First, let’s take a quick look at what it costs to hire a new employee, then we’ll take a look at some of the new ways employers are
hiring top talent today for less than they were in the past.
The Costs of a New Employee
According to this study by the Society for Human Resource Management, employers will need to spend the equivalent of six to nine months of an employee’s salary in order to find and train their replacement.
For a senior executive who makes the Canadian average of $162,800 (as per Glassdoor), that’s over $80,000. For a business analyst who makes the Canadian average of $64,000 per year, that’s over $32,000.
And that’s just to hire and train them. What about the other costs to your company like:
- Interview expenses: The lost productivity of your current employees involved in the interview process, plus any other resources needed like rooms or conference/video conference lines.
- Low productivity of the new hire: Josh Bersin of Bersin by Deloitte says it may take anywhere from one to two years for them to get fully up to speed.
- General training costs: You invest 10-20% of their salary in training costs over a 2-3 year period, money which is lost if they leave.
- Higher support costs: Let’s face it, new hires make a lot of mistakes and generally work more inefficiently than current employees, so your support costs increase during their initial tenure.
- Low engagement and productivity of current employees: Current employees often have lower productivity as they train and/or assist new employees. They also may have lower engagement rates if they see a high turnover rate of employees, decreasing their morale and causing them to disengage from their work.
All right, how can you lower your overall recruiting costs?
How to lower recruiting costs
There’s the free or paid job boards, however you usually end up spending a lot more than you think through time and effort to wade through all the candidates that apply. Not to mention the fact that there’s no guarantee for the person you do hire, so if they end up leaving shortly after arriving, you’re out the posting costs PLUS all the training, on-boarding, and loss of productivity.
Newer Ways to Recruit for Less Are Emerging
Lately there has been an explosion in outsourced recruitment services that offer a different twist on the usual recruiting agency. These companies offer a combination of streamlined processes, tools, data, and technology to help source and vet top talent for their clients. They often offer scalable, subscription-based services that help companies of all sizes source, manage, and hire top talent.
Employers are jumping on board with these outsourced recruiting service companies mainly because they seem to offer a better return on their investment. They feel they’re getting a higher quality service than a paid job board, get a guarantee for their “purchase”, and are serviced “better” than they were in the past. Yet an issue still exists.
Quality Is Still An Issue
Whether it’s the quality of the candidates or the quality of the recruiters sourcing candidates for the recruiting service, quality is still a major issue. Employers who use these services may be impressed by all the buzzwords and jargon the service uses, however at the end of the day it comes down to quality; they want quality candidates to interview for their vacancies. So if the recruiters aren’t doing a good job of finding top talent for them and the service isn’t doing anything to attract quality recruiters to partner with, employers lose out.
Okay, this part may seem a little biased, but we’re very proud of the company we’re building. Here at Direqlink, we feel that we’ve solved the quality issue many employers face today.
We’ve created a hiring platform that helps employers cast a wider net to find top talent for their vacancies. We work with only proven agencies that are committed to finding and sourcing top talent for their clients. Our platform lets employers cast a wider net to fill their vacancies, gives them a voice through a 5-star rating system, gives them access to a streamlined hiring process, but most importantly, saves them money with a flat fee pricing model and guarantee.
Instead of paying a percentage of the candidate’s base salary to the recruiting agency, Direqlink’s flat fee model is flexible to suit any budget. Not only that, we offer a 100% guarantee. If the candidate does not work out for you within the guarantee period, you can use that fee to find a new candidate through us or we’ll refund 100% of the fee back to you. Period.
To find out more about Direqlink and how we’re helping shake up the recruiting landscape, visit our website. If you’re fed up with your current hiring process and want to get started with a more streamlined, high-quality, low-risk hiring process, contact us today. We look forward to working with you.