Monitoring cost-per-hire can be a difficult act for HR Professionals, but it is essential to the company’s bottom line.
Implementing cost-per-hire savings first requires understanding the costs involved. Cost can be much wider, deeper, and more specific, but the following points out the bulk of the main areas of cost.
HR Staff
• Salaries
• Benefits
• Expenses
Administrative/overhead
• Technology
• Office space and supplies
• Job posting systems
Fees
• Advertising
• Job Fairs
• Executive searches
• Employee referral awards
Candidate Expenses
• Interview – salary of company employees involved in the process as well as any travel expenses involved in bringing the potential candidate in for the interview.
• Relocation packages
• Preliminary testing, drug-screening
• Training programs
How will a staffing agency reduce your cost per hire?
When you partner with a staffing agency, they will save direct cost and indirect cost through time savings. Staffing agencies specialize in the recruiting process, discovering and wooing passive candidates as well as active job-searchers, saving you HR staff and administrative expenses. They advertise, attend job fairs, and offer training to potential candidates. Benefits include:
• Top tier permanent staff. Your staffing agency will find you a best fit. They search for candidates who match your needs, skill requirements, and company culture, improving your company’s retention, thus reducing cost.
• Professional expertise when you need it, only for as long as you need it. When you have a specific project, a staffing agency will provide experienced employees with the necessary specific skills, allowing you to save time and money searching for and then training personnel you will only need on a temporary basis.
• Cost savings in high turnover positions. The reality of some positions is their high turnover rate. A staffing agency will charge you a set fee per hour, while they remain the employer. This means the agency, not you, is responsible for taxes, workmen’s’ com, benefits, etc. Furthermore, they will send you trained, experienced individuals, reducing your cost and cost in training.
• Saving cost and increasing productivity through overtime reduction. When workload increases temporarily, protect your most valuable asset, your current staff. Your staffing agency will send employees to fill in the gap until the need is over, reducing staff burnout, and increasing productivity.
• Finally, reduce the cost of a bad hire. A staffing agency is equipped to offer temp to permanent hires, allowing you the freedom to try out a candidate before hiring him/her as a permanent staff. This reduces the risk of hiring someone promising and then having to let them go while you start the process over again.
In summary, a staffing agency can save you company time and money, and increase productivity and flexibility. Contact Springborn Staffing, an agency you can trust. We will help you save in the Bangor and Portland, Maine area.
