The Cost of Hiring Employees and How Job Recruitment Agencies Can Help
Employee hiring and recruitment takes up a lot of time, money, and resources. From the stakeholders involved to hidden physical and emotional costs, a lot goes into recruiting the right employee. It takes time to find qualified candidates, onboard and train them properly, and address any mistakes made in their first couple of months. When these employees leave, all these resources and time go down the drain. Here's a list to help you understand some of the actual hiring costs and options for low-cost recruiting.
Time is money. The long list of tasks necessary to find top candidates can devour time better spent on other duties. These include:
- Developing the job description
- Creating compelling job ads
- Screening resumes
- Scheduling interviews
- Waiting for candidates’ responses
- Completing background checks
- Contacting references
Job recruitment agencies talk to clients about their labor needs every day. Statistics show 45% of small business owners spend a day or more per week on human resource issues. This quick step saves countless hours per year, which results in cost savings for your company.
Physical and Emotional Costs
Employees are an investment. If you make a mistake during recruitment, your company might lose more than just the initial investment. Careful recruitment is necessary to choose intelligently, with a strategy to ensure their success in the job.
They could also suffer from morale issues and productivity problems. For example, if a new hire is not a good culture fit, the other employees may become annoyed and frustrated. Frustration can lead to loss of productivity, which reduces the company’s output.
This problem can cascade, driving customer dissatisfaction and causing them to turn to competitors instead. As a result, your company experiences a loss in sales and profits.
Also, when employees leave because they’re unhappy with their job experience, you must find a replacement. That could take weeks to months.
A report from SHRM found 83% of HR professionals have had difficulty in their recruitment efforts over the past 12 months.
Not only are you incurring costs similar to recruiting, but this time you’re without the old employee’s skills and knowledge, which causes a loss of productivity.
Job search agencies can help you avoid this domino effect from bad hires. They have the experience and knowledge from years of assisting clients in having successful recruitments that are long-term hires. With their help, you can ensure a candidate is a good fit for the company culture, has the qualifications to do well, and can help you find candidates who will be a perfect fit.
Recruitment uses precious company resources, from the beginning to the end of employment. Costs add up from advertising and interviewing potential candidates, allocating resources for onboarding and training, and time spent training and evaluating employees.
When the wrong candidate is hired, the company uses more time and resources during training sessions. This increases costs. They also spend resources reviewing employee mistakes during their first few months of employment.
Job recruitment agencies can save you time and money because they have years of experience choosing candidates that are most likely to succeed in your company. They know what they’re doing.
Hiring agencies also have a pool of candidates with different backgrounds and skills to choose from, so you don’t have to spend time searching for the right person. They can find those candidates for you. In addition, they know how and where to search and post job ads that attract high-quality applicants. This saves your company time and money.
The cost of recruitment is higher than the initial investment it takes to hire an employee and can lead to a loss in productivity. Time spent recruiting and training employees costs companies more than just the salary they pay them. Job recruitment agencies can help you avoid these pitfalls by saving your company time and money and ensuring successful recruitment.
Traditional Agencies Are Non-Starters for Many Start-ups
Traditional recruitment agencies are not an option when you have a small budget and need to get your company off the ground. They charge a high price, an average of 25% or more of the employee's salary.
For that reason, it’s impractical for start-ups to hire these agencies, which means they must do the recruitment themselves.
Companies don’t have the time or resources to dedicate to recruitment, especially when they are new on the scene. They are still trying to get sales, service customers, and establish their name in their industry.
Diverting energy to recruiting counter-productive without a support team. It’s more important to focus on building relationships and expanding their customer base. However, this means no recruitment takes place, and the company misses the opportunity to hire the best employees for what they need.
A better option is job search agencies that charge an hourly rate instead of a percentage fee.
How a Non-Traditional Hiring Agency Can Help
Employment agencies have a wealth of knowledge and experience from years of assisting clients in having successful recruitments. IsoTalent offers a different option for companies. With an hourly rate, any size business can afford the help of a professional recruitment agency.
Although you might think hiring agencies charge an immense amount per hour, IsoTalent’s hourly rate is not as expensive as it may seem. Plus, various benefits make the cost worth it. One benefit is access to a pool of diverse, qualified candidates that professional recruiters scour to find the best fit for your openings.
They can post job ads in a broader variety of places and have them live longer than you could on your own.
The time saved from recruiting employees is invaluable for small businesses. Their experience means recruiters know how to find the right candidate with less stress, saving time and resources.
IsoTalent is your partner in helping you build a profitable business through successful recruitment. Contact us to discuss hourly rates today!