Hiring is a lot like dating. You want to find the perfect match and the right fit. In order to do that, you ask a lot of questions, spend money on and time with the person, listen, negotiate terms, see how they like your friends/co-workers and hope for the best. But, unlike dating, hiring can be a very expensive proposition.
In fact, some researchers estimate it costs $3,500 and up to hire a new employee. Why so much money?
If you’re the person in charge of hiring at your company, consider all the steps you must take to even attract applicants:
- Coordinate requirements with the department manager.
- Write—or help write—a job description.
- Get the job and salary approved by management.
- Post the job internally and then promote it on external recruiting websites.
- Pay posting fees and check the external websites.
- Contact friends and associates to spread the word.
- Wait for applications to arrive.
Then, if you’re lucky and people see your job post, the applications begin pouring in. Then you must:
- Screen every CV and cover letter.
- Pare down the list of candidates.
- Check references.
- Forward your initial selections.
- Set up and coordinate interviews.
- Contact people who didn’t make the cut.
- Work with the hiring manager.
- Prepare an offer for the top candidate.
- Make a second offer if the top candidate doesn’t accept.
All these steps—and many more—take time. In fact, the average interview process usually takes 23 days. This long waiting period costs your company money. In addition, it’s frustrating for any potential job applicant. If the process takes too long, you risk losing new employees to other companies.
Once someone accepts a job, the money meter just keeps running. Following are just a few tasks the new hire may need to complete. The first three, if required by your company, cost even more money.
Your new candidate may be busy:
- Passing a drug screen.
- Completing a personality assessment.
- Undergoing a background check.
- Filling out paperwork for taxes, medical benefits, retirement, and workplace policies.
- Having a photo taken for an id badge.
As the person handling all those details, you must spend your time coordinating the process. Often, you’re juggling multiple applicants as well as doing your regular job. Your time is worth a lot. And most of these logistical tasks take place before the new hire even sets foot in your business.
It’s the first day of work for your new employee. Now you can reap the rewards of all your challenging work and let the new hire start earning money, right? No. It usually takes at least five months before employees reach full productivity. That’s a long time to wait for a return on your investment.
New hires must complete orientation, undergo on-the-job training, and learn the culture and rhythm of their workplace. These steps are hard to quantify; these things take time.
As the designated human resources associate, your workload increases for each new employee. According to the U.S. Department of Labor, you must maintain specific records for every person who works at your company. These include files for:
- Employee’s full name, social security number, mailing address, birthdate, sex, and occupation.
- Time of day and day of the week when employee’s workweek begins, hours worked each day, and total hours worked each workweek.
- Basis on which employee’s wages are paid (weekly, bi-monthly) plus regular hourly pay rate.
- Total daily or weekly “straight time” earnings for each workweek and total overtime earnings for each workweek.
- All additions to or deductions taken from employee’s wages.
- Total wages paid each pay period, the date of payment, and the pay period covered by each payment.
You may also be required to coordinate insurance benefits, worker’s comp coverage and claims, workplace training, immigration documents, vacation and sick requests, and many other human resources tasks. That’s a lot of juggling balls in the air.
Despite all your careful work and screening, employees do leave. And when they walk out the door, they take a lot of money—and skills—with them.
Each time a company replaces a salaried worker, the average cost is six to nine months’ of their salary. If it’s a management position, it may take up to 150 percent of the salary to replace the person. For lower paying jobs, the cost of replacement is 16 percent of their annual salary.
Then you must factor in costs that are harder to quantify. If you have high turnover, how does that affect the performance and productivity of other workers? If a current worker is always the one training new hires who then leave, what affect does that have on his/her view of the company?
If you’re not conducting detailed exit interviews, you’re losing an enormous amount of data. The information you gain during these formal interviews could be used to drastically reduce turnover and strengthen retention.
How Premier Staffing can help
Save yourself time, stress, and money by working with a professional hiring agency like Premier Staffing. Spend your time running your business and being profitable, rather than tracking down qualified job candidates.
Since 2011, we’ve helped hundreds of Eastern Iowa businesses find qualified temporary workers. Premier Staffing provides a diverse workforce, including people who seek light industrial, clerical, management, and salaried staff positions. Our hiring agency takes care of all the logistics and paperwork, including advertising, recruitment, payroll, taxes, insurance, and worker’s compensation. Our doors open at 6:30 each morning so we can fulfill all your staffing needs, including seasonal and part-time employees.
Another advantage of working with Premier Staffing? You can hire someone on a temporary basis and see how he or she fits into your workplace. It’s like an engagement period. We believe this is mutually beneficial. It gives both you and the employee time to see if the job is a good fit. If you’re delighted with the person’s performance and attitude, you can then hire them full time. We’ve also found this trial period boosts long-term employee retention rates.
Contact Premier Staffing today to learn how we can help you with all your hiring needs.