How much does it really cost to staff an office of technical professionals? A good number of human resource and recruitment experts will speak to you regarding agency fees, marketing, and campaign costs.
However, is that it? The majority of companies undervalue the role of outside resource providers while they’re looking to cut costs, which frequently leads to poor decisions that increase recruiting expenses. Therefore, what are the hidden costs of recruiting?
Technical Recruiting Administration
Whether you use onsite staffing or human resource team or not, somebody in your group is accountable for recruiting, a procedure that can be long and time-consuming.
From writing the job description, launching a job campaign to get fresh applicants, handling in-bound applications, phone screening applicants, responding to emails, conducting face-to-face interviews, conducting background checks, checking references, presenting the offer, and after all that – dealing with candidates that reject your offer, it’s easy to see that effective recruiting has more hidden costs than meets the eye.
Time to Employ
A good number of companies track the time it takes to employ people, however completely overlook it as an overheads expense. Given the usual technical staffing environment, the normal hiring duration is 10 to 12 weeks (from job opportunity to job offer), throughout which time the position is vacant. For that time there is either no output or efficiency at that position, and sometimes there is more expensive contract labor in place.
Additional main overhead is the time the hiring manager spends in the technical staffing procedure, stating roles, interviewing, and assessing CVs, and, since more than 50% of the offers made are declined, the process can be repeated more than once. This cost is unchanged whether applicants are recruited through outsourcing or in-house.
In summary, the exact cost of technical staffing and recruitment is not simply how much you compensate your recruiters, advertisement, and agency fees, without a doubt this is the tip of the iceberg that has an effect on every part of your business productivity and performance.
A typical $70,000 position can cost twice in actual and hidden costs, even founded on standard figures, and whether you employ agencies or internal recruiters the end result is the same, total recruitment costs are roughly double the base salary.