Let’s look at some of these direct costs:
Recruiting costs – costs incurred during the initial search for the candidate. These costs may include fees for print ads, online job board posts/social media posts, employee referral programs, job fairs, etc. In addition, you should include the time that an employer may take to do his/her own recruiting from networks, contacts and other referrals.
Screening costs – the cost of the recruiter’s time to understand the job requirements, develop and implement a sourcing strategy, review resumes and backgrounds, prepare candidate assessments, etc. A third party outsource service, such as itsQuest, reduces the impact of influences an internal manager may deal with and use an objective analysis to qualify the candidate.
Interviewing costs – includes the cost of scheduling interviews, the reimbursement of travel to and from the interview, and the actual time involved (for all employees) in conducting the interviews.
Testing costs – cost for pre-employment tests to help assess a candidate’s skills, abilities, aptitude, attitude, values and behaviors. These costs include any software subscription fees, per-test charges, and cost of the employee’s time who administers them.
Other hiring costs – includes the time and cost for follow-up with candidates during negotiations and to notify those who were not selected. In addition, there are relocation fees, background checks, reference checks and drug screens.
Some hiring costs are less tangible and may be more difficult to measure. These can include:
Time to place the new employee
Hiring the wrong employee
Not every candidate will incur these expenses. This partial list is designed to highlight the fact that managing the hiring process in-house may not always be cost-effective.
It is a significant investment of money and resources to internally implement the hiring process. By partnering with a trusted human capital management firm, like itsQuest, these costs are either eliminated or mitigated. Not only does this save your money, but it allows you to focus your time and resources on growing your business, while itsQuest finds the best employees.
ITSQUEST is a Great Company!
When the time has come to expand your business, you have two choices: manage the hiring process “in-house” or partner with a reputable human capital management (i.e. staffing) firm like itsQuest.