Business owners thinking about their cost per hire need to think much more broadly than just salaries and any benefits, of course. The costs to recruit, train, and onboard employees all need to be factored into any cost per hire.
Factor in the Costs to Recruit and Train
How much are those costs? Well, some human resources people place the cost of recruiting and training people at six to nine months of an average salary. If you’re looking for an employee paid $30,000 in salary, in other words, you’re looking at anywhere from $15,000 to $22,500 just to get them in the door and doing the work you need.
Even if you’re paying hourly wages rather than a salary, the cost can be steep. Estimates place the cost of replacing hourly employees at 16% of their salary.
Does that seem like a lot? It’s really isn’t when you think about what goes into getting someone in the door and working. Someone needs to determine what goes into the job description, write it, and post it in a place where potential employees will see it.
Then, someone needs to go through the applications. Some potential workers to be interviewed need to be chosen. The interviewing needs to be done. And that’s all before the employees are even hired.
Then, they must be trained and onboarded with procedures and policies.
The Cost of Bad Hires
In addition, of course, employers need to factor in potential costs of a bad hire.
What’s a bad hire? Well, it could be someone who simply can’t do the work you need well enough. It could be someone who doesn’t show a good work ethic. Perhaps they are always late or call in sick a lot. Maybe they aren’t team players and don’t get along with either colleagues or supervisors.
The cost of bad hires can mount up. First, you may have to let them go. Then, your costs to recruit and train start up all over again.
Second, though, bad hires can be bad for your entire company. Their lack of a good work ethic might spread to other employees, demotivating them and causing them to also be late or call in sick. It can lead to problems with shifts or with supervisors being ongoing.
How a Staffing Agency Can Help
How can you minimize your costs to hire and reduce any chance of a bad hire? Let a staffing agency help. We have access to a wide pool of potential candidates looking for jobs like yours. We can help you craft job descriptions, recruit and do the job interviews. We can check references and screen employees to determine past performance.
At Debbie Staffing, we’re happy to help. Contact us today.