The Hidden Cost of Hiring You May Be Missing
When you need to fill a role on your team, it can be hard to rationalize spending a little more to bring in outside help in finding a great fit. After all, you know your business. You know what you need, right? Who could find the right person faster or more cost effectively than you?
The truth is, the cost of hiring is a lot more than the salary paid to a new employee or a fee paid to an agency. In today’s job market there are more open positions than there are qualified marketers to fill them. This means finding qualified candidates is harder than ever before. And if part of your week is filled up with recruiting work, not only are you down one team member for the position you’re hiring for, you’re also not operating in your own role at full capacity.
With all of these factors to consider, working with a proven staffing firm may be a great option for you. Here are just a few reasons:
- You can rest assured that recruiters are actively finding great candidates and you can get back to working toward reaching the goals of your company.
- Not only does working with a staffing firm release you from the details and time it takes to find good candidates, the longer it takes to hire new personnel, the greater the chance of losing out on qualified and interested candidates.
- Recruiters have access to a vast network of top talent. They can find those hidden candidates who may have your desired but hard to find combination of skills, experience, and personality. Whether you need help staffing a project, filling a leave of absence or finding someone with a specific skill set for a newly created position, recruiters can find the perfect fit.
But beyond just focusing on recruiters as the solution, let’s back up to look at the real cost that accrues when positions are unfilled and the costs associated with hiring and training a new employee. By getting clarity around these hidden costs, you can make better-informed decisions about your marketing staffing needs. You will also be better able to budget for the coming year.
The Hidden Cost of Unfilled Positions
According to research conducted by CareerBuilder.com, hiring managers must get someone in an open role as quickly as possible in order to be cost effective. The longer a role remains open, the longer it will take to answer customer concerns or complaints, complete orders, or grow new business. CareerBuilder.com offers a two-step calculation that can be used to figure out how much an open position is truly costing.
Step 1: Calculate Revenue per Employee by dividing annual company revenue by the number of employees (R/E = Revenue per Employee)
Step 2: Calculate Daily Revenue per Employee by dividing the annual revenue per employee by 365 days in the year to get the daily revenue by employee.
This calculation is offered as a base, as different roles have different costs per day based on how much revenue they bring into an organization. The costs of keeping a role open need to be weighed against recruitment costs in order to determine the best plan of action.
The Hidden Cost of Hiring Without a Staffing Firm
Finding the right person for an opening can be a lengthy, time-consuming process and a marketing professional should be focused on what he or she does best – marketing – not on being a recruiter. Consider the hidden costs that accrue when a marketer is sidelined by being tasked with the following duties:
- posting job ads
- scouring LinkedIn
- culling through hundreds of resumes
- conducting numerous phone and in-person interviews
This time could be better spent on managing projects, providing deliverables, and completing marketing-related tasks. The hiring and interviewing process can become counterproductive as the marketer’s workload quickly gets out of control. When marketing deadlines aren’t met, targets are missed and this can have a negative impact on ROI.
The next time you find yourself understaffed, take a moment to use these formulas and weigh the hidden costs of hiring before determining if it’s best to go it alone or to partner with a staffing firm to find your next team member.