Building a workforce of highly skilled and productive individuals is an aim that all companies aim to achieve. Whether you’re recruiting to replace an employee, filling a new role, or restructuring , building and diversifying your people is essential for the growth of your business. Achieving this means undertaking some serious recruitment, which has financial implications.
You will of course be aware of the price (salary, pension and benefits) of hiring a new employee – paying their wages comes with the contract.
But what about the hidden costs? To find out where your business could be losing cash, we’ve broken down the processes involved:
1- In-house or external recruiting?
If you’re recruiting in-house, a member of your team will be taking the responsibility. The recruiting manager will most certainly know exactly what they are after. However, there is often a hidden cost attached to their time. The manager could be dividing their time between the usual responsibilities and hiring, which means loss of productivity. This could cause delays in a number of areas, and in turn – cost your company money.
2- Advertising the job:
Advertsing the job is only one minor element of the costs. You will have to consider the time required to research, filter and select candidates who seem good on paper. if you publish the job in the wrong media, the cost could increase the longer it takes to find the right candidate.
3- Handling applications
Filtering through and handling CVs is crucial to a successful recruitment. but it’s also time consuming. Are your employees or sourcing teams experienced in reading CV’s? Poorly trained resourcers mean missing out on the details and taking the wrong candidate to interview.
According to a 2017 Oxford Economics study the overall price of interviewing for a new candidate varies from £700 and £800. This is based on an average amount of time spent conducting interviews and discussing applicants. So in this case, time really does mean money.