If you’ve just set out on the journey to hire new employees, you may face some hard truths. Hiring is extremely complex and it takes a lot of skills, patience, time and money to find the right person to fill a position. There are many factors at play and it takes a lot of calculation to figure out what it costs to hire an employee for a specific company. However, most organizations have to go through a similar process to hire new talent.
If a new employee is not a good fit and terminates after a short period of time, then the company may experience a number of additional costs, including the cost to recruit and train a replacement, as well as the unproductive time that was lost.
Internal Hiring Team
If your organization is small then you can’t afford to have a separate hiring team. So they have to take care of other HR activities also which extends the hiring deadline. This will result in prolonged on-boarding of new employees which will lead to extended project deadlines. Business is lost for those extended days. Internal HR is more cost-effective than outsourcing – but only if you’re big enough.
Job Boards Subscriptions
When you’ve come up with a perfect job ad, it’s time to put it out there for the candidates to see. However, placing a job ad does not come for free, and it adds up to the total cost of hiring an employee. There are some job boards that provide free posting services but it will not ensure the correct response you are expecting. You may not shortlist any of the job applicants from such job portals. In India, the most popular job portal’s subscription plan starts from almost half lakh per annum which allows 2-3 free job postings.
Managers and senior executives have to dedicate their time to the shortlisting process. Whether it be conducting interviews or guiding HRs in the shortlisting process or providing inputs at the time of salary negotiations. Most of the companies don’t include this cost.
Once you’ve found someone you want to hire, it’s safe to practice to learn more about them before making an offer. This is why it’s useful to run background checks for prospective employees. You can check for anything from verifying their education, previous employers, to criminal databases. The cost of background checks depends on how detailed you want to go.
New employee costs more than they are earning for the company. When you hire someone new, they most likely won’t be fully productive on their first day of work. In fact, it can take up a few months for them to get comfortable in their new role. On average, it will take 8 to 26 weeks for an employee to achieve full productivity.
You can save money on one of the most important parts of hiring a new employee i.e. sourcing. If you are connected with HR manpower solutions provider then you can save hiring costs up to 50%. As these HR consultancies are experts in hiring for niche profiles also, you don’t have to worry about the job market. lazyHR is one of such manpower solutions provider who is known for providing customized solutions as per Clients’ requirements. To know more about our manpower services contact us at firstname.lastname@example.org / (+91) 83292 95771