the candidate isn’t a strong fit, they will decide to leave or you will need to let them go and everything you provided will be wasted.  In some situations, you can be faced with wrongful termination issues or a range of other legal problems and it goes without saying that this will be a costly hiring and firing. Your reputation can also suffer with the wrong hire as they may speak badly about your organization, which can  cost you in the long run.

 

For every hire, you want to ensure that you perform your due diligence so that it won’t be a costly mistake for your company. Not only will your bottom line suffer with a wrong hire but the overall team morale and productivity can as well. Working with a staffing firm can help alleviate some of those problems and help you find the right candidate the first time around.

Leave a Reply