From start to finish, how much does it really cost to hire a single worker? If you have a number in mind, you’re one of the few. There are so many small figures that go into determining the true cost of recruitment, from the opportunity cost of having a vacancy to the hiring manager’s time to the tools required to fill the job.
Simply making a list of every expense that goes into hiring is no easy feat. That’s where most people lose their concentration. Going beyond that to name a price for each factor is a step that’s almost never taken.
Fear not - this time, we’re doing it for you. Download the True Cost of Recruitment for a closer look at the numbers, or read on for a brief preview.
Cost 1: What You Miss Out On
Each day your positions sit empty is a missed day of productivity. Not only is there wasted money in underutilized equipment - overhead you’re paying for employees who aren’t there - but there is a huge amount of opportunity cost. Your business could be producing more if that vacancy were filled.
Combining what each worker makes your company with the wasted cost of overhead, every day that a position sits unfilled, you’re missing out. By our calculations, a vacancy for a $14 per hour employee can end up costing you more than $200 per day. Check out the full breakdown by downloading the True Cost of Recruitment.
Cost 2: Replacement Costs
There are a number of tools required to hire, from job postings to background checks.
What adds up even quicker is the time required to hire a good worker. Every hour you, your HR team, or hiring managers spend working to find, screen, interview, and onboard a suitable candidate is a sunk cost. Think about how much their time is worth to the company, and whether or not hiring is the best possible use of that time. Chances are, this is a big chunk of your cost to hire, and those skilled leaders could be more productive using their time in other ways.
Ready to dig into the numbers? Download the True Cost of Recruitment today for a look into how these expenses add up.
