Replacing your company’s most valuable assets may cost more than you think!
First there are the intangible aspects; skills and knowledge they have gained through their employment, that is difficult to put a dollar figure on but are highly valuable. Then comes all the costs that your company will acquired in order to fill your newly open position. These costs could include:
- Cost to advertise Total Cost = A + X(B + C + D + E + F + G)
- Time to screen candidates (X = your hourly wage)
- Time to contact candidates
- Time to take application
- Time to interview candidates
- Time to check references & background
- Time to extend an offer
Then think, if your offer is refused, you can start this whole process over again and double your costs!
Let’s look at an example:
If you spend $200 advertising, receive 150 resumes, spend 5 minutes reviewing each resume (12.5 hours), narrow the list to 15 you’d like to interview, contact the candidates (4 hours), have them come in to fill out an application and interview (2 hours each for 30 hours), narrow the list further to your top 3, conduct 2nd interviews with the top 3 (6 hours), check references and background (8 hours), conduct a 3rd interview with your top candidates and make an offer (2 hours), your time invested would approach 62.5 hours. If your time is worth $25 an hour you would be approaching a cost of around $1,400. If your offer is refused and you have to start over—you can easily look at another $1,400. Add to this cost, cost of not having someone on the job for an extended period of time, or the cost of hiring the wrong individual and your costs can soar.
200 + 25 (12.5 + 4 + 30 + 6 + 8 + 2) = $14,062.50
Then there are some indirect costs to think about as well.
- It takes time to respond to your applicants. In addition to the time costs, failure to respond can leave a bad impression with applicants, who may be future customers
- There is a cost if you advertise too much. What message is sent if consumers see the same position advertised for weeks at a time?
- The costs of a bad hire. In addition to incurring the same recruiting costs again, there are the additional costs of unemployment, workman’s comp, lowered morale, and lost productivity.
City & National Employment literally does ALL OF THIS for you!
Saving you time and money. We have been in the Staffing & Recruiting Industry for over 60 years giving us an extensive background of conducting this whole process.
Let us help YOU get more work done and get it done faster by working with us in filling your next or current job openings.