How Much Time and Money Are You Actually Spending on Hiring?

Businesses make critical decisions about how they spend their money on a daily basis. Similarly, they determine which activities deserve the most time, leading them to allocate another valuable resource according to their goals and priorities. Often, hiring is a critical part of a company’s success, and managing it costs both time and money.

Even though most organizations are fully aware that hiring is a crucial but costly activity, many overlook some of the associated costs, causing them to underestimate their investment. If you want to get a better look at how much time and money you are spending on hiring, here are some essential points to examine.

Managing the Hiring Process

Most small business owners spend about 40 percent of their time on work tasks that don’t actually generate income, such as hiring. This means these companies are losing money by handling hiring internally, as redirecting this time to other activities could help the business grow and thrive.

Even companies with larger workforces spend a significant amount of money on managing the hiring process. Keeping recruiters and other HR personnel on staff to make recruitment and screening activities possible comes with a price tag. For example, a single HR manager can require $91,000 to $120,000 a year in salary.

Usually, organizations have internal staff handle each step of the process, including everything from writing job ads to screening applicants to scheduling and conducting interviews to generating job offers. As a result, more time is spent on hiring than many businesses realize.

Then, you can add in a variety of other costs and time investments. For example, you have to pay for every background check you run. You have to dedicate time to onboarding and training. All of these expenses and obligations can add up quickly, dramatically increasing your hiring costs.

Alternatively, companies can use a workforce management agency to handle many of these tasks. While the cost associated with partnering with a third party can vary, it can be incredibly cost-effective. Businesses gain access to hiring professionals without having to add full-time HR team members.

Recruiting the Right Candidates

Recruitment alone can be a costly and time-consuming process. Beyond creating vacancy announcements, companies may need to dedicate time to posting the details on various job boards and social media accounts, potentially having to update and reformat the content for every platform.

While posting on social media is usually free, promoting the post will come with a price tag. Additionally, many job boards charge fees for listing a vacancy announcement, often requiring payments above $300 for a single ad.

Plus, attending job fairs and networking events can require a significant amount of time beyond the events themselves. You have to prepare and pay for materials, transportation, signage and more just to be ready to showcase the company. In some cases, you also have to pay for the privilege of attending, adding another financial burden.

Ultimately, hiring a single candidate can actually cost thousands of dollars, with one study showing the average cost exceeds $4,000 per new employee. Luckily, you can decrease your hiring costs by partnering with a recruitment firm that can reduce your time-to-hire and manage the entire process. If you are interested in learning more, the team at Apogee Managed Solutions can help. Contact us to discuss your hiring needs with one of our knowledgeable team members today and see how our services can make hiring more affordable quickly and efficiently.

 

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