Recruiting new employees is usually a complex and costly process for companies, with many hidden or unseen costs that are often overlooked. Do you know where all your money is going during recruitment? Some common costs include:
1. Advertising and recruitment fees
Companies may have to pay advertising and recruitment fees to job boards or professional networks. These fees can add up quickly, especially if you’re paying for a listing, and advertisement, in multiple different locations.
2. Time and resources
The process of recruiting new employees takes time and resources, including the time spent reviewing resumes and conducting interviews, as well as the resources used to coordinate the recruitment process. This can be especially costly for small businesses that may not have dedicated HR staff.
3. Loss of productivity
The recruitment process can also disrupt the productivity of existing employees who may have to spend time reviewing resumes, participating in interviews, or helping to train new hires. Today’s job market moves quickly, and it requires a lot of work to find and hire the right candidate.
4. Training costs
Once a new hire is brought on board, they will need to be trained, which can be a time-consuming and expensive process. This can include the cost of training materials, time spent by trainers and managers, and any travel expenses associated with training.
5. High turnover
If a new hire doesn’t work out, companies might have to start the recruitment process all over again, leading to a cycle of high turnover. This could strain your whole team and has its own host of associated costs.
6. Brand damage
A poorly executed recruitment process or a bad hiring decision can damage a company’s brand and reputation, making it more difficult to attract top talent in the future. People want to work at stable and welcoming places, and word will spread quickly if it’s not the case.
7. Possible legal costs
If a company violates equal opportunity laws or engages in discriminatory practices, they may face legal penalties, which can be costly and time-consuming. It’s important to follow all relevant laws and regulations when it comes to the recruitment and hiring process.
With all the costs associated with the hiring process, it’s important that companies take the time to do it right and be efficient. That means making sure job description are compelling and accurate, hiring managers are adept at determining the exact skills job candidates have, and the interview process is completed in a reasonable time frame so that the best candidates don’t fall through the cracks.
A great way to reduce risk and unseen costs is to work with an experienced staffing agency! Check out this article on How an Established Agency Will Find You the Best Candidates. And if you’re looking for health care staffing help in southern New England, reach out to Arbor Associates today. With over 40 years’ experience in health care staffing, we know how to do it right! Give us a call today.