The True Cost of Hiring – and How to Reduce It
As we emerge from the pandemic in 2021, many businesses and nonprofits will be hiring employees to fill existing and new positions. With budgets especially tight in the post-COVID era, it will be critical to increase staffing while keeping recruitment-related costs down.
As you’ll see, handling the hiring process yourself is likely more expensive, time-consuming, and risky than you think. For many organizations, the better and more cost-effective option is to make your first hire a trusted recruitment agency.
The true cost of hiring
According to Forbes, companies that use internal processes to hire new employees spend an average of 42 days to fill a position, at an average cost of $40,000.
Every step of the hiring process takes time and money that many organizations cannot afford:
- Background checks
- Onboarding and training
- Payroll costs, salaries, insurance, legal fees, etc.
Every hour spent on hiring-related tasks is an hour not spent on other business-critical activities.
Outsource for greater efficiency
Your hiring needs probably fall into one of these three categories, all of which may benefit from recruiting agency:
- Infrequent hiring: If you hire only one to three employees a year, it’s expensive to have an in-house recruiter on staff. Outsourcing to full-time professionals can be more efficient and help ensure you find the right employees to do the job.
- Regular hiring: If you hire once a month or more and have an in-house team, outsourcing can help them screen candidates and perform other tasks that can otherwise take hours of their time.
- Frequent hiring: If you hire all the time, an agency can effectively act as your HR department, so your in-house teams can focus on training and other tasks.
Other benefits of recruitment agencies
Outsourcing to an agency is often a more cost-effective option. It can also be the right choice for other reasons, including that experienced recruiters know how to find the best talent and have networks they can lean on to find candidates you might otherwise miss. They can also help you fine-tune and speed up your hiring process, so you can fill your open positions faster.
Hire an expert team
Insero & Co. has decades of experience working with businesses and nonprofits of all sizes. Our recruiting services team can help you find better candidates in less time and at a lower cost, so you can grow your organization efficiently.